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Costco fans know that signing up for an annual membership usually means tons of savings on bulk items, discounts on gas, and plenty of unexpected good deals. By some estimates, you can save $1,000 in grocery shopping expenses with a Costco membership.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 just because most people save money with Costco doesn’t mean a membership is right for everyone. In fact, I recently let my Costco membership lapse because I wasn’t using it enough.Here are five signs a Costco membership just isn’t for you.1. You don’t buy Costco gasCostco gas can be significantly cheaper than the national average. The closest gas station near my home is charging $2.69 for a gallon of regular unleaded, while my local Costco store sells it for just $2.48.If I went to Costco every time I needed gas and filled up for the average of 489 gallons Americans use yearly, I’d save an estimated $102!But, it wasn’t very convenient for me to buy gas at Costco frequently because of the store location. My family only bought Costco gas once per month, if that, when making a Costco run. If you’ve found the same to be true for you, then even Costco’s steep discount on gas probably isn’t enough to make the cost of membership worth it.2. You’re not earning enough cash back rewardsThere are two tiers of Costco membership. The first is a Gold Star membership that costs just $65 annually and doesn’t include any cash back rewards. However, if you upgrade to an Executive membership (which costs $130 annually), you can earn up to 2% back on most in-store and online purchases.You can earn up to $1,250 back if you spend a total of $5,210 or more at Costco annually. But that means you’d have to spend at least $434 monthly to earn the maximum amount.While it’s a nice perk, you can certainly earn a higher percentage of cash back with a good credit credit card. Click here for our list of the best credit cards to use at Costco.3. You find great deals at local grocery storesInflation has wreaked havoc on many people’s grocery budgets, but there are still grocery stores where it’s relatively easy to keep costs low. My family regularly shops at Aldi and has found it to be one of the cheapest options around.Sure, you won’t get the same product selection as at Costco, but I like the simplicity of a smaller grocery store and knowing that I’m likely getting the lowest prices available. We pay about $2 for a dozen eggs! A recent comparison conducted by AARP found that Aldi was cheaper than both Walmart and Target.4. You’re overspending at the clubThe average Costco member spends an estimated $150 per trip at the store. Of course, it’s easy to spend much more if you come across some good deals.I’m a sucker for finding a discount, so when I spy something on sale, I’m tempted to buy it, even if I don’t actually need it. Costco knows this all too well, which is why it’s easy to overspend when browsing Costco aisles.The average American spent $150 in impulse purchases each month in 2023. If you add this to the average amount most Costco members spend, it means you could be doubling your Costco spending if all your impulse purchases occur at the store.Related: 1 in 5 Americans don’t have an emergency fund. A high-yield savings account could help you build one quickly. Click here to see our review of top-rated savings accounts.5. Your local Costco location is inconvenientWhile Costco tries to put its stores in high-traffic locations, your local store still may not be convenient for you. This was the case for me; our nearest Costco is located on the side of town I don’t travel to frequently, and the roads around it are jam-packed on a regular basis.In contrast, our Aldi store is just two minutes away, and we have another local grocery store just a few blocks away. If you find it difficult to fight the traffic just to get to Costco, a membership might not be a good fit for you.Don’t get me wrong — a Costco membership can be a great option for many people. I have friends who love their membership and shop at the store often. But if you’re not taking advantage of gas perks and cash back or you’re overspending at the store, it’s a good sign that a membership isn’t worth it for you.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.Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, Target, and Walmart. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Costco fans know that signing up for an annual membership usually means tons of savings on bulk items, discounts on gas, and plenty of unexpected good deals. By some estimates, you can save $1,000 in grocery shopping expenses with a Costco membership.

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 just because most people save money with Costco doesn’t mean a membership is right for everyone. In fact, I recently let my Costco membership lapse because I wasn’t using it enough.

Here are five signs a Costco membership just isn’t for you.

1. You don’t buy Costco gas

Costco gas can be significantly cheaper than the national average. The closest gas station near my home is charging $2.69 for a gallon of regular unleaded, while my local Costco store sells it for just $2.48.

If I went to Costco every time I needed gas and filled up for the average of 489 gallons Americans use yearly, I’d save an estimated $102!

But, it wasn’t very convenient for me to buy gas at Costco frequently because of the store location. My family only bought Costco gas once per month, if that, when making a Costco run. If you’ve found the same to be true for you, then even Costco’s steep discount on gas probably isn’t enough to make the cost of membership worth it.

