Money Management

[[{“value”:”Image source: The Motley Fool/Unsplash
The nice thing about savings accounts is that they serve as a safe place to park cash while giving you complete flexibility with your money. Want to take a $500 withdrawal on a whim to pay for a weekend getaway? You don’t have to worry about a penalty, which may come into play if you remove funds from a CD before it matures.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. Of course, you may not earn as much money in a savings account as what a CD pays you. But the ability to take your money out at any point may be worth the lower interest rate.And if you shop around for a great high-yield savings account, your APY may be comparable to what a CD pays you. Click here for a list of the best savings accounts and rates available today.But that said, it’s important to know how much money to put into your savings account. Here’s how to figure it out.Calculate your emergency fund needsYour savings account is the best place to keep your emergency fund — money earmarked for unplanned expenses or a period of unemployment (which could unfortunately happen to anyone). Financial experts generally recommend having an emergency fund with enough money to cover three to six months of essential expenses.Whether you opt to target the low end of that range or the high end should depend on your personal situation, such as whether you’re the only income-earner in your household, whether you have dependents, and so forth. And you may even decide to go beyond the six-month recommendation, which makes sense if, for example, you have a very unique job that would be hard to replace in a layoff.But once you figure out how many months’ worth of expenses you want available for emergency fund purposes, look through your monthly bills to figure out what your essentials come to. If you commonly spend $3,000 a month on rent, utilities, transportation, and food, and you decide on a six-month emergency fund, it means you should aim for $18,000 in your savings account.See if you have near-term financial goals on your radarYou may have money you’re setting aside for specific goals, like upgrading to a new car. Money you expect to need within a few years can also sit in a savings account. In some cases, you may be OK to put it into a CD, too, if you’re certain of your time frame.But a savings account is an even safer option in case you wind up needing your money sooner than expected. That way, you don’t risk an early withdrawal penalty.Don’t go overboard with your savings accountIt’s not a good thing to have too little money in your savings account. But it’s actually not a great thing to have too much money, either.While savings accounts still pay pretty generously these days, rates could fall in the coming months as the Federal Reserve cuts interest rates. And even if that somehow doesn’t happen, over the past 50 years, the S&P 500’s average annual return has been 10%, accounting for periods when stocks did well and periods when they tanked. So even if you keep getting around 4% from your savings account over time, that return might pale in comparison to what a stock portfolio pays you.Let’s say you keep an extra $5,000 in your savings account beyond what you need for emergency expenses and near-term goals. At 4% a year, you’re looking at growing that sum to about $11,000 over the next 20 years.But at an annual 10% return, you’re looking at about $33,600. That’s a difference of over $22,000. If your savings account is overfunded, consider opening a brokerage account and start investing as soon as possible.Savings accounts offer the benefit of flexibility without taking on the same risks you do with a stock portfolio (though to be clear, investing over a long period can help lower the risk of losing money). But it’s important to get your balance just right. That means you don’t want it to be so low that you’re not properly protected against emergencies. But you also don’t want to keep too much extra money in there, since that could mean losing out on much higher returns in the long run.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

The nice thing about savings accounts is that they serve as a safe place to park cash while giving you complete flexibility with your money. Want to take a $500 withdrawal on a whim to pay for a weekend getaway? You don’t have to worry about a penalty, which may come into play if you remove funds from a CD before it matures.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

Of course, you may not earn as much money in a savings account as what a CD pays you. But the ability to take your money out at any point may be worth the lower interest rate.

And if you shop around for a great high-yield savings account, your APY may be comparable to what a CD pays you. Click here for a list of the best savings accounts and rates available today.

But that said, it’s important to know how much money to put into your savings account. Here’s how to figure it out.

Calculate your emergency fund needs

Your savings account is the best place to keep your emergency fund — money earmarked for unplanned expenses or a period of unemployment (which could unfortunately happen to anyone). Financial experts generally recommend having an emergency fund with enough money to cover three to six months of essential expenses.

Whether you opt to target the low end of that range or the high end should depend on your personal situation, such as whether you’re the only income-earner in your household, whether you have dependents, and so forth. And you may even decide to go beyond the six-month recommendation, which makes sense if, for example, you have a very unique job that would be hard to replace in a layoff.

