Here's What Happens When You Cancel Your Costco Membership After 364 Days

If you’re not used to spending money just to enter a store, then you may not love the idea of paying for access to Costco. A basic membership will cost you $65 a year following a recent fee hike, while an Executive membership that gives you 2% cash back on your purchases will cost $130. 

But there’s a reason Costco charges a membership fee. Collecting that money helps Costco offer ultra-low prices. And if you shop at the store often enough, you may find that your savings are able to more than make up for your membership fee. 

Costco also fully stands behind every membership it sells. If you’re unhappy with yours, you can cancel and get your money back at any time. 

Technically, this means you can buy a membership, use it for 364 days, and then cancel right before the one-year mark for a refund. But whether you should exercise this option is a different story.

When you take advantage of Costco’s generosity

Costco will typically give you your money back on a membership even if it’s clear you’ve abused its policy by canceling right before the one-year mark. But if you do that, don’t expect to be allowed to renew anytime soon.

There’s no preset amount of time you’ll need to wait in that situation before being allowed to sign up for Costco again. But you should know that Costco can deny or revoke memberships at its discretion. So if you cancel after 364 days (meaning, right before your one year is up), you may have to wait a year to become a member once more. And there’s a chance that Costco might ban you from the store for several years. 

Don’t be so quick to cancel your Costco membership

If you’re not getting great value out of your Costco membership, then there’s no sense in paying for it. But before you cancel, make sure you’re aware of the many benefits it offers.

For example, did you know that as a Costco member, you get access to discounted gift cards? With the holidays coming up, those might come in handy and save you a nice amount of money.

You may also not realize this, but Costco offers a host of home improvement services, from window treatments to flooring to solar panels. Not only might your membership help you pull off renovations at a great price, but you’ll commonly be rewarded with a Costco Shop Card (the store’s version of a gift card) after your project is done. That’s bonus cash you get to use at the store.

Plus, you might save more money than expected by shopping at Costco with the right credit card. Click here for a list of credit cards that reward Costco shoppers big time.

And finally, don’t forget about Costco’s low-cost gas. Not only might you spend less per gallon, but you might get better fuel efficiency because Costco gas carries the TOP TIER designation. 

Just because Costco gives you the flexibility to cancel your membership right before the one-year mark doesn’t mean you should. Losing access to Costco could mean missing out on more benefits than you’d expect.