2. You’re not earning enough cash back rewards

There are two tiers of Costco membership. The first is a Gold Star membership that costs just $65 annually and doesn’t include any cash back rewards. However, if you upgrade to an Executive membership (which costs $130 annually), you can earn up to 2% back on most in-store and online purchases.

You can earn up to $1,250 back if you spend a total of $5,210 or more at Costco annually. But that means you’d have to spend at least $434 monthly to earn the maximum amount.

While it’s a nice perk, you can certainly earn a higher percentage of cash back with a good credit credit card. Click here for our list of the best credit cards to use at Costco.

3. You find great deals at local grocery stores

Inflation has wreaked havoc on many people’s grocery budgets, but there are still grocery stores where it’s relatively easy to keep costs low. My family regularly shops at Aldi and has found it to be one of the cheapest options around.

Sure, you won’t get the same product selection as at Costco, but I like the simplicity of a smaller grocery store and knowing that I’m likely getting the lowest prices available. We pay about $2 for a dozen eggs! A recent comparison conducted by AARP found that Aldi was cheaper than both Walmart and Target.

4. You’re overspending at the club

The average Costco member spends an estimated $150 per trip at the store. Of course, it’s easy to spend much more if you come across some good deals.

I’m a sucker for finding a discount, so when I spy something on sale, I’m tempted to buy it, even if I don’t actually need it. Costco knows this all too well, which is why it’s easy to overspend when browsing Costco aisles.

The average American spent $150 in impulse purchases each month in 2023. If you add this to the average amount most Costco members spend, it means you could be doubling your Costco spending if all your impulse purchases occur at the store.

Related: 1 in 5 Americans don’t have an emergency fund. A high-yield savings account could help you build one quickly. Click here to see our review of top-rated savings accounts.

5. Your local Costco location is inconvenient

While Costco tries to put its stores in high-traffic locations, your local store still may not be convenient for you. This was the case for me; our nearest Costco is located on the side of town I don’t travel to frequently, and the roads around it are jam-packed on a regular basis.

In contrast, our Aldi store is just two minutes away, and we have another local grocery store just a few blocks away. If you find it difficult to fight the traffic just to get to Costco, a membership might not be a good fit for you.

Don’t get me wrong — a Costco membership can be a great option for many people. I have friends who love their membership and shop at the store often. But if you’re not taking advantage of gas perks and cash back or you’re overspending at the store, it’s a good sign that a membership isn’t worth it for you.

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.Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, Target, and Walmart. The Motley Fool has a disclosure policy.

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[[{“value”:”Image source: Upsplash/The Motley Fool
There’s a reason so many people are willing to spend money to walk through Costco’s doors. In exchange for the $65 you pay per year for a basic Gold Star membership or the $130 you pay for an Executive membership, you get to save money on groceries and household essentials. And in many cases, the savings you enjoy on those items will far surpass the cost of your annual membership.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 you should know that Costco has the right to revoke any membership at any time. If you make any of these moves, you risk getting yourself banned from the store.1. Canceling your membership close to its renewal dateCostco guarantees satisfaction with its memberships and will let you cancel at any time during the year for a refund. But if you cancel close to your membership renewal date so you’re effectively able to shop at Costco for a year for free, then you probably won’t be allowed to renew your membership anytime soon after that. At that point, you risk missing out on a world of savings. If you’re getting close to the one-year mark and realize you haven’t been shopping at Costco as often as you used to, don’t just cancel. Instead, think about the different ways you can maximize the benefits of shopping at Costco. You may not have as much of a need for bulk groceries if your children have recently moved out of the house, for example. But in that case, you might have more freedom to travel, so perhaps you can take advantage of Costco’s low-cost vacation packages.You should also remember that Costco sells a host of items, from apparel to electronics to home appliances. And if you use the right credit card at Costco, you can pile onto your savings. Click here for a list of the best credit cards for Costco.2. Returning things that are clearly no longer in sellable conditionCostco’s return policy is more than reasonable. You can pretty much bring back any item at any time for any reason with a few exceptions (like electronics, where your return window is limited to 90 days). But if you abuse Costco’s return policy by bringing back items that are clearly no longer in sellable condition, you might get yourself banned from the store.Say you buy a jacket for your child and they wear it once before claiming it’s uncomfortable. Even with the tags already removed, this may be a reasonable return if the jacket is in like-new condition when you bring it back.On the other hand, say you buy a rug that your children and pets stomp on all year long. If you then, after 12 months, attempt to return it all tattered and torn, Costco may not take kindly to that.3. Making an unreasonable number of returnsThere’s no specific number of Costco returns that will result in your membership being revoked. But if your returns get excessive, you run the risk of losing your Costco access.What’s excessive? Making two or three returns per month probably won’t do it, provided those returns are reasonable as per the point above. But making 12 returns per month might land you a spot on Costco’s blacklist, so be careful. Of course, if you’re worried because you’ve recently made a larger number of returns than usual, you could always head over to customer service at your local store and ask if it’s a problem. A Costco employee may reassure you that your returns are still within a reasonable limit. And if not, you’ll at least have a heads-up to scale back on returns for a few months to avoid getting yourself flagged.Losing access to Costco could deal your finances a major blow. Avoid these mistakes so that doesn’t happen.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”:”