But once you figure out how many months’ worth of expenses you want available for emergency fund purposes, look through your monthly bills to figure out what your essentials come to. If you commonly spend $3,000 a month on rent, utilities, transportation, and food, and you decide on a six-month emergency fund, it means you should aim for $18,000 in your savings account.

See if you have near-term financial goals on your radar

You may have money you’re setting aside for specific goals, like upgrading to a new car. Money you expect to need within a few years can also sit in a savings account. In some cases, you may be OK to put it into a CD, too, if you’re certain of your time frame.

But a savings account is an even safer option in case you wind up needing your money sooner than expected. That way, you don’t risk an early withdrawal penalty.

Don’t go overboard with your savings account

It’s not a good thing to have too little money in your savings account. But it’s actually not a great thing to have too much money, either.

While savings accounts still pay pretty generously these days, rates could fall in the coming months as the Federal Reserve cuts interest rates. And even if that somehow doesn’t happen, over the past 50 years, the S&P 500’s average annual return has been 10%, accounting for periods when stocks did well and periods when they tanked. So even if you keep getting around 4% from your savings account over time, that return might pale in comparison to what a stock portfolio pays you.

Let’s say you keep an extra $5,000 in your savings account beyond what you need for emergency expenses and near-term goals. At 4% a year, you’re looking at growing that sum to about $11,000 over the next 20 years.

But at an annual 10% return, you’re looking at about $33,600. That’s a difference of over $22,000. If your savings account is overfunded, consider opening a brokerage account and start investing as soon as possible.

Savings accounts offer the benefit of flexibility without taking on the same risks you do with a stock portfolio (though to be clear, investing over a long period can help lower the risk of losing money). But it’s important to get your balance just right. That means you don’t want it to be so low that you’re not properly protected against emergencies. But you also don’t want to keep too much extra money in there, since that could mean losing out on much higher returns in the long run.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money 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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[[{“value”:”Image source: Getty Images
I bought my first house last year, which meant getting a mortgage of around $225,000. Given the amount of research I’ve done on the subject, I thought I had a pretty good idea of how it all would work.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. Despite this research, however, I was still flabbergasted when I discovered how little of my monthly payments were going toward my actual principal — and how much was going everywhere else.10% of payments went to principal, 65% to interest feesOver the first 12 months of my mortgage, I paid a total of about $23,000 to the bank. Of that, a little over 10%, or about $2,400, went to paying down my principal. In other words, after a year of making payments, I only paid off 1% of my original principal balance.So, where did the other $20,000-plus of my money actually go? Well, a whopping $15,100 of it went to paying interest fees. (For those playing the home game, that’s about 65% of my total payments.)Moral of the story: Even competitive interest rates hit big on a six-figure mortgage. If you’re looking for a house right now, be sure to shop mortgage rates as hard as you do home prices.Check out our top mortgage lenders to start your search for the best rate.About a quarter went to the escrow accountWhile interest fees definitely eat up the bulk of my payment, the amount that goes into escrow is no small portion, either. Indeed, it’s around 24%, which worked out to be a little over $5,500 for the year.The escrow account is where my bank keeps the money that goes toward paying bills like property taxes and homeowners insurance. This amount will usually be the same each month, though it may go up or down if there is a major change in the cost of your taxes or insurance (mine went down slightly after the first six months).Having an escrow account was a requirement of my mortgage, and I’m honestly content to let the bank deal with those bills. However, if you’re not paying into escrow, make sure you’re saving every month for your insurance and tax payments — and consider opening a high-yield savings account to keep it in so it can grow.Extra payments pay down your principal fasterIf you’re frustrated by your principal decreasing at a snail’s pace, the best solution is to make multiple mortgage payments whenever you can.The way most mortgages work is that your payment goes to escrow and interest first, then the rest to your principal. Any additional payments you make during that same statement period will go entirely toward your principal.Your interest is based on your principal, so as your principal goes down, your interest fees will decrease, too. This means more of your monthly payment will go toward your principal, paying it down even faster!Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

I bought my first house last year, which meant getting a mortgage of around $225,000. Given the amount of research I’ve done on the subject, I thought I had a pretty good idea of how it all would work.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

Despite this research, however, I was still flabbergasted when I discovered how little of my monthly payments were going toward my actual principal — and how much was going everywhere else.

