Money Management

It can be extremely challenging to achieve a perfect 850, but it can also be unnecessary. Learn why you shouldn’t worry about not having a perfect score. [[{“value”:”

As long as you pay your bills on time, keep your credit card balances low, and only open new credit accounts when you need to, you’ll have a perfect credit score, right?

Unfortunately, this simply isn’t the case. While doing all of those things will almost certainly result in a very good credit score, it’s surprisingly difficult to achieve a perfect credit score.

The FICO credit scoring formula produces scores ranging from 300 to 850. However, just over 1.5% of U.S. consumers have a perfect 850, according to the latest data from major credit bureau Experian.

Why is it so hard to achieve a perfect credit score?

The short answer is that achieving the elusive 850 requires a “perfect storm” of information on your credit report. Unfortunately, since the FICO formula is a closely guarded secret, we don’t know exactly what that information is.

All we know are the five general categories of credit scoring information and their relative weights:

Payment history (35% of FICO® Score): Paying your bills on time and avoiding collections and adverse actions.Amounts you owe (30%): Keeping your balances low relative to your credit limits and initial loan balances.Length of credit history (15%): Time-related factors including the age of your oldest credit account, ages of individual accounts, and age of your average credit account.New credit (10%): Newly opened accounts, as well as credit applications you’ve recently submitted.Credit mix (10%): The variety of credit account types that appear on your credit report.

To be fair, just understanding these categories can be enough to get your score into the “exceptional” range. For example, you know that “amounts you owe” is an extremely important category, so you can make an effort to keep your credit balances very low relative to your credit card limits.

However, we don’t know exactly what credit utilization, combined with all of the other factors, will produce the combination of positive information needed for a perfect score. And that’s why it’s so rare.

Habits of people with perfect FICO® Scores

There are some characteristics of people with perfect credit scores that probably won’t surprise you. For example, the average person with an 850 FICO® Score has never had a delinquent credit account.

On the other hand, here are some statistics you might find surprising:

The average person with an 850 FICO® Score owes more than $3,000 on their credit cards and has about six active credit card accounts. However, this represents just 4% of their total available credit.In addition to nearly six traditional credit cards, the average consumer with a perfect credit score has about four retail (store) credit cards open.The average person with an 850 FICO® Score has a nearly $246,000 mortgage balance, $19,296 auto loan balance, and owes $17,545 on other loans.People with perfect scores tend to have long credit histories. Baby boomers and Generation X members (consumers about 44 years old and above) make up 92% of those with perfect scores.

The key takeaways are people with perfect scores keep their debts low and pay all their bills on time. And they use their credit, with both installment loans and credit cards.

Here’s the good news

One important thing to know is that other than for bragging rights, there really is no practical reason to pursue a perfect 850. In fact, with a score above 780, you should be able to qualify for the lowest interest rates and best credit offers lenders have available.

To give yourself a bit of cushion (since applying for credit can make your score go down a bit, temporarily), a score of about 800 could be worth aiming for — and this is far more achievable, as more than 20% of U.S. consumers are in this range.

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

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Costco’s store brand, Kirkland Signature, can help you save money on everything from socks to snacks. See our picks for the best Kirkland products this month. [[{“value”:”

When I was growing up, store-brand products were never “cool.” Store brands, also known as private label products, had a reputation for low quality, with no colorful logos or clever cartoon mascots.

But Costco has changed the game of private label. Many Costco members find that they actually prefer the distinctive selections of Costco’s store brand, called Kirkland Signature. Costco’s private label has acquired a surprising prestige that makes people want to reach for their credit cards.

One fun aspect of shopping at Costco is that you can often find the lowest prices and most intriguing discoveries from Kirkland Signature products — everything from snacks to clothes, from kitchen staples to over the counter medications. Here are a few picks for the best Kirkland Signature deals in September 2024.

(All deals were available for online shopping with prices shown for my local Costco warehouse in West Des Moines, Iowa, as of Sept. 5, 2024. Prices may vary by location.)

1. Kirkland Signature, Whole Dried Blueberries, 20 oz ($10.49)

Dried blueberries are a delicious, versatile superfood. You can mix these dried blueberries into your morning oatmeal, add them to your yogurt or smoothies, use them as an ingredient for pancakes or muffins, or just eat them out of the bag as a snack. Each little berry packs a surprising amount of sweet flavor.

2. Kirkland Signature Aller-Tec, 365 Tablets ($11.49)

Get a year’s worth of allergy relief for $11.49 with Kirkland Signature Aller-Tec (compare to the active ingredient in Zyrtec®). This price includes manufacturer’s savings of $3, valid through Sept. 22, 2024. Limit 10 per Costco member. While supplies last.

3. Kirkland Signature Organic Peanut Butter, 28 oz, 2-count ($12.99)

This Costco Kirkland brand organic peanut butter is a cheap source of protein. This is an excellent price for two 14-ounce jars of organic peanut butter, and the flavor is ideal for PB&J sandwiches, peanut butter smoothies, or just eating directly out of the jar with a spoon as a late-night snack.

4. Kirkland Signature Organic Pure Maple Syrup, 33.8 oz ($14.99)

Have you seen how expensive maple syrup is at the grocery store? This is one of the best prices I’ve ever seen for a whole liter (33.8 ounces) of organic 100% pure Grade A Amber Rich maple syrup. My children love to eat this syrup on their daily breakfast pancakes; on a per-ounce basis, this maple syrup is the most valuable thing I own.