There’s a reason so many people are willing to spend money to walk through Costco’s doors. In exchange for the $65 you pay per year for a basic Gold Star membership or the $130 you pay for an Executive membership, you get to save money on groceries and household essentials. And in many cases, the savings you enjoy on those items will far surpass the cost of your annual membership.

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 you should know that Costco has the right to revoke any membership at any time. If you make any of these moves, you risk getting yourself banned from the store.

1. Canceling your membership close to its renewal date

Costco guarantees satisfaction with its memberships and will let you cancel at any time during the year for a refund. But if you cancel close to your membership renewal date so you’re effectively able to shop at Costco for a year for free, then you probably won’t be allowed to renew your membership anytime soon after that.

At that point, you risk missing out on a world of savings. If you’re getting close to the one-year mark and realize you haven’t been shopping at Costco as often as you used to, don’t just cancel. Instead, think about the different ways you can maximize the benefits of shopping at Costco.

You may not have as much of a need for bulk groceries if your children have recently moved out of the house, for example. But in that case, you might have more freedom to travel, so perhaps you can take advantage of Costco’s low-cost vacation packages.

You should also remember that Costco sells a host of items, from apparel to electronics to home appliances. And if you use the right credit card at Costco, you can pile onto your savings. Click here for a list of the best credit cards for Costco.

2. Returning things that are clearly no longer in sellable condition

Costco’s return policy is more than reasonable. You can pretty much bring back any item at any time for any reason with a few exceptions (like electronics, where your return window is limited to 90 days). But if you abuse Costco’s return policy by bringing back items that are clearly no longer in sellable condition, you might get yourself banned from the store.

Say you buy a jacket for your child and they wear it once before claiming it’s uncomfortable. Even with the tags already removed, this may be a reasonable return if the jacket is in like-new condition when you bring it back.

On the other hand, say you buy a rug that your children and pets stomp on all year long. If you then, after 12 months, attempt to return it all tattered and torn, Costco may not take kindly to that.

3. Making an unreasonable number of returns

There’s no specific number of Costco returns that will result in your membership being revoked. But if your returns get excessive, you run the risk of losing your Costco access.

What’s excessive? Making two or three returns per month probably won’t do it, provided those returns are reasonable as per the point above. But making 12 returns per month might land you a spot on Costco’s blacklist, so be careful.

Of course, if you’re worried because you’ve recently made a larger number of returns than usual, you could always head over to customer service at your local store and ask if it’s a problem. A Costco employee may reassure you that your returns are still within a reasonable limit. And if not, you’ll at least have a heads-up to scale back on returns for a few months to avoid getting yourself flagged.

Losing access to Costco could deal your finances a major blow. Avoid these mistakes so that doesn’t happen.