10% of payments went to principal, 65% to interest fees

Over the first 12 months of my mortgage, I paid a total of about $23,000 to the bank. Of that, a little over 10%, or about $2,400, went to paying down my principal. In other words, after a year of making payments, I only paid off 1% of my original principal balance.

So, where did the other $20,000-plus of my money actually go? Well, a whopping $15,100 of it went to paying interest fees. (For those playing the home game, that’s about 65% of my total payments.)

Moral of the story: Even competitive interest rates hit big on a six-figure mortgage. If you’re looking for a house right now, be sure to shop mortgage rates as hard as you do home prices.

Check out our top mortgage lenders to start your search for the best rate.

About a quarter went to the escrow account

While interest fees definitely eat up the bulk of my payment, the amount that goes into escrow is no small portion, either. Indeed, it’s around 24%, which worked out to be a little over $5,500 for the year.

The escrow account is where my bank keeps the money that goes toward paying bills like property taxes and homeowners insurance. This amount will usually be the same each month, though it may go up or down if there is a major change in the cost of your taxes or insurance (mine went down slightly after the first six months).

Having an escrow account was a requirement of my mortgage, and I’m honestly content to let the bank deal with those bills. However, if you’re not paying into escrow, make sure you’re saving every month for your insurance and tax payments — and consider opening a high-yield savings account to keep it in so it can grow.

Extra payments pay down your principal faster

If you’re frustrated by your principal decreasing at a snail’s pace, the best solution is to make multiple mortgage payments whenever you can.

The way most mortgages work is that your payment goes to escrow and interest first, then the rest to your principal. Any additional payments you make during that same statement period will go entirely toward your principal.

Your interest is based on your principal, so as your principal goes down, your interest fees will decrease, too. This means more of your monthly payment will go toward your principal, paying it down even faster!

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: Getty Images
Vacations can be more than just fun. They can be a seriously needed break from the grind and a great thing for your mental health.Top credit card to use at Costco (and everywhere 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!There are plenty of budget-friendly travel sites you can turn to for your next vacation. But if you’re a Costco member, you may want to consider booking your next trip through Costco Travel. Not only might you save money by locking in a great deal, but you might enjoy these lesser-known perks.1. Cash back on an Executive membershipCostco sells two different memberships. A basic one costs $65 per year and doesn’t give you cash back on your purchases. An Executive membership costs $130 per year and gives you 2% back on the things you buy at Costco — including vacations.Although certain purchases, like gas, aren’t eligible for cash back with an Executive membership, travel purchases count. If you book a $3,500 trip, you’ll get $70 added to your annual Executive membership reward. And in that case, a single trip is enough to cover the cost of the entire Executive membership upgrade ($65).Plus, if you double up with a great rewards credit card, you can earn even more points or cash back from your trip. Click here for a list of the best rewards cards for Costco spending. But also, do note that Visa and Mastercard are the only forms of payment accepted by Costco Travel for cruise or vacation package bookings.2. Your own personal travel agentEven if you’re someone who enjoys traveling, sometimes, wading through your choices can be overwhelming. Another benefit of booking a vacation through Costco is that you can enlist the help of a travel expert to help you find the right itinerary. You’ll also get the support of Costco’s travel experts in case things go wrong.Say you book a cruise through Costco that ends up getting canceled. In that case, you don’t have to be the one to contact the cruise line and figure out how to get rebooked or refunded. Costco will handle that for you.3. Extra spending money during or after your tripIt’s not just that Costco prices its vacation packages competitively. Many of them also give you extra spending money to use during or after your travels.For example, if you book a resort stay through Costco, you may be entitled to a credit you can redeem for services that aren’t included in your base price, like spa services or alcohol. Some Costco travel packages reward you with a Shop Card (Costco’s version of a gift card), the amount of which is calculated depending on the cost of your trip.You’ll typically receive your Shop Card a week or so after your vacation, which means your groceries and household supplies might be free or less expensive during your next trip to the store. And when you’ve just spent money on a vacation, it can be nice to get your groceries for free.Clearly, there’s much to be gained from booking a vacation through Costco. If you’ve been saving for one, it pays to take a look at the many offers Costco has available now.Top credit card to use at Costco (and everywhere 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money 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, Mastercard, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Vacations can be more than just fun. They can be a seriously needed break from the grind and a great thing for your mental health.