5. Kirkland Signature Trail Mix, 4 lbs ($15.99)

Trail mix is a big part of my diet. Since I work a lot, I have an erratic schedule, and I’m bad at planning meals, so I often need to just eat a few quick handfuls of something with high protein content. This four-pound bag of trail mix contains raisins, peanuts, almonds, and M&Ms (milk chocolate and peanut varieties).

Pro tip: Want to liven up your trail mix? Stir in a few handfuls of Kirkland Signature Whole Dried Blueberries.

6. Kirkland Signature Ladies’ Extra Fine Merino Wool Blend Sock, 4-pair ($16.99)

Comedians sometimes joke about how when you start buying clothes at Costco, it means you’ve given up on life. First of all: ouch! And second of all: Costco has some great deals on clothes! I’ve bought a few pairs of well-made, comfortable, weather-resistant tech pants at Costco that are great for travel and hiking.

Ahem. The point is: This is a great deal on merino wool blend socks — four pairs for $16.99. That’s only $2.12 per sock. The socks come in blue or multipack color selections and get rave reviews: 4.7 stars from 444 Costco members.

7. Kirkland Signature, Thai Hom Mali Jasmine Rice, 25 lbs ($21.99)

Don’t assume that Costco grocery shopping is only for packaged snacks or processed foods. You can get must-have pantry staple items like this Thai Hom Mali Jasmine Rice. Want to cook Thai cuisine at home? Get this delicious, fragrant long-grain rice for authentic Thai curries and stir fries.

8. Kirkland Signature, Extra Virgin Italian Olive Oil, 2 L ($25.99)

This is a great deal on two liters of extra virgin Italian olive oil. My family uses this for everyday cooking, and it’s a delicious oil that stands up to the heat. This oil is first cold pressed with a traceable chain of Italian origin; you’ll be hard-pressed to find such authentic Italian olive oil for such a cheap price per liter at any other store.

9. Kirkland Signature 680 Thread Count Sheet Set ($79.99)

Costco is a great place to buy various things you need for your home. If you’ve recently bought a new bed or just want to freshen up your bedsheets, this 680 thread count sheet set could give you the luxury feel that you want at a reasonable price.

This sheet set is made from Pima cotton (grown in California) and comes with one fitted sheet, one flat sheet, and four pillowcases. The $79.99 price is for white queen-sized sheets, but other colors and sizes are available at higher prices.

10. Kirkland Signature 12-piece Non-Stick Cookware Set ($129.99)

Want to save money on your food budget? Investing in better cookware can help motivate you to cook at home more often. This Kirkland Signature non-stick cookware set is made of heavy gauge hard anodized aluminum with tempered glass lids. It includes three covered saucepans, one eight-quart covered stock pot, two skillets, and one five-quart covered sauté pan.

Bottom line

Costco’s Kirkland products can spruce up your home, restock your pantry, and revitalize your life in surprising ways. Even if you only bought Kirkland products, you could get a surprising amount of value to maximize your 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!

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Costco Wholesale and JPMorgan Chase. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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On Sept. 1, Costco’s membership fees increased. Keep reading why Costco is still worth the admission price. [[{“value”:”

With nearly 128 million cardholders worldwide, Costco is unquestionably a retail giant. What sets Costco apart from most competitors is that customers must pay for a membership before purchasing a box of cereal, a baby stroller, or a new television.

Since 2017, membership prices have ranged from $60 to $120 per year, but on Sept. 1, the warehouse mammoth increased its membership fees, capturing the attention of anyone watching their household budget. Here’s why it’s still worth the price of admission.

The membership fee increase

The last time Costco’s annual membership fees increased was in 2017. At the time, its Gold Star membership hit $60, and customers could purchase an Executive membership for $120. While much has been made of Costco hiking prices, Gold Star members will now pay $65 instead of $60, and Executive members will fork over $130 rather than $120.

Here’s how that shakes out over a one-year membership once you break the annual fee down into 52 weeks:

While Gold Star members were paying a little under $1.16 per week for their membership, they’ll now pay $1.25 weekly. That’s a weekly increase of $0.09.Executive members previously paid $2.31 per week. Their new weekly cost is $2.50, an increase of $0.19.

While every cent counts when you’re trying to save money, it’s doubtful that such a small increase will negatively impact your household budget.

Costco prices remain competitive

It was easy to become numb to the rapid inflation that began during the pandemic. While no one enjoyed it, tales of manufacturing shortages and supply chain issues helped explain why prices were spiking. As we approach five years since COVID-19 was first announced, prices have remained high.

The good news is that the Federal Reserve has managed to get the rate of inflation under 3%, and some grocery prices have begun a slow crawl downward. Still, they remain far too high for the average family.

And this is where spending an extra $0.09 or $0.19 per week on a Costco membership makes sense. It’s estimated that the average Gold Star member could save over $1,000 per year if they purchased their staples from Costco rather than a local grocery store.

It’s tough to complain about a small membership price hike when such savings are possible.

Continue to pick up your Costco favorites

Ask any Costco member about the products they routinely pick up at Costco, and they’ll likely tell you about several. Dropping a Costco membership over a $5 or $10 price increase means losing access to those favorites.

While you may be able to purchase the same products elsewhere, you could end up paying more for them. And even if you find an item for the same price or (gasp) less, you’ll miss out on picking up the bulk items you trust to save you money.

Whether you love shopping at Costco or would rather have a root canal than face the congested parking lot and crowded aisles, there’s no denying that strategic buyers manage to save money. That reason alone is enough to justify paying a bit more for 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!

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Dana George has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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