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: Getty Images
When the Federal Reserve Board met in September and decided to start lowering the federal funds rate, it signaled a potential beginning to lower interest rates across the board — eventually. Although the federal funds rate does not directly impact mortgage rates, it does influence them, and with one more meeting coming this year, the chances that mortgage rates will be much lower in 2025 is nearly 100%.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. That’s why it’s time to plan now — what will you do when they come? There are lots of ways to take advantage of those rate cuts, all of which can either save or make you money. Let’s walk through some of the best ways to take advantage of 2025’s lower interest rates so you can go ahead and start planning.1. Refinance your mortgageLet’s start with the obvious, because if the federal funds rate drops a whole percentage point in 2024, as the CME FedWatch tool predicts it will, you very well may do yourself a world of financial good to go ahead and refinance any mortgages you’ve gotten in the last couple of years.The average rate for the 30-year fixed-rate mortgage peaked at 7.79% in October 2023, but even in fall 2022, it touched 7% more than once. If you bought your house in either of those windows, you’re especially well positioned to save a bundle with a refinance in 2025 when rates are expected to drop to a solid 6.0% or less.The difference in principal and interest payments on a $350,000 mortgage when going from 7.0% to 6.0% is about $230 per month, or $2,760 per year. That’s not anything to sneeze at. Now is a great time to contact your favorite refinance lender — or check out our curated list here — to get on its radar. A lender will work with you to get a refinance that makes sense for your situation, even if it takes a few months to reach a rate that’s beneficial.2. Consider a second mortgageIf you’re like me and are holding on to a super low interest rate from days gone by, you have probably felt kind of stuck when it comes to doing major upgrades that may require a second mortgage or HELOC. Every time I check those rates and the payment that would go with the amount of big stuff I want to do all at once, I am blown away by how close it is to my current mortgage payment for so much less money.The good news is that as rates drop, those second mortgages are going to start making more sense for us. A lot of us have home equity, especially if we bought before COVID-19, we just can’t make the numbers work, even if, like in my case, it would translate into significant energy savings every month.Just like with refinance mortgages, this is a good time to start shopping around, since you want to be ready when rates drop into the range you’re shopping for. That might mean you have to boost your credit or pay down some debt, which can take time.3. Use your equity to invest in real estateReal estate you can lease out, be it another home, a duplex, or even a small accessory dwelling unit (ADU) you can rent as a short-term rental can be a good income stream if you’re made of the right stuff to be a landlord. If you’ve owned your home for five years or more, you’re likely to have plenty of equity to borrow against as a down payment on a rental property or to just completely build an ADU from scratch.The thing with rental units is that you need cash flow, so the lower the interest rate, the better off you’ll be — and the more money you can make. You have to be able to pay for the water heater when it breaks or to replace the air conditioner when it’s on the fritz, so paying too much in interest isn’t helping you turn that property into an income stream. But with lower interest rates come bigger possibilities.If you’ve always wanted to be a landlord, or even if you just want to build an apartment for your college kid to rent, keep an eye on mortgage rate updates on this page, so you know when it’s time to make a move.Lower interest rates are coming — get readyLower interest rates are on their way, though it’s hard to predict when they’re going to actually be here. I’d expect to see things start to move after the holidays, as demand for mortgages increases seasonally. You can get ready for them today by checking your credit score, paying down credit card debt, and talking to a lender to see what else you may need to do to be the best candidate possible.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”:”

When the Federal Reserve Board met in September and decided to start lowering the federal funds rate, it signaled a potential beginning to lower interest rates across the board — eventually. Although the federal funds rate does not directly impact mortgage rates, it does influence them, and with one more meeting coming this year, the chances that mortgage rates will be much lower in 2025 is nearly 100%.

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.

That’s why it’s time to plan now — what will you do when they come? There are lots of ways to take advantage of those rate cuts, all of which can either save or make you money. Let’s walk through some of the best ways to take advantage of 2025’s lower interest rates so you can go ahead and start planning.

1. Refinance your mortgage

Let’s start with the obvious, because if the federal funds rate drops a whole percentage point in 2024, as the CME FedWatch tool predicts it will, you very well may do yourself a world of financial good to go ahead and refinance any mortgages you’ve gotten in the last couple of years.

The average rate for the 30-year fixed-rate mortgage peaked at 7.79% in October 2023, but even in fall 2022, it touched 7% more than once. If you bought your house in either of those windows, you’re especially well positioned to save a bundle with a refinance in 2025 when rates are expected to drop to a solid 6.0% or less.

The difference in principal and interest payments on a $350,000 mortgage when going from 7.0% to 6.0% is about $230 per month, or $2,760 per year. That’s not anything to sneeze at. Now is a great time to contact your favorite refinance lender — or check out our curated list here — to get on its radar. A lender will work with you to get a refinance that makes sense for your situation, even if it takes a few months to reach a rate that’s beneficial.

2. Consider a second mortgage

If you’re like me and are holding on to a super low interest rate from days gone by, you have probably felt kind of stuck when it comes to doing major upgrades that may require a second mortgage or HELOC. Every time I check those rates and the payment that would go with the amount of big stuff I want to do all at once, I am blown away by how close it is to my current mortgage payment for so much less money.