Top credit card to use at Costco (and everywhere 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!

There are plenty of budget-friendly travel sites you can turn to for your next vacation. But if you’re a Costco member, you may want to consider booking your next trip through Costco Travel. Not only might you save money by locking in a great deal, but you might enjoy these lesser-known perks.

1. Cash back on an Executive membership

Costco sells two different memberships. A basic one costs $65 per year and doesn’t give you cash back on your purchases. An Executive membership costs $130 per year and gives you 2% back on the things you buy at Costco — including vacations.

Although certain purchases, like gas, aren’t eligible for cash back with an Executive membership, travel purchases count. If you book a $3,500 trip, you’ll get $70 added to your annual Executive membership reward. And in that case, a single trip is enough to cover the cost of the entire Executive membership upgrade ($65).

Plus, if you double up with a great rewards credit card, you can earn even more points or cash back from your trip. Click here for a list of the best rewards cards for Costco spending. But also, do note that Visa and Mastercard are the only forms of payment accepted by Costco Travel for cruise or vacation package bookings.

2. Your own personal travel agent

Even if you’re someone who enjoys traveling, sometimes, wading through your choices can be overwhelming. Another benefit of booking a vacation through Costco is that you can enlist the help of a travel expert to help you find the right itinerary. You’ll also get the support of Costco’s travel experts in case things go wrong.

Say you book a cruise through Costco that ends up getting canceled. In that case, you don’t have to be the one to contact the cruise line and figure out how to get rebooked or refunded. Costco will handle that for you.

3. Extra spending money during or after your trip

It’s not just that Costco prices its vacation packages competitively. Many of them also give you extra spending money to use during or after your travels.

For example, if you book a resort stay through Costco, you may be entitled to a credit you can redeem for services that aren’t included in your base price, like spa services or alcohol. Some Costco travel packages reward you with a Shop Card (Costco’s version of a gift card), the amount of which is calculated depending on the cost of your trip.

You’ll typically receive your Shop Card a week or so after your vacation, which means your groceries and household supplies might be free or less expensive during your next trip to the store. And when you’ve just spent money on a vacation, it can be nice to get your groceries for free.

Clearly, there’s much to be gained from booking a vacation through Costco. If you’ve been saving for one, it pays to take a look at the many offers Costco has available now.

