If you’re a big fan of shopping at Costco but sometimes question whether it’s wise to spend money on a membership renewal, we have a few ideas to help you offset the cost and maximize your membership.

Pay with rewards from cash back card

The only type of credit card Costco accepts at its warehouses is Visa. But this shouldn’t hold you back. There are many great Visa card options. Some Visa cards offer cash back on every purchase. Here’s how using a cash back card at Costco can add a little extra money to your bank account each month:

1. You save money by paying less for the items you need at Costco.
2. You save even more by earning money from your purchases.

Imagine that the card you use daily gives you an average return of 3% and you use this card to cover your monthly expenses of $ 2,500. That’s $75 in cash back each month. As long as you pay off the card in full before a new billing cycle begins each month, you’re cash ahead.

Here’s how long it will take for you to earn enough cash to cover the cost of membership:

Data source: Costco and author’s calculations.

If you are looking for a Visa card for Costco, Click here for our favorites. None of them have an annual fee, but each rewards you for shopping.

Use a Costco Store Card

The Costco Store Card is a gift card that can be used at any Costco store in the United States, Canada or Puerto Rico. If you prefer, you can use it online at Costco.com or Costco.ca. Costco Store Cards can be used to pay for products or cover the cost of your annual membership.

Costco sometimes offers a Store Pass when you purchase a membership. However, you can also earn Store Cards in other ways. For example, you’ll receive a Store Card from Costco worth 10% of what you spend on upholstery and carpet. Or, if you purchase a garage door, you’ll earn a Store Card worth 15% of what you paid. In short, if you have home renovation projects, be sure to check out Costco while price shopping.

Let’s say you spent $3,000 on new kitchen countertops. Earning a Store Card worth 10% back is like getting $300; This is more than enough to pay for several times your annual membership.

Spring for executive membership

At $130, the Executive membership costs twice as much as a Gold Star membership. However, you may find that the cashback benefit more than makes up for the higher price.

Executive members earn 2% back on eligible Costco and Costco Travel purchases and can earn up to $1,250 per year. For example, if you booked a $2,500 trip through Costco Travel and spent an average of $333.33 per month on eligible Costco purchases, you would have spent a total of $6,500. That $6,500 spend automatically gets you $130 back; This is enough to cover the cost of Executive membership.

There are many businesses, including credit card companies, competing for your business. One way to do this is to sweeten the money with cash back. You can make the most of cash back by purchasing a membership, which will save you even more on the things you need. As you no doubt know, it pays to play smart with your personal finances.