The good news is that as rates drop, those second mortgages are going to start making more sense for us. A lot of us have home equity, especially if we bought before COVID-19, we just can’t make the numbers work, even if, like in my case, it would translate into significant energy savings every month.

Just like with refinance mortgages, this is a good time to start shopping around, since you want to be ready when rates drop into the range you’re shopping for. That might mean you have to boost your credit or pay down some debt, which can take time.

3. Use your equity to invest in real estate

Real estate you can lease out, be it another home, a duplex, or even a small accessory dwelling unit (ADU) you can rent as a short-term rental can be a good income stream if you’re made of the right stuff to be a landlord. If you’ve owned your home for five years or more, you’re likely to have plenty of equity to borrow against as a down payment on a rental property or to just completely build an ADU from scratch.

The thing with rental units is that you need cash flow, so the lower the interest rate, the better off you’ll be — and the more money you can make. You have to be able to pay for the water heater when it breaks or to replace the air conditioner when it’s on the fritz, so paying too much in interest isn’t helping you turn that property into an income stream. But with lower interest rates come bigger possibilities.

If you’ve always wanted to be a landlord, or even if you just want to build an apartment for your college kid to rent, keep an eye on mortgage rate updates on this page, so you know when it’s time to make a move.

Lower interest rates are coming — get ready

Lower interest rates are on their way, though it’s hard to predict when they’re going to actually be here. I’d expect to see things start to move after the holidays, as demand for mortgages increases seasonally. You can get ready for them today by checking your credit score, paying down credit card debt, and talking to a lender to see what else you may need to do to be the best candidate possible.

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: Upsplash/The Motley Fool
If you’re a big fan of shopping at Costco but sometimes question the wisdom of spending money on membership renewal, we have a few ideas to help you cover the cost and maximize your membership.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!Pay with rewards from a cash back cardThe only credit card type Costco accepts in its warehouses is Visa. However, that shouldn’t hold you back. There are plenty of great Visa card options out there. Some Visa cards offer cash back on every purchase. Here’s how using a cash back card at Costco can put a little extra in your bank account each month:You save by paying less for the items you need at Costco.You save even more by earning money back on your purchases.Imagine the card you use daily gives you an average of 3% back, and you use the card to cover $2,500 in monthly expenses. That’s $75 in cash back each month. You’re cash ahead as long as you pay the card off in full each month before a new billing cycle begins.Here’s how long it would take you to earn enough cash back to cover the cost of membership:Membership TypeAnnual Membership costMonths Until BreakevenGold Star$651 monthExecutive$1302 monthsData source: Costco, and author’s calculations.If you’re looking for a Visa card for Costco, click here for our favorites. While none of them carries an annual fee, they each reward you for shopping.Use a Costco Shop CardA Costco Shop Card is a gift card that can be redeemed in any Costco store in the U.S., Canada, or Puerto Rico. If you prefer, you can use it instead online at Costco.com or Costco.ca. Costco Shop Cards can be used to pay for merchandise or cover the cost of your annual membership.Costco sometimes offers a Shop Card when you purchase a membership. However, you can also earn a Shop Card in other ways. For example, you’ll receive a Shop Card worth 10% of the amount you spend on flooring and carpet from Costco. Or, if you purchase garage doors, you’ll earn a Shop Card worth 15% of what you pay. In short, if you have any home improvement projects coming up, don’t forget to check out Costco while price shopping.Let’s say you spend $3,000 on new kitchen countertops. Earning a Shop Card worth 10% back is like receiving $300, more than enough to pay for your annual membership several times over.Spring for an Executive membershipAt $130, an Executive membership costs twice as much as a Gold Star membership. However, you may just find that the cash back benefits more than make up for the higher price.Executive members earn 2% back on eligible Costco and Costco Travel purchases and can earn as much as $1,250 back annually. For example, if you booked a $2,500 trip through Costco Travel and spent an average of $333.33 monthly on eligible Costco purchases, you will have spent a total of $6,500. That $6,500 expenditure automatically earns you $130 back — just enough to cover the cost of an Executive membership.There are many businesses, including credit card companies, vying for your business. One way they do that is by sweetening the pot with cash back. And you can make the most of the cash back by purchasing a membership that will save you even more money on the things you need. As you undoubtedly know, it pays to play it smart with your personal finances.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.Dana George has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Visa. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

If you’re a big fan of shopping at Costco but sometimes question the wisdom of spending money on membership renewal, we have a few ideas to help you cover the cost and maximize your membership.

