Money Management

Halloween costumes are now available at Costco. Here’s how keeping track of popular seasonal items can save you time and money. 

Costco offers many great bargains on a wide variety of products so warehouse club members can keep more money in their bank account. But some deals have a short shelf life, and that means it’s time to act quickly when they become available

In particular, one seasonal item has arrived at Costco that has the potential to sell out fast. You’ll want to break out your credit cards for this one, and you should act fast before the items are gone for good.

Grab this Costco item now before it’s too late

The seasonal item now on Costco’s shelves that you should check out ASAP is Halloween costumes.

While Halloween may seem like it’s a long time away, the holiday is actually coming up fast. And, it can be an expensive event. One study from 2022 found that the average price for adult costumes is around $50, with costs typically ranging between $30 and $70. And, for kids, the average price is $30 but the typical costume is generally anywhere from $20 to $40.

Costco offers costumes at better prices than many competitors, and it has a decent selection of options for kids of all ages and who are into all different themes. For example, the warehouse club has astronaut, dinosaur, unicorn, pirate, and princess costumes (and more!), all on sale both in-store and online.

And many of these offers are priced well below what competitors would charge for similar products. Your dinosaur-loving son or daughter would look adorable in Costco’s Teetot Dinosaur Child Costume for $33.99 from Costco online, while a similar dino outfit would set you back about $37 from Amazon. Or, Costco’s Teetot Pirate Captain Child Costume could have your child ready to sail the high seas for $33.99 instead of $49.00 from Amazon for a similar outfit.

This savings can really add up — especially if you have multiple kids. And Costco’s costumes tend to be good quality and durable, so you won’t have to worry about your little princess having a tattered skirt by the time you get to the third house during trick-or-treating.

The one issue, though, is that Costco’s costumes also tend to sell out pretty quickly — at least in stores near me, as well as in locations where my friends shop throughout the country. You don’t want to leave your shopping to the last minute and end up with no selection of costumes or get stuck paying a higher price with a competitor.

Keep up to date on Costco’s seasonal items

Visiting Costco now to get your Halloween gear is a smart move. And it’s also worth keeping in mind that seasonal items, like Halloween and Christmas gear, tend to go on sale a few months before the big event.

So, when you plan your warehouse club trips, think ahead for what you may need in the coming months. If you have a chance to buy it at a good price before the selection is picked over, don’t hesitate to do it. You can’t assume the item will still be on the shelf when you’re ready for it, so plan ahead with your budget and buy these items several weeks before you need them to avoid a last minute scramble that could hurt your personal finances.

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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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com and Costco Wholesale. The Motley Fool has a disclosure policy.

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Getting a mortgage isn’t easy when you’re self-employed, as lenders get nervous when you don’t have a traditional employer. Here’s what you should do. 

If I do say so myself, I am the ideal candidate for a mortgage loan. I have an 811 credit score, I keep my housing and debt costs well below the recommended 36% of income, and I have assets in reserve so there’s a very low risk I’ll default on the loan.

Despite seeming like the perfect borrower, I have had challenges every single time I have applied for a mortgage. It’s taken me a long time to get approved and some lenders refused to give me a loan at all.

Here’s why.

Self-employed borrowers face a host of challenges in getting a mortgage loan

There’s a simple reason why I have had a hard time getting a mortgage each time I wanted to buy a house. The issue is that I am self-employed. And that’s a problem for a lot of different reasons, including the following:

It’s harder to prove income when you’re self-employed. I don’t get a steady paycheck from an employer who gives me paystubs. My income comes from my business. So, lenders have to comb over tax returns to try to determine how much I make.Self-employed borrowers may have lower incomes on paper. When you are self-employed, you can claim a lot of tax deductions that other people can’t always claim. It makes sense to reduce your taxable income as much as possible by claiming deductions. But that makes your income look lower when you try to get a mortgage. This is an issue in my family, because both my husband and I are self-employed. We claim every deduction and business expense we’re eligible for. Self-employed borrowers may have less stable incomes. If you get a traditional paycheck, chances are good you make about the same amount each year. This often isn’t the case if you’re self-employed. My income has fluctuated substantially over the years, and it has also come from different clients rather than from the same employer each year. Down payment funds may appear to come from “business accounts.” If you have any money in your business account that you plan to transfer to your personal account to help cover the down payment or closing costs, this can raise lender concerns about the impact this withdrawal will have on company operations.

If you are self-employed, chances are good you’ll have these same issues. And they can make getting a loan a lot more hassle. Not only will you have to submit a ton of extra paperwork and documentation, but you may not have all your income counted to determine if you can borrow. And, some lenders may simply decide they don’t want to lend to you because your lack of traditional employment creates too big a risk.

What can you do if you’re struggling to get a loan?

Although I have had trouble getting a mortgage loan due to my self-employed status, I’ve ultimately been able to succeed each time I’ve purchased or refinanced a home. If you’re also having a hard time getting a mortgage, either because you’re self-employed or for other reasons, here are some steps I’ve taken to resolve the problem that may work for you as well:

Find a lender that specializes in your situation. If you are an entrepreneur like me, look for a mortgage lender that frequently lends to business owners. If you have low credit or limited income or a lot of debt or some other obstacle, find a lender that caters to the type of borrower you are. It does you little good to apply with a lender who isn’t experienced in handling similar clients or who doesn’t want to lend to people like you. Buy less house than you can afford on paper. If you already present a risk to a lender, don’t aim to stretch your budget as far as it will go. Borrowing less than you can afford will reduce the risk to the lender — and will also help you keep your housing payments affordable. Make a bigger down payment. Putting more money down also decreases a lender’s risk and makes it more willing to give you a loan.Aim to fix the issues you can. If you can make a change to become better qualified, aim to do so. For example, when I got my most recent mortgage, I moved all my business funds over that I’d need three months before I applied for my home loan. Since the lender only asked for three months of bank statements, I didn’t have to provide a long explanation about the impact of the business funds transfer since the lender didn’t see it. If you can, try to fix whatever your problem is, such as by paying down some debt if you owe a lot relative to what you earn. You could work to improve your credit score by asking lenders to remove negative information from your record.

