3 Great Reasons to Join Sam's Club Instead of Costco

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Costco and Sam's Club are warehouse clubs with members-only deals that can help you keep more money in your checking account . Both retailers have similarities -- you must be a member to shop the deals, many items are sold in bulk, and you can get discounts on gasoline.

But there are some key differences to consider before you join either club. Depending on your needs and the benefits you value, Sam's Club may be a better membership option. Here are three reasons to join Sam's Club instead of Costco.

1. You'll pay less to join Sam's Club

If you're looking to stretch your dollars further, it's wise to consider the cost of an annual membership before you join. Costco members pay higher fees than Sam's Club members.

Let's take a closer look at each retailer's membership options:

• Costco's Gold Star membership costs $65 annually. This is the most basic membership, which allows shoppers to access members-only deals in-club and at Costco.com.
• Costco's Executive Membership costs $130 per year. This membership provides more perks, like extra discounts when you order checks and the opportunity to earn 2% rewards on eligible Costco purchases.

Meanwhile, Sam's Club has more affordable membership fees:

• A Club membership is $50 per year. This is the standard membership you can buy to shop the best Sam's Club deals.
• A Plus membership costs $110 annually. You earn 2% Sam's Cash on eligible purchases and get more perks like extra pharmacy and optical savings and 50% off tire installation.

Sam's Club also has discounted memberships for eligible shoppers, like teachers, healthcare workers, veterans, and seniors. Plus, the retailer runs new-member promotions, which can provide savings on your first year of membership.

If an affordable membership fee is what you're after, Sam's Club is the clear winner.

Ready to join Sam's Club? Using a rewards credit card to pay your annual membership fee is wise. Many shoppers prefer credit cards that earn cash back rewards.

With a cash back rewards card, you can earn cash when shopping at Sam's Club and other retailers. Check out our curated list of the best cash back credit cards to discover how easy it is to earn cash back rewards.

2. Take advantage of early shopping hours

Here's another reason some shoppers prefer to invest in a Sam's Club membership instead of a Costco card. Plus members can take advantage of early shopping hours. During select hours, only Plus members can shop. This perk is available at participating clubs.

Shopping during these hours may help you get your shopping done faster. If you want to waste less time shopping and don't mind shopping earlier in the day, this membership perk may prove valuable. Early shopping hours vary by location, so check with your local club to find out more.

3. Avoid the checkout line and save more with Scan & Go

Another unique feature at Sam's Club is Scan & Go. This tool allows all members to scan and pay for their goods through the Sam's Club mobile app.

You can scan product barcodes through the Sam's Club mobile app as you shop. Once you're ready to check out, you can pay electronically. Don't forget to use a credit card that earns rewards. Explore our list of the best rewards credit cards that offer big rewards on your everyday purchases.

This feature lets you skip the regular checkout line. If you hate long lines, this is a winning membership perk. All you have to do is show your digital receipt before you leave the club. You'll see a running cart total as you shop, which can make it easier to stay on budget.

Scan & Go users can also score additional discounts when shopping in-club. Deals are advertised on in-club signage, the Sam's Club website, and the mobile app. By purchasing eligible items and using Scan & Go to check out, you can maximize your savings.

Every dollar you save is a win for your wallet

Warehouse club deals may help you trim your spending. But before you rush to become a member, consider which retailer's membership is best for you. If an annual membership is out of your budget, there are other ways to save, such as shopping at stores like Target and Aldi.

Another option is to earn cash back rewards by using cash back apps . Every time you save money or earn cash back rewards, it benefits your finances.

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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. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Target. The Motley Fool has a disclosure policy .