Top credit card to use at Costco (and everywhere 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money 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, Mastercard, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: Getty Images
My history with credit cards has had a lot of ups and downs. In the past, I’ve been known to carry a balance and pay interest on that balance — not good. But a few years ago, I was able to increase my income and pay off all my outstanding debt, credit cards included.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. This has been great for me and my bottom line. But it’s less great for credit card issuers, who are now making a lot less money off my interest payments.Early last year, I decided to ask for a higher credit limit on a travel credit card I’d had for several years. I liked the card, and at that time, I was planning my first-ever visit to the U.K. I figured the card could help me cover my travel expenses with no foreign transaction fees.My limit on the card was $5,000, so I asked for it to be raised to $8,000. Here’s how it went.Want a credit card with a higher spending limit? Click here for our list of cards that tend to offer higher credit limits.It’s pretty easy to ask for a credit limit increase…When I made up my mind to ask for a higher credit limit, I visited the card issuer’s website. It was pretty easy to find the spot where I could fill in my details. Those included how much I was requesting, my income, occupation, and housing payment (as well as whether I was a renter or a homeowner).At the time, my income had increased significantly from when I’d originally opened the card. I was also still a renter, so my housing payment wasn’t very high. I figured it would be a slam dunk to get approved for an $8,000 credit limit.Sure, this was $3,000 more than my existing limit. But $8,000 isn’t a tremendously high credit card limit. I’d recently been approved for a starting limit of more than twice this on a brand-new card with a different issuer.So I’d get approved, right? Alas, no.…but approval is not guaranteedI was turned down. Wondering if the human touch might help, I called the card issuer to plead my case with a customer service representative. They were very nice, but as it turned out, they couldn’t help me either — I got another rejection.Based on the paperwork I later received in the mail, the card issuer had concerns that I wasn’t using the card enough to justify the increase. It’s true that I had paid off my outstanding balance the previous year, and hadn’t used the card since. But since the reason I was after a higher limit was because I was going to be traveling more, I was definitely willing to use that card to do so.I opened a new card insteadI’m not the kind of person who takes rejection lying down. So when that first card issuer said no to my very reasonable request for an $8,000 credit limit, I decided to explore my options. My credit score had recently crossed the 800 threshold, and the (credit card) world was my oyster.I definitely didn’t want to cancel my original travel rewards credit card. It has no annual fee, is easy to use, and I knew it would make a great backup card for my international trips. So I decided to apply for a new travel rewards card and see if I could get a higher credit limit that way. Spoiler alert: the answer was yes.I applied for one of our favorite travel rewards credit cards — and you could too. Click here to take a look at our curated list and explore your options.I was approved instantly for the card I picked, and the credit limit I was given was more than $20,000 — quite a bit more than I was asking for from that other issuer. Needless to say, I was pretty happy about this turn of events, and the new card has become my main vacation go-to. I even put an entire international trip (plane tickets, hotel stay, food, and more) on it this past spring.What happened to the old card?When I travel, my old travel card still comes along. Bringing more than one card on a trip is a good idea, in case you lose one or there’s some kind of problem (or you just need a bit of extra spending room). I’ve also continued to put expenses on it, to keep the account active. Even though its credit limit isn’t quite as much as I wanted, it’s still a good card and worth hanging onto.Want a higher credit limit? It could be yours for the asking. But if your request is denied, I recommend considering your options for other credit cards. You never know, a different issuer might approve you, no questions asked.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

My history with credit cards has had a lot of ups and downs. In the past, I’ve been known to carry a balance and pay interest on that balance — not good. But a few years ago, I was able to increase my income and pay off all my outstanding debt, credit cards included.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

This has been great for me and my bottom line. But it’s less great for credit card issuers, who are now making a lot less money off my interest payments.

Early last year, I decided to ask for a higher credit limit on a travel credit card I’d had for several years. I liked the card, and at that time, I was planning my first-ever visit to the U.K. I figured the card could help me cover my travel expenses with no foreign transaction fees.

My limit on the card was $5,000, so I asked for it to be raised to $8,000. Here’s how it went.

Want a credit card with a higher spending limit? Click here for our list of cards that tend to offer higher credit limits.

It’s pretty easy to ask for a credit limit increase…

When I made up my mind to ask for a higher credit limit, I visited the card issuer’s website. It was pretty easy to find the spot where I could fill in my details. Those included how much I was requesting, my income, occupation, and housing payment (as well as whether I was a renter or a homeowner).

At the time, my income had increased significantly from when I’d originally opened the card. I was also still a renter, so my housing payment wasn’t very high. I figured it would be a slam dunk to get approved for an $8,000 credit limit.

Sure, this was $3,000 more than my existing limit. But $8,000 isn’t a tremendously high credit card limit. I’d recently been approved for a starting limit of more than twice this on a brand-new card with a different issuer.

So I’d get approved, right? Alas, no.

…but approval is not guaranteed

I was turned down. Wondering if the human touch might help, I called the card issuer to plead my case with a customer service representative. They were very nice, but as it turned out, they couldn’t help me either — I got another rejection.

Based on the paperwork I later received in the mail, the card issuer had concerns that I wasn’t using the card enough to justify the increase. It’s true that I had paid off my outstanding balance the previous year, and hadn’t used the card since. But since the reason I was after a higher limit was because I was going to be traveling more, I was definitely willing to use that card to do so.

I opened a new card instead

I’m not the kind of person who takes rejection lying down. So when that first card issuer said no to my very reasonable request for an $8,000 credit limit, I decided to explore my options. My credit score had recently crossed the 800 threshold, and the (credit card) world was my oyster.

