Money Management

Costco has been taking steps to encourage people to buy memberships. But is its latest move benefitting anyone? Keep reading to find out. [[{“value”:”

Costco has a business model that differs greatly from that of other retailers. Most stores make their money by selling goods to customers. Costco does that, but it also makes a lot of its money by selling memberships.

Currently, members pay $60 a year for a Gold Star membership or $120 a year for an Executive membership that gives them 2% cash back on their purchases. Come September 1, these prices are rising to $65 and $130, respectively.

Because Costco gets so much of its revenue from membership fees, it wants to encourage non-members to join. And it’s taken different steps to encourage that this year.

Costco’s new entry policy

Earlier in 2024, Costco began cracking down on food court access for non-members. So now, those famous $1.50 hot dog and soda combos are only available to paying members.

Costco is also placing membership card scanners at the entryway of its stores in a growing number of locations. Members will have to scan their cards rather than just flash them at a greeter before being allowed to enter to shop.

The idea behind this change is to make sure non-members aren’t sneaking in. But there’s a question about whether this strategy will benefit Costco and the people who pay to shop there.

A potential problem

Costco’s membership card scanners make sense in theory. If you try to sneak in without a membership card, you’ll be stopped in your tracks. But there’s already a system in place to prevent non-members from making purchases. If you don’t have a membership card, you won’t be allowed to check out with a cart full of stuff. It’s that simple.

So all Costco is really doing is cutting people off at the front of the store instead of in the checkout area. You can argue this might result in shorter checkout lines. But it also has the potential to cause massive bottlenecks in the front of the store.

If you’ve ever walked into a Costco store on a weekend, you’ve probably noticed that it tends to be jam-packed. So much so that even if you’re willing to take the farthest available parking spot in the lot, there’s still a wait to ditch your car.

The problem is that if too many people need to scan their cards at once, or a given scanner glitches or gives someone trouble, it could result in a long wait and a lot of angry people.

How to avoid long lines and crowds at Costco

Understandably, Costco doesn’t want non-members to gain free access to the store. But it actually already allows that because paying members can bring a guest. So it’s not clear whether these new scanners are necessary. And the fear is that they might cause even more congestion.

If you don’t like the idea of getting stuck in a line just to enter your local Costco, you may want to change your approach to shopping there. First, consider avoiding Costco on weekends at all costs. You’re better off making an after-work trip than subjecting yourself to the torture that is visiting Costco on a Saturday or Sunday.

Next, if your schedule is flexible, try to get to Costco right when it opens. Better yet, arrive a few minutes ahead of that time in case you’re allowed in the door a touch early.

Some Costco members try to go to the store at a time when there’s likely to be a wide selection of free samples, so they’ll avoid the earliest store hours. If you’re willing to forgo that cube of cheese or bite of granola bar, you can potentially avoid a lot of people, too.

Finally, don’t hesitate to give yourself the occasional break from Costco in the form of an online order. Sure, Costco’s in-store prices are generally better than the ones you’ll find online. But if you’re desperate for a break, placing the occasional online order is not the end of the world. And besides, what you pay in slightly higher prices, you might gain in not having to drive to Costco and use gas in the process.

Top credit card to use at Costco (and everywhere else!)

If you’re shopping with a debit card, you could be missing out on hundreds or even thousands of dollars each year. These versatile credit cards offer huge rewards everywhere, including Costco, and are rated the best cards of 2024 by our experts because they offer hefty sign-up bonuses and outstanding cash rewards. Plus, you’ll save on credit card interest because all of these recommendations include a competitive 0% interest period.

Click here to read our expert recommendations for free!

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

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One little three-digit number has a big impact on your finances — your credit score. Read on to see how (and how to boost yours). [[{“value”:”

You probably don’t think much about your credit score in your daily life — but it can have a real impact on more than just the credit cards you have in your wallet. Credit scores typically range from 300 to 850, and folks with a FICO® Score of at least 670 are considered to have good credit.

Here’s a closer look at how having a higher credit score can save you money and make your life easier.

More than you may realize

How much does your credit score matter? Here’s where it has an impact.

Lower interest rates

I put the most obvious benefit of good credit first. If you have a higher credit score, you’ll pay less to borrow money. Folks with good credit are more likely to qualify for the best credit cards, many of which come with long 0% intro APR periods that will let you finance a big purchase over a year (or longer) with no interest.

You’ll be able to finance a car or take out a personal loan with a lower interest rate. And you’ll even be able to buy a home for less money: You’re more likely to qualify for a lower rate, and it may not give a mortgage lender as much pause if you can’t make a 20% down payment. (You’ll pay for private mortgage insurance if you pay less than 20% down, but a lower down payment means less upfront cost to buy a house.)