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!

Pay with rewards from a cash back card

The only credit card type Costco accepts in its warehouses is Visa. However, that shouldn’t hold you back. There are plenty of great Visa card options out there. Some Visa cards offer cash back on every purchase. Here’s how using a cash back card at Costco can put a little extra in your bank account each month:

You save by paying less for the items you need at Costco.You save even more by earning money back on your purchases.

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

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

If you’re looking for a Visa card for Costco, click here for our favorites. While none of them carries an annual fee, they each reward you for shopping.

Use a Costco Shop Card

A Costco Shop Card is a gift card that can be redeemed in any Costco store in the U.S., Canada, or Puerto Rico. If you prefer, you can use it instead online at Costco.com or Costco.ca. Costco Shop Cards can be used to pay for merchandise or cover the cost of your annual membership.

Costco sometimes offers a Shop Card when you purchase a membership. However, you can also earn a Shop Card in other ways. For example, you’ll receive a Shop Card worth 10% of the amount you spend on flooring and carpet from Costco. Or, if you purchase garage doors, you’ll earn a Shop Card worth 15% of what you pay. In short, if you have any home improvement projects coming up, don’t forget to check out Costco while price shopping.

Let’s say you spend $3,000 on new kitchen countertops. Earning a Shop Card worth 10% back is like receiving $300, more than enough to pay for your annual membership several times over.

Spring for an Executive membership

At $130, an Executive membership costs twice as much as a Gold Star membership. However, you may just find that the cash back benefits more than make up for the higher price.

Executive members earn 2% back on eligible Costco and Costco Travel purchases and can earn as much as $1,250 back annually. For example, if you booked a $2,500 trip through Costco Travel and spent an average of $333.33 monthly on eligible Costco purchases, you will have spent a total of $6,500. That $6,500 expenditure automatically earns you $130 back — just enough to cover the cost of an Executive membership.

There are many businesses, including credit card companies, vying for your business. One way they do that is by sweetening the pot with cash back. And you can make the most of the cash back by purchasing a membership that will save you even more money on the things you need. As you undoubtedly know, it pays to play it smart with your personal finances.

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

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[[{“value”:”Image source: Getty Images
The decision to join Costco may be a no-brainer for you if you have a large household to feed and maintain. The money you shell out for a membership may be worth it when you consider the savings you get to enjoy on these essential purchases all year round.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 one decision that may be a little tougher is whether you should stick with Costco’s basic membership at $65 per year, or upgrade to the Executive membership for $130 per year. Although the Executive membership costs double, it gives you the benefit of 2% cash back on your purchases.If you’ve been sticking with the basic membership at Costco but plan to shop there a lot for the holidays, then now’s a good time to upgrade to an Executive membership. It may put extra money in your pocket.Why it pays to upgrade to a Costco Executive membershipSome people spend well over $1,000 on the holidays between gifts, decorations, and extra food. If you expect to shell out a decent chunk of money on holiday purchases, then upgrading to Costco’s Executive membership now could be a smart move.It takes $3,250 in Costco spending in the course of a year to make back the $65 it costs to upgrade to an Executive membership. Once you’ve spent even $1 more than that, you’re ahead financially.Perhaps you typically shop at Costco twice a month and spend about $100 per visit. That puts your yearly spending at $2,400. But if you plan to buy a boatload of holiday gifts from Costco, plus lights and a Christmas tree, then you might easily exceed the $3,250 mark in the course of 12 months.Similarly, if you’re planning to take advantage of Costco’s Black Friday sales by upgrading your TV or buying a new laptop, a single large purchase like that could push your annual spending beyond $3,250. In that case, the Executive membership pays off, despite the higher cost.There’s no risk involved thanks to Costco’s guaranteeIf you don’t like the idea of paying for Costco’s Executive membership, you can still earn cash back on your purchases by using the right credit card at the store. Click here for a list of the best credit cards for Costco shoppers.But remember, with Costco’s Executive membership, you can double up on cash back by scoring some from your membership itself and even more from your credit card. So it’s worth considering an upgrade if you think you’ll make a decent amount of holiday purchases at Costco.Another important thing to know is that with Costco’s Executive membership, you’re basically guaranteed to make back your $65 upgrade fee. If you don’t make it back, Costco will let you downgrade to a basic membership and refund you what your Executive membership cost.In other words, with an Executive membership, there’s truly no financial risk involved. And you may be surprised at how many holiday items you can scoop up at Costco, thereby making the Executive membership upgrade more than worth it.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”:”

The decision to join Costco may be a no-brainer for you if you have a large household to feed and maintain. The money you shell out for a membership may be worth it when you consider the savings you get to enjoy on these essential purchases all year round.