I definitely didn’t want to cancel my original travel rewards credit card. It has no annual fee, is easy to use, and I knew it would make a great backup card for my international trips. So I decided to apply for a new travel rewards card and see if I could get a higher credit limit that way. Spoiler alert: the answer was yes.

I applied for one of our favorite travel rewards credit cards — and you could too. Click here to take a look at our curated list and explore your options.

I was approved instantly for the card I picked, and the credit limit I was given was more than $20,000 — quite a bit more than I was asking for from that other issuer. Needless to say, I was pretty happy about this turn of events, and the new card has become my main vacation go-to. I even put an entire international trip (plane tickets, hotel stay, food, and more) on it this past spring.

What happened to the old card?

When I travel, my old travel card still comes along. Bringing more than one card on a trip is a good idea, in case you lose one or there’s some kind of problem (or you just need a bit of extra spending room). I’ve also continued to put expenses on it, to keep the account active. Even though its credit limit isn’t quite as much as I wanted, it’s still a good card and worth hanging onto.

Want a higher credit limit? It could be yours for the asking. But if your request is denied, I recommend considering your options for other credit cards. You never know, a different issuer might approve you, no questions asked.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money 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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[[{“value”:”Image source: Getty Images
A basic Costco membership costs $65 a year, and you’ll pay $130 a year for an Executive membership that gives you 2% cash back on your purchases.Top credit card to use at Costco (and everywhere 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!No matter which membership you purchase, if you shop at Costco regularly, you can more than make back the fee in the form of savings on groceries and everyday purchases. But if these signs apply to you, it means you may not be getting as much value out of your membership as you deserve.1. You’re not filling up your gas tank at CostcoCostco’s fuel stations sell some of the cheapest gas in town. If you’re not filling up your car when you shop, you’re missing out.But it’s not just that Costco gas is low in price. It’s also high in quality.Costco’s fuel carries the TOP TIER™ designation. This means it’s designed to clean your engine and lead to better performance.Now, you may be aware that as an Executive member, you’re not eligible for the usual 2% cash back at Costco’s pumps. And if the lines to fill up tend to be long, that may deter you from waiting.But if you use the right credit card at the pump, you can score enough cash back to make up for the fact that you aren’t getting any from your Executive membership. Click here for a list of the best credit cards to use at Costco.2. You’re not booking your vacations through CostcoCostco doesn’t just sell physical items — it also sells experiences. And there’s much to be gained by booking a vacation through Costco. If you’ve yet to do so, you may want to take a look and see what packages are available.First of all, Costco’s travel packages tend to be competitively priced. And many include extras like cruise or resort credits that can save you even more. Or, you may be eligible for a Costco Shop Card (the store’s version of a gift card) as a thank you for your booking.Unlike gas purchases, travel purchases through Costco are eligible for 2% back through an Executive membership. And that could put a lot of free money in your pocket. If you’re booking a $3,000 trip, $60 of it comes back to you.3. You’re not buying Kirkland Signature products because you aren’t familiar with the brandIt’s not so unusual to be loyal to the brands you’re used to, whether in the context of food, cleaning supplies, or over-the-counter medications. But if you don’t give Costco’s Kirkland Signature house brand a chance, you could end up missing out on big savings.Costco specifically aims to price its Kirkland products at a 20% discount or more compared to national brands. Plus, Costco is known to stand behind all of the items it sells. If you buy something with the Kirkland label and it doesn’t meet your expectations, you can generally bring it back for a full refund.Costco is one of the only stores that charges people for access. If you’re going to spend that money, you might as well make the most of your membership. You can get more value out of yours by filling up your tank, booking vacations, and loading up on Costco’s Kirkland line of products.Top credit card to use at Costco (and everywhere 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money 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.”}]] [[{“value”:”

A basic Costco membership costs $65 a year, and you’ll pay $130 a year for an Executive membership that gives you 2% cash back on your purchases.

Top credit card to use at Costco (and everywhere 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!

No matter which membership you purchase, if you shop at Costco regularly, you can more than make back the fee in the form of savings on groceries and everyday purchases. But if these signs apply to you, it means you may not be getting as much value out of your membership as you deserve.