Speaking of mortgages, I just got one with a credit score over 800, and while I still pay more than I wanted thanks to higher rates overall, my rate was almost 1 percentage point less than the average at that time. According to myFICO, someone with a credit score of 800 stands to pay more than $300 less per month on a $300,000 mortgage than someone with a score of just 620 (the minimum for a conventional loan) as of this writing.

Cheaper insurance

Want to pay less for home or auto insurance? Good credit gets you this, too. Rightly or wrongly, if your credit history shows that you are responsible with borrowed money, insurers may take it as a sign that you’re less likely to drive recklessly and file insurance claims. There’s only a handful of states where insurers are restricted in their use of your credit in setting rates.

Easier to get a lease

Want to rent a home? If you rent from a big company (as opposed to a landlord who owns a few rental properties), the odds are good you’ll need to provide a Social Security number on a rental application and undergo a background and credit check. Stronger credit can mean the difference between “Sorry, no thanks,” and “When can you move in?”

How can you improve your credit score?

When’s the last time you checked your credit score? It’s a good idea to do so every so often, especially before you apply to borrow money. You likely have access to yours via a bank or credit card company you already do business with; log into your account to see. And if your score is lower than you’d like, here are a few ways to bump it up and reap the benefits listed above:

Pay all your bills on time. Payment history is the biggest piece (35%) of your FICO® Score, so paying your creditors on time every month really helps your credit score.Pay down debt if you can. Carrying a credit card balance is expensive, and if you’re carrying a higher percentage of your available credit than 30%, you could see a lower score as a result. Try to pay down some of what you owe.Check your credit report for errors. You can access your credit report for free at AnnualCreditReport.com. If you spot errors, like a delinquent account that was actually closed in good standing, you can dispute them with the credit bureau that issued the report, boosting your credit score.

Your credit score might seem like a silly three-digit number, but improving it can improve your life and finances in tangible ways. Check your score today and make a commitment to boost it.

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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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Costco sells high-quality diamond engagement rings at a good price. Learn if it’s worth buying yours at Costco. [[{“value”:”

When you think of where to buy your engagement ring, you might think of Zales, Tiffany & Co., or Blue Nile. But if you’ve ever walked past the diamond counters at a Costco warehouse, you might be wondering how Costco’s prices compare to these other traditional merchants — and if the quality of its engagement rings matches theirs.

At a glance, Costco does offer decent prices on high-quality engagement rings. But it doesn’t have the widest selection of styles, nor does it allow you to customize or design your own ring. Costco also doesn’t offer cleaning or repair services for rings purchased there, perks most jewelry stores have.

Whether you’re about to drop down on one knee or do as I did and nervously let the ring fall on the table, let’s look at Costco’s engagement rings and see if it’s worth buying yours there.

Costco’s diamond engagement rings meet high standards

Costco uses the evaluation standards established by the Gemological Institute of America (GIA) to grade its diamonds. These standards — known as the 4Cs — assess a diamond’s color, clarity, cut, and carat weight to determine its quality and value.

We don’t have to get into the nitty-gritty of these 4Cs (each has its own scale, system, and terminology). But it’s worth noting that Costco guarantees that its diamonds meet standards of excellence for each one. For example, its diamonds have a cut grade of Good to Excellent, while its color is guaranteed to be “I” or better, where D is the best color and Z is the worst.

Costco’s diamonds are also untreated, meaning they haven’t undergone any artificial enhancement to improve their appearance. Though treated diamonds can offer a range of fancy colors and clarities at a much lower price, the treatment can affect its value and durability. An untreated diamond can potentially last longer and have a higher resale value.

You can’t customize your engagement ring, but you have some ring options

Costco doesn’t offer many of the services that a traditional jeweler does, such as free resizings, cleanings, and in-house repairs. It also won’t customize your engagement ring. So if you like the diamond in one ring but prefer the style of another, Costco won’t create a one-of-a-kind ring to match your preferences.

That said, it does have a variety of rings to choose from. Its website lists more than 200 engagement rings with six shapes (emerald, round, oval, cushion, princess, and pear), four metals (platinum, yellow gold, white gold, and two-tone), and six styles (solitaire, bridal, one-of-a-kind, halo, multi-stone, and three-stone). Meanwhile, Zales has almost 5,500 engagement rings on its website with 11 shapes and four styles.

As far as price goes, you can buy an engagement ring at Costco for as low as $500 or as high as $300,000 or more. But while Costco only has a few rings under $1,000, Zales has hundreds of them. The quality may not be as high, but the price could fit your budget better.

RELATED: Best Credit Cards for Costco

The verdict: Should you buy your engagement ring at Costco?

If there’s one thing Costco’s engagement rings have going for them, it’s the standards of excellence. When you buy an engagement ring at Costco, you can rest assured that it’s a high-quality ring.