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 one decision that may be a little tougher is whether you should stick with Costco’s basic membership at $65 per year, or upgrade to the Executive membership for $130 per year. Although the Executive membership costs double, it gives you the benefit of 2% cash back on your purchases.

If you’ve been sticking with the basic membership at Costco but plan to shop there a lot for the holidays, then now’s a good time to upgrade to an Executive membership. It may put extra money in your pocket.

Why it pays to upgrade to a Costco Executive membership

Some people spend well over $1,000 on the holidays between gifts, decorations, and extra food. If you expect to shell out a decent chunk of money on holiday purchases, then upgrading to Costco’s Executive membership now could be a smart move.

It takes $3,250 in Costco spending in the course of a year to make back the $65 it costs to upgrade to an Executive membership. Once you’ve spent even $1 more than that, you’re ahead financially.

Perhaps you typically shop at Costco twice a month and spend about $100 per visit. That puts your yearly spending at $2,400. But if you plan to buy a boatload of holiday gifts from Costco, plus lights and a Christmas tree, then you might easily exceed the $3,250 mark in the course of 12 months.

Similarly, if you’re planning to take advantage of Costco’s Black Friday sales by upgrading your TV or buying a new laptop, a single large purchase like that could push your annual spending beyond $3,250. In that case, the Executive membership pays off, despite the higher cost.

There’s no risk involved thanks to Costco’s guarantee

If you don’t like the idea of paying for Costco’s Executive membership, you can still earn cash back on your purchases by using the right credit card at the store. Click here for a list of the best credit cards for Costco shoppers.

But remember, with Costco’s Executive membership, you can double up on cash back by scoring some from your membership itself and even more from your credit card. So it’s worth considering an upgrade if you think you’ll make a decent amount of holiday purchases at Costco.

Another important thing to know is that with Costco’s Executive membership, you’re basically guaranteed to make back your $65 upgrade fee. If you don’t make it back, Costco will let you downgrade to a basic membership and refund you what your Executive membership cost.

In other words, with an Executive membership, there’s truly no financial risk involved. And you may be surprised at how many holiday items you can scoop up at Costco, thereby making the Executive membership upgrade more than worth it.

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
Many financial advisors will tell you that it’s a bad move to buy a new car, and to be fair, they’ve got a point. The fastest depreciation of a vehicle’s value occurs in the first couple of years, and you definitely get more for your money if you buy a car that is a few years old. However, there’s more to any life decision than just considering what is financially the best move.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. For me, I prefer the peace of mind that comes with a new car. I get a factory warranty on the vehicle and I don’t have to worry about whether a previous owner took good care of it or drove it aggressively. Plus, I like to keep the same vehicle for a long time, so I’m not that concerned about how the retail or trade-in value evolves over time.I bought a new Ford Expedition a few years ago. For a new car, I did it in a very financial advisor-ish way, as my car was a leftover from the previous model year and I got a substantial discount because the dealership wanted to get rid of it. Even so, it was too much to pay in cash, and since this was the era of ultra-low-interest financing, I got a car loan with a sub-4% interest rate.Well, earlier in 2024 I finished paying the loan off (more than a year early). And as soon as the “paid in full” designation hit my credit report, my FICO® Score dropped by about 10 points.Paying off a vehicle is a good time to see if you can lower your car insurance payments. Click here to check out if our top auto insurance companies could save you money.Why paying off a loan can make your credit score fallNow, it might sound counterintuitive that a paid-off car loan (which is clearly an example of responsible credit behavior) would adversely affect your score. But if we take a closer look at how the FICO scoring formula works, it makes a lot of sense.One key point to know before we go on is that a paid-off loan is officially considered to be a closed account. And because of this, it can have some negative implications on your credit score. You may have heard that closing an older credit card can drop your credit score. The same thing applies here.The reason primarily has to do with the “amounts owed” category of the FICO formula, which makes up 30% of your credit score.Instead of focusing on the actual dollar amounts you owe to creditors, it considers how much you owe on your credit cards relative to your total credit limit and the amount you owe on installment loans relative to the original balance.In other words, a car loan that is 95% paid off can be a rather positive factor in your FICO® Score, especially if it has a flawless payment history. On the other hand, once you’ve made the last payment, it shows up as a closed account and is no longer a positive influence on your score.In addition to the amounts owed category, there are two other ways paying off my car loan may have impacted my credit scoreLength of credit history (15% of my score): This category considers time-related factors, such as the age of your credit accounts. Because my car loan had been established for several years and is the older of two non-mortgage installment loans on my credit report, it could have affected this area of the scoring formula.Credit mix (10% of my score): In a nutshell, lenders want to see that you can be responsible with a variety of different forms of credit, so the FICO formula rewards a diverse mix of accounts. By removing my only auto loan, it could have made my credit mix less favorable.I didn’t mind the dropEven though my FICO® Score fell by about 10 points in response to paying off my car loan, I wasn’t bothered by it. For one thing, I’ve been a financial planner for a while now, and am very familiar with how actions like this factor into the credit scoring formula. And my score was far enough into the realm of excellent credit that it remained there, even after a 10-point decline.More importantly, a minor drop in my credit score is nothing compared to the elimination of that monthly payment from my budget, the fact that my car title is physically in my possession, and that by paying the loan off early, I’m saving about $1,000 in interest.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”:”