Taking these steps before applying for a home loan can save you a world of hassle. You may still struggle as I did, but at least you’ll be prepared and ready to maximize your chances of success.

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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.The Motley Fool has a disclosure policy.

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Credit cards are one of the best ways to improve your credit score. Here’s why you don’t have to give up this benefit if you’re scared to use them. 

Credit cards are a helpful tool to build credit. But many people are afraid to use them because of the high interest rates they come with.

The average credit card interest rate is over 20%, so that’s not an unfounded fear. If you are not 100% sure you’ll be able to pay off your card in full every month before you owe interest, then steering clear of charging could be the right call.

The good news is, you don’t have to put your personal finances at risk with high credit card interest charges just to use cards to improve your credit score. There’s a very simple way you could get the credit-building benefits a card provides without taking on the risk of overspending.

This technique could help you build credit without risk

The big danger of credit cards is that you’ll let your spending get out of control and find yourself with a balance you can’t pay back at the end of the month. But, this can be avoided if you get a card, set up a single recurring transaction on it, and then arrange to have that amount auto-paid each month.

For example, let’s say you have a $15.49 per month Netflix account. Arrange to have this charged to your credit card and set up an automatic payment for that amount the very next day after the Netflix charge is put on the card. Then, put the card away where you won’t be tempted to use it — or even cut it up if you really can’t trust yourself.

With this approach, you won’t be at risk of ending up in credit card debt trouble because you won’t be using your card to charge everyday purchases or to pay for things like vacations or other splurges. The sole purpose of the card will be to help you increase your credit score.

How this approach can help you build credit

It may seem silly to go to all this effort just to get a credit card for one recurring payment. But, the reality is, credit cards are a great tool to help you improve your credit score. See, your credit score is determined by the following factors:

Your payment historyYour credit utilization ratio (credit used versus how much credit is available) The average age of your credit historyThe mix of different kinds of credit you haveThe number of new inquiries on your credit report (inquiries are put on your report each time you apply for new credit)

If you put a single recurring payment on your card and you pay it off in full each month, you’ll develop a positive payment history. You’ll keep your credit utilization ratio very low since you’ll only have one small charge. Your credit card will count as one of your different credit types, and you can keep the card open for a long time to help you get a longer credit history. And you can do all this virtually without risk if you just get the card, set up the system, and then put it out of reach.

It is understandable to be afraid of credit card debt — although, ideally, you can work to overcome this fear by living on a budget and getting your spending under control so you can reap other benefits, like earning credit card rewards.

But if you really just don’t like debt or don’t trust yourself, this doesn’t mean you have to give up the chance to build credit. When you go to get a mortgage, car loan, or other debt you absolutely have to take on, the credit history that this approach helps you develop will really come in handy.

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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.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy.

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You can shop online at Costco without joining. Read on to see how that might cost you extra. 

For many people, joining Costco is an easy decision. Although you’ll spend $60 a year for a basic membership and $120 a year for an Executive membership that gives you 2% cash back on your purchases, the savings you’ll reap will often be enough to pay for your membership and then some. But if you’re someone who doesn’t expect to visit Costco very often — say, because your closest warehouse club store is far away — then a membership may not make sense for you financially.

The bad news is that you need a Costco membership to shop at the stores. When you go there, you’ll be asked to show your membership card at the door. And if you don’t have one, you’ll be denied entry unless you happen to have a Costco Shop Card to spend (that’s Costco’s version of a store gift card).

But Costco.com is a different story.

Costco.com is open to non-members, though there are certain items that are marked as member-only exclusives. But there’s still a wide range of products you can purchase online from Costco as a non-member, from grocery items to paper goods.

However, shopping online at Costco without a membership will generally result in a higher credit card tab. So if you plan to shop at Costco.com pretty often, a membership could make sense.

What not being a Costco member will cost you

If you’re not a member of Costco, you’ll generally face a 5% surcharge over posted prices for members with the exception of prescription drugs. The reason?

Costco uses the fees it charges members to help offset its costs. And it’s because of those fees that it’s able to offer a wide range of products at affordable prices. But if you’re not paying for a membership, you don’t get to benefit in quite the same way.

That’s why it could pay to join Costco even if you don’t expect to set foot in the store very often. Let’s say you place one online order a month at Costco that would cost members $120 but costs you $6 more due to the aforementioned surcharge. All told, you’re paying $72 a year in added charges. But a basic Costco membership only costs $60.

So even though it might initially seem silly to get a membership simply to shop online, in this example, you actually save yourself $12 a year. That’s not a life-changing sum, but you might as well save that money and buy yourself a few lattes or whatever little treat makes you happy.

Run the numbers

It’s easy enough to assume it doesn’t pay to join Costco when you only want to shop online. And if you’re only placing one or two orders a year, then yes, skipping the membership might make sense. But before you make that call, crunch the numbers. You may find that it’s worth forking over $60 for a basic membership.

And also, a basic membership gives you access to member-only items online. So that’s something to factor into your decision as well.

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In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

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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.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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