1. You’re not filling up your gas tank at Costco

Costco’s fuel stations sell some of the cheapest gas in town. If you’re not filling up your car when you shop, you’re missing out.

But it’s not just that Costco gas is low in price. It’s also high in quality.

Costco’s fuel carries the TOP TIER™ designation. This means it’s designed to clean your engine and lead to better performance.

Now, you may be aware that as an Executive member, you’re not eligible for the usual 2% cash back at Costco’s pumps. And if the lines to fill up tend to be long, that may deter you from waiting.

But if you use the right credit card at the pump, you can score enough cash back to make up for the fact that you aren’t getting any from your Executive membership. Click here for a list of the best credit cards to use at Costco.

2. You’re not booking your vacations through Costco

Costco doesn’t just sell physical items — it also sells experiences. And there’s much to be gained by booking a vacation through Costco. If you’ve yet to do so, you may want to take a look and see what packages are available.

First of all, Costco’s travel packages tend to be competitively priced. And many include extras like cruise or resort credits that can save you even more. Or, you may be eligible for a Costco Shop Card (the store’s version of a gift card) as a thank you for your booking.

Unlike gas purchases, travel purchases through Costco are eligible for 2% back through an Executive membership. And that could put a lot of free money in your pocket. If you’re booking a $3,000 trip, $60 of it comes back to you.

3. You’re not buying Kirkland Signature products because you aren’t familiar with the brand

It’s not so unusual to be loyal to the brands you’re used to, whether in the context of food, cleaning supplies, or over-the-counter medications. But if you don’t give Costco’s Kirkland Signature house brand a chance, you could end up missing out on big savings.

Costco specifically aims to price its Kirkland products at a 20% discount or more compared to national brands. Plus, Costco is known to stand behind all of the items it sells. If you buy something with the Kirkland label and it doesn’t meet your expectations, you can generally bring it back for a full refund.

Costco is one of the only stores that charges people for access. If you’re going to spend that money, you might as well make the most of your membership. You can get more value out of yours by filling up your tank, booking vacations, and loading up on Costco’s Kirkland line of products.

Top credit card to use at Costco (and everywhere 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money 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.

“}]] Read More 

[[{“value”:”Image source: Upsplash/The Motley Fool
Costco memberships got more expensive this year, although it wasn’t a huge increase. A Gold Star membership now costs $65 per year, and an Executive membership costs $130. If you shop at Costco regularly, you could easily save much more than that.Top credit card to use at Costco (and everywhere 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!But any time you’re paying a membership fee, you need to ensure you’re getting your money’s worth. If any of the following are true, you may be better off not renewing your Costco membership in 2025.1. You’ve been spending too much money thereNo one I know has ever successfully grabbed just a few things at Costco. Its warehouses are great at getting you to add extra items to your cart. They’re massive, new products are always arriving, and you need to work your way through the whole store when shopping for groceries. And there are the free sample stations, which often lead to impulse purchases.If your credit card bill has been getting bigger, take a closer look at how much you’re spending at Costco. You could find that your membership is actually costing you money, because you’re going over budget when you shop there. In that case, it might be time to stop going to Costco.Don’t want to give up your membership just yet? You could also look for ways to cut your Costco bill. Check out our No. 1 strategy for saving money at Costco.2. You’re moving and won’t have a Costco nearbyCostco has a lot of locations. It operates over 800 warehouses worldwide and over 600 in the United States. But it’s not one of those stores that’s practically everywhere. Walmart, for comparison’s sake, has over 10,500 locations.If you’ll be living in a new city in 2025, check how close you’ll be to your nearest Costco. Some areas don’t have any Costco warehouses yet, and that includes three states (Rhode Island, West Virginia, and Wyoming).A Costco membership could still be worth it if you have a warehouse within an hour’s drive or so. Some members don’t mind making the occasional long trek to Costco. They typically stock up — make sure you have plenty of space in your freezer before you do this. But if there’s no Costco within a reasonable distance, turn off the auto-renew option in your account so you won’t keep getting charged for a membership.3. It’s not your preferred place to shop anymoreCostco is a unique shopping experience. It has a food court, where you can somehow still get a hot dog and soda for $1.50. It has products you can’t find anywhere else, including many from its popular Kirkland brand. And it frequently rotates in new products for a limited time. People sometimes say that going there feels more like a treasure hunt than a shopping trip.Even checking out is different. Unlike most retailers, Costco doesn’t accept every type of credit card. You can only use Visa, so you’ll want to find the right credit card for Costco if you’re a member. Once you’ve paid, you’ll also need to show your receipt to a receipt checker on your way out.Some people really enjoy the Costco experience. Others would rather just go to a more traditional grocery store. You might find that your tastes change over the years. If you’re starting to prefer shopping at other stores, then you could save money by canceling your Costco membership.A Costco membership offers quite a few perks, but it’s not right for everyone. If you’ve decided not to renew yours, check that the auto-renew is turned off in your account. You could also go in and cancel your membership if you’re sure you don’t want it anymore. Costco has a satisfaction guarantee, so it will refund your membership fee if you decide to cancel.Top credit card to use at Costco (and everywhere 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, Visa, and Walmart. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Costco memberships got more expensive this year, although it wasn’t a huge increase. A Gold Star membership now costs $65 per year, and an Executive membership costs $130. If you shop at Costco regularly, you could easily save much more than that.