That said, Costco isn’t a jeweler and doesn’t offer the lifetime services you’d get from a traditional jewelry store. While it sells some unique rings, it can’t customize one to your preferences, nor will it offer any post-purchase services. If you’d rather buy your ring from an artisan who will help you maintain it long after you’ve purchased it, you might be better off going somewhere else.

Of course, if you buy your engagement ring from Costco and it doesn’t meet your future spouse’s standards, you can always take it back for a full refund. Just keep in mind that diamonds of 1.00 carat or larger must have all original paperwork. This might give you some peace of mind, knowing you can always take the ring back to Costco if you find something else. Or worse — your special someone says no!

Top credit card to use at Costco (and everywhere else!)

If you’re shopping with a debit card, you could be missing out on hundreds or even thousands of dollars each year. These versatile credit cards offer huge rewards everywhere, including Costco, and are rated the best cards of 2024 by our experts because they offer hefty sign-up bonuses and outstanding cash rewards. Plus, you’ll save on credit card interest because all of these recommendations include a competitive 0% interest period.

Click here to read our expert recommendations for free!

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 positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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An outstanding credit score may not be enough to guarantee credit card approval. Read on to see why. [[{“value”:”

Consumer credit scores typically range from a low of 300 to a high of 850. Most people don’t have perfect credit, but getting your credit score above 800 is doable. According to Experian, one of the three major credit reporting bureaus, that would put you in the category of having exceptional credit.

But while a credit score above 800 is often enough to get you approved for a new credit card, that’s not a given. Here are a couple of reasons why you may be denied, despite having a truly outstanding credit score.

1. Your income isn’t high enough

When you’re signing a large loan, like a mortgage, your lender will need to verify that you earn enough money to keep up with your monthly payments. With a credit card, you don’t have preset monthly payments like you do with a mortgage. Rather, your payments will vary based on the amount of spending you do.

But still, credit card companies may have income requirements for certain cards and offers. And if your income doesn’t cut it, then a strong credit score may not be enough to bail you out.

2. You have too many recently opened credit cards in your name

Opening too many credit cards in short order can be a red flag. A credit card issuer might hesitate to approve your application if it thinks you’re suddenly borrowing a lot and are likely to end up overextended.

Of course, a super-strong credit score should be enough to convince a credit card issuer otherwise. But struggling to manage your payments isn’t the only issue with having too many recently opened credit cards. You may be denied a new card based on not needing to use it much.

Credit card issuers like to approve borrowers who are apt to use their cards. If you have eight other cards in your name, a company you apply with might assume that it won’t get much of your business and therefore refuse to issue you a card.

Also, it’s not a secret that savvy consumers have a practice of chasing credit card sign-up bonuses and canceling their accounts once they’ve earned their cash back or miles. If you’ve recently opened a bunch of credit cards, a new issuer might assume you’ll snag your bonus and leave. So that’s another reason it might say no.

What to do if your credit card application gets denied

Having a credit card application rejected might come as a shock if your score is above 800. But if that happens, your best bet is to call the issuer in question and ask what happened. If it tells you that you were denied because you recently opened too many other accounts, you may be able to apply again in three or six months.

Otherwise, you can always try your luck with another issuer if you have a specific reason for wanting to add another credit card to your wallet. But if you’ve already been denied due to having too many credit cards, you may want to consider it a sign that you’re better off waiting to get another one.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 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.
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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Overdrafting your bank account can be expensive and a bit embarrassing. Learn a few tried-and-true tips to make sure it doesn’t happen to you. [[{“value”:”

A checking account is likely the cornerstone of your finances — you receive your paychecks there and use the account to funnel money elsewhere (such as a savings account or investment account).

While using your checking account is likely pretty easy, this type of bank account is not without potential pitfalls — most notably, overdrafts. This is when you spend more money than you have in the account. And you may be charged an annoying fee when that happens, too.

Here are four solid tips to keep this from happening to you.

1. Use technology

Gone are the days when we had to go to a bank in person or make a phone call to check our account balances. You don’t even need to visit an ATM to get your balance — you’ve got a powerful tool in your pocket: your smartphone.

If you haven’t already, it’s worth downloading your bank’s mobile app and getting familiar with how it works (it’s likely very easy — banks put a lot of time and money into the user interfaces for their apps). Then you can check your balance wherever you happen to be.

If you suspect your account is getting a little low, you can check for yourself. And if you’re suspicious that a bill you paid hasn’t been debited from your checking account yet, you can log in to see, and then follow up if need be. Knowledge is power, and knowing your balance is the first step of avoiding overdrafts.

2. Opt in for low balance alerts

That mobile app (or even your bank’s website) likely offers you another great tool for staying on top of your bank account balance: low balance alerts. You can sign up to receive an email or a text message if your balance falls below a certain amount. You’ll have an immediate signal that you need to stop spending until more money hits your account.