Many financial advisors will tell you that it’s a bad move to buy a new car, and to be fair, they’ve got a point. The fastest depreciation of a vehicle’s value occurs in the first couple of years, and you definitely get more for your money if you buy a car that is a few years old. However, there’s more to any life decision than just considering what is financially the best move.

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.

For me, I prefer the peace of mind that comes with a new car. I get a factory warranty on the vehicle and I don’t have to worry about whether a previous owner took good care of it or drove it aggressively. Plus, I like to keep the same vehicle for a long time, so I’m not that concerned about how the retail or trade-in value evolves over time.

I bought a new Ford Expedition a few years ago. For a new car, I did it in a very financial advisor-ish way, as my car was a leftover from the previous model year and I got a substantial discount because the dealership wanted to get rid of it. Even so, it was too much to pay in cash, and since this was the era of ultra-low-interest financing, I got a car loan with a sub-4% interest rate.

Well, earlier in 2024 I finished paying the loan off (more than a year early). And as soon as the “paid in full” designation hit my credit report, my FICO® Score dropped by about 10 points.

Paying off a vehicle is a good time to see if you can lower your car insurance payments. Click here to check out if our top auto insurance companies could save you money.

Why paying off a loan can make your credit score fall

Now, it might sound counterintuitive that a paid-off car loan (which is clearly an example of responsible credit behavior) would adversely affect your score. But if we take a closer look at how the FICO scoring formula works, it makes a lot of sense.

One key point to know before we go on is that a paid-off loan is officially considered to be a closed account. And because of this, it can have some negative implications on your credit score. You may have heard that closing an older credit card can drop your credit score. The same thing applies here.

The reason primarily has to do with the “amounts owed” category of the FICO formula, which makes up 30% of your credit score.

Instead of focusing on the actual dollar amounts you owe to creditors, it considers how much you owe on your credit cards relative to your total credit limit and the amount you owe on installment loans relative to the original balance.

In other words, a car loan that is 95% paid off can be a rather positive factor in your FICO® Score, especially if it has a flawless payment history. On the other hand, once you’ve made the last payment, it shows up as a closed account and is no longer a positive influence on your score.

In addition to the amounts owed category, there are two other ways paying off my car loan may have impacted my credit score

Length of credit history (15% of my score): This category considers time-related factors, such as the age of your credit accounts. Because my car loan had been established for several years and is the older of two non-mortgage installment loans on my credit report, it could have affected this area of the scoring formula.

Credit mix (10% of my score): In a nutshell, lenders want to see that you can be responsible with a variety of different forms of credit, so the FICO formula rewards a diverse mix of accounts. By removing my only auto loan, it could have made my credit mix less favorable.

I didn’t mind the drop

Even though my FICO® Score fell by about 10 points in response to paying off my car loan, I wasn’t bothered by it. For one thing, I’ve been a financial planner for a while now, and am very familiar with how actions like this factor into the credit scoring formula. And my score was far enough into the realm of excellent credit that it remained there, even after a 10-point decline.

More importantly, a minor drop in my credit score is nothing compared to the elimination of that monthly payment from my budget, the fact that my car title is physically in my possession, and that by paying the loan off early, I’m saving about $1,000 in interest.

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