Top credit card to use at Costco (and everywhere 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!

But any time you’re paying a membership fee, you need to ensure you’re getting your money’s worth. If any of the following are true, you may be better off not renewing your Costco membership in 2025.

1. You’ve been spending too much money there

No one I know has ever successfully grabbed just a few things at Costco. Its warehouses are great at getting you to add extra items to your cart. They’re massive, new products are always arriving, and you need to work your way through the whole store when shopping for groceries. And there are the free sample stations, which often lead to impulse purchases.

If your credit card bill has been getting bigger, take a closer look at how much you’re spending at Costco. You could find that your membership is actually costing you money, because you’re going over budget when you shop there. In that case, it might be time to stop going to Costco.

Don’t want to give up your membership just yet? You could also look for ways to cut your Costco bill. Check out our No. 1 strategy for saving money at Costco.

2. You’re moving and won’t have a Costco nearby

Costco has a lot of locations. It operates over 800 warehouses worldwide and over 600 in the United States. But it’s not one of those stores that’s practically everywhere. Walmart, for comparison’s sake, has over 10,500 locations.

If you’ll be living in a new city in 2025, check how close you’ll be to your nearest Costco. Some areas don’t have any Costco warehouses yet, and that includes three states (Rhode Island, West Virginia, and Wyoming).

A Costco membership could still be worth it if you have a warehouse within an hour’s drive or so. Some members don’t mind making the occasional long trek to Costco. They typically stock up — make sure you have plenty of space in your freezer before you do this. But if there’s no Costco within a reasonable distance, turn off the auto-renew option in your account so you won’t keep getting charged for a membership.

3. It’s not your preferred place to shop anymore

Costco is a unique shopping experience. It has a food court, where you can somehow still get a hot dog and soda for $1.50. It has products you can’t find anywhere else, including many from its popular Kirkland brand. And it frequently rotates in new products for a limited time. People sometimes say that going there feels more like a treasure hunt than a shopping trip.

Even checking out is different. Unlike most retailers, Costco doesn’t accept every type of credit card. You can only use Visa, so you’ll want to find the right credit card for Costco if you’re a member. Once you’ve paid, you’ll also need to show your receipt to a receipt checker on your way out.

Some people really enjoy the Costco experience. Others would rather just go to a more traditional grocery store. You might find that your tastes change over the years. If you’re starting to prefer shopping at other stores, then you could save money by canceling your Costco membership.

A Costco membership offers quite a few perks, but it’s not right for everyone. If you’ve decided not to renew yours, check that the auto-renew is turned off in your account. You could also go in and cancel your membership if you’re sure you don’t want it anymore. Costco has a satisfaction guarantee, so it will refund your membership fee if you decide to cancel.

Top credit card to use at Costco (and everywhere 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, Visa, and Walmart. The Motley Fool has a disclosure policy.

“}]] Read More