3 Reasons Not to Upgrade to Costco Executive

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There's a reason I don't upgrade my Costco membership . My main hang-up: the price. The $65 Gold Star membership is half the price of the premium Executive membership.

The Executive membership's main draw is the 2% rewards you can redeem once per year at your local warehouse. (You can also redeem it online by purchasing a Costco Shop Card on Costco.com.) It's a great way to earn back the cost of membership and then some.

But there's a caveat: Executive is only worth it if you spend big. Here's why you should not upgrade to an Executive membership.

1. You spend less than $3,250 per year at Costco

You'll need to spend at least $3,250 per year at Costco to make the 2% back worth it. Otherwise, it doesn't cover the premium membership. A membership that, as of September this year, will be $10 more expensive than before.

I shop frequently at Costco, but my grocery list is short. I spend mostly on budget items like Costco rotisserie chicken and giant bags of frozen shrimp. It's cheap. Not even splurging on a 12-pack of Alaskan salmon patties is enough to bring me over $3,250.

But if you can spend big at Costco, the Executive membership is worth it. You can earn up to $1,250 beginning Sept. 1, 2024. That's more than 10-times the cost of an Executive membership. But it's hard to hit that spending level, especially without using Costco Travel.

2. You don't use Costco Travel

Costco Travel is one of the easiest ways to make an Executive upgrade worth it. Travel spending counts toward your 2% back reward. A single $1,000 trip would earn you $20 in Costco rewards. Four trips a year would cover the Executive upgrade fee, and then some.

I don't use Costco Travel at all. Sure, the rewards are cool. And I do trust Costco. But I'm a Google native -- I want to sort through all possible flights, not just Costco partners. And booking stays through Airbnb is much neater and more satisfying than using a store's travel portal.

Paired with Costco credit cards , booking through Costco Travel is a great way to earn rewards. You can quickly rack up the money you need to make the upgrade worth it. But if you don't travel, you're out of luck. Doubly so if you don't use other Executive perks.

3. You don't use Executive perks

Do you know that Executive members get 20% discounts on buying checks? Or that Executive members can buy discounted home, auto, and pet insurance ?

I didn't. Costco doesn't advertise its niche perks. You have to wade through Costco's dense website and crawl through its pages like a super-detective to find them.

I'd rather skim best-of pages for expert reviews of personal finance products. It's easier than spending hours surfing Costco. Googling is faster, and I'm used to it.

But if you do find Costco perks interesting, you might want to upgrade. Even if you don't spend $3,250 per year, the other perks could make up for it.

Caveat: Costco will refund you

If you don't earn more in Costco rewards than the price of an Executive upgrade, Costco will refund you the difference. Here's how it works:

1. Visit a Costco warehouse.
2. Go to the membership counter.
3. Ask a Costco employee to downgrade your membership.

Costco will probably push you to keep your membership. It's normal. But if you remain firm, you'll get your refund. Costco's refund policy is, "We will cancel and refund your membership fee at any time if you are dissatisfied."

Upgrading your membership is low-risk. Worst comes to worst, you're forced to spend time and energy contacting a Costco representative. But hey -- there are good reasons to avoid the hassle. You know your priorities best. A Costco Executive membership is great, but it's not for everyone.

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