Oh, and opt in for direct deposit alerts while you’re at it — these will tell you when you’ve been paid and so you know you’re safe to spend money again.

3. Link another account

Your bank likely offers you the option to sign up for full-on overdraft protection. If you opt in for this feature, you’ll be able to link another bank account (or possibly a credit card) that can be drawn from if you spend more than what’s in your checking. I have overdraft protection on my main checking account by way of the savings account connected to it.

This savings account is of limited use to me otherwise (thanks to its pathetically low APY and lack of savings buckets), but I keep it funded just enough to avoid a monthly fee and to support overdraft protection in the event that I overdraw my checking account. This is a good way to avoid an insufficient funds (NSF) fee — as reported by the AP, those fees cost an average of more than $26 each.

4. Leave yourself a buffer

Depending on your own personal finances, this last one may be easier said than done — it certainly was for me during all the years I lived paycheck to paycheck. So that’s why it’s last on this list — the above three tips are a lot more useful for someone who doesn’t have a lot of money left over after the bills are paid.

But if you’re able to, get in the habit of leaving a certain amount of cash in your checking account as a buffer against overdrafts. I do this — for a while, it was $1,000 extra, then I got more comfortable with my finances and these days, I leave just $500 extra in my checking. I like to earn interest on as much of my cash as I can, so after I pay my bills every week, I move anything left above that $500 to my high-yield savings account.

Your own magic number is based on your money and your comfort level. Maybe $1,000 or $2,000 is right — or maybe you want to keep an entire month’s worth of bills in your checking. Whatever you do, keep track of how much should be in your account at any given time. This will make accidentally overspending your balance unlikely.

Overdrafting your bank account is no fun — and it can be expensive to boot. Follow these tips to ensure you stay in the black.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 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.
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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Selling blood on a regular basis isn’t feasible. Read on for a few more practical side hustle ideas. [[{“value”:”

People often joke about selling their blood for cash when money gets tight and they need a boost to their savings account. But actually, it’s not just a joke.

Due to safety concerns, donors are not compensated for regular blood donations. However, certain blood donation programs may be eligible for compensation, such as donating plasma. The Red Cross, for example, has a special donor program that compensates participants up to $350 for certain blood collections, including white blood cells.

You should know that donating blood in any shape or form has the potential to save other people’s lives. So that’s reason enough to want to do it. But giving blood — whether for money or not — isn’t always easy.

For one thing, there are certain health requirements you might need to meet before you’re allowed to donate. And depending on the nature of your donation, you may be sidelined for a bit of time after the process is over. So it’s probably not the best idea to turn selling blood into a regular side hustle.

And besides, there are usually mandatory waiting periods between donations that may not align with your financial needs. With that in mind, here are a few far less painful side hustles you can try to drum up consistent cash.

1. Driving for a ride-hailing company

If you have a car and don’t mind spending time behind the wheel, driving for a ride-hailing service could be a great way to put extra cash in your bank account. And the nice thing about a gig like this is that it’s flexible.

Don’t want to work next Friday night because you have family in town? Don’t log into the app and accept passengers. It’s as simple as that.

Also, if you’re someone who works at a desk job all day, you may not relish the idea of doing after-hours data entry or web design at home. Driving people around gets you out and about, and you might even meet some interesting folks along the way.

2. Writing or editing online content

If you work outside the home, you may want a side hustle that doesn’t require you to leave the house at night. And if you have kids and child care is an issue, you might need a remote side hustle. Otherwise, the amount you spend on a babysitter could wipe out your extra earnings.

If you’re good with words, it pays to look at online content writing gigs. And there are many different types. You may get hired to create marketing materials for a retail company. Or you might update a company’s blog or write homeowner guides for a contracting firm looking to drum up business.

If you don’t love the idea of having to create content, you may be able to get a job editing it. To do this, though, you need a keen eye for detail and a strong understanding of grammar. You should also familiarize yourself with different online writing guidelines, like Associated Press (AP) style.

3. Caring for pets

If your job has you interacting with people all week, you may not have the patience to do more of the same on the side. But why talk to people when you could instead cuddle puppies or watch cute little kittens roam about?

There are plenty of pet owners who need their animals cared for while they’re away. Create an account on an app like Rover so you can connect with people who want their pets looked after in their homes or in yours. You might risk the occasional cat scratch or dog nip, but you at least won’t be forced to have a needle plunged into your vein.

Donating blood is a wonderful thing. And you don’t have to feel guilty about being compensated for it if you participate in a specialized donation program — especially since that might require an extra time commitment on your part.

But if you’re looking for a steady side hustle, giving blood for money probably isn’t it. So it pays to explore your options for finding a gig you can do regularly that works wonders for your budget.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 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.
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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