Is Sharing Your Costco Card Really Saving You Money?

Nov 03, 2024

As of today, a Costco membership costs either $65 or $130 annually, depending on the membership level. While it's not a fortune, it's not nothing, and sharing a membership with someone else may seem like the best use of your resources.

Earn up to $845 cash back this year just by changing how you pay at Costco! Learn more here.

If you split the cost of a membership with another person or occasionally allow someone to use your membership card, there's no judgment from us. We understand how tricky sticking with a household budget can be, even if you're using one of the best budgeting apps. However, we thought it might be interesting to take a closer look at whether sharing equals saving money.

Let's say you shop in-store with your best friend's Costco card. Sure, you have access to the products on the shelf, but you don't have access to all the benefits available to the person whose name is on the card. Here's a little of what you're missing:

Travel discounts

Tire discounts

Home, auto, and pet insurance

Special coupons

Costco Membership Prescription Program discounts

Photo print discounts, including photo books, calendars, cards, posters, and more

Bottled water delivery

Vehicle purchase discount

If the cardholder is an Executive member, they can earn 2% on all eligible purchases, up to $1,250 annually. A member who regularly shops at Costco can easily earn enough back to pay for their annual membership -- and more.

Want to maximize your Costco rewards? Click here to check out a credit card we recommend for Costco shoppers.

In other words, you may be able to purchase a bag of apples or 25 pounds of rice, but you're overlooking a wide range of other discounts that could benefit your bottom line when you use someone else's membership card. These discounts and perks could be worth getting a membership of your own.

If you're a Costco member who allows others to use your membership to shop, the cost may be higher than expected. Recently, Costco implemented new rules regarding identification. Members must now stop at the entry to scan their cards, and cashiers may ask to see a picture ID at checkout.

Costco has long made it clear that memberships are non-transferable, meaning members aren't supposed to give their cards to someone else to use. You're permitted to bring up to two guests to the store during each visit as long as you're the one purchasing the items.

And if you're the primary member, you can assign your household card to one other person who lives in your home. However, sharing your card with someone else is grounds for Costco to revoke your membership and refund your membership fee.

If you count on Costco to keep your household budget on track, consider what losing your membership might mean for your finances. In most instances, sharing is a good thing. However, you may not find that to be true if you're still sharing a Costco card with someone else.

We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America's favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco. Add on the competitive 0% interest period and it's no wonder we awarded this card Best No Annual Fee Credit Card.

Click here to read our full review for free and apply before the $200 welcome bonus offer ends!

We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Dana George has positions in Apple. The Motley Fool has positions in and recommends Apple and Costco Wholesale. The Motley Fool has a disclosure policy.

Is Sharing Your Costco Card Really Saving You Money? was originally published by The Motley Fool