Do you need Credit Cards best for Groceries? If you’re looking to stretch your grocery budget even further, you might want to consider a rewards credit card that can help you earn over $100 a year on groceries. However, this article list out the best credit cards for groceries.
If groceries are a major expense for your household, you may benefit from a credit card that earns bonus rewards when you use it at grocery stores.
Grocery rewards can be earned as cashback, points, or airline miles and redeemed for cash, statement credits, gift cards, travel, merchandise, and more. That means your regular trips to the grocery store could fund your next vacation.
While you have a ton of choices in terms of travel rewards credit cards, there are only a handful of points-earning or cashback cards for grocery purchases. In fact, many of the best choices come from one issuer — American Express.
Credit Cards for Groceries
- Blue Cash Preferred® Card from American Express
- Blue Cash Everyday® Card from American Express
- Chase Freedom®
- Bank of America® Cash Rewards
Blue Cash Preferred® Card from American Express
Another awesome grocery card is the Blue Cash Preferred® Card from American Express. With this card, you’ll earn 6% cashback on your first $6,000 at U.S. supermarkets each year (then 1%).
If you max that out, that’s a $360 benefit! In addition, you’ll get 3% cashback at U.S. gas stations and on transit, 1% cashback on all other purchases.
While this card does charge a $95 annual fee. And if you spend a ton on groceries anyway, the fee is well worth it. A family of four spending $1,000 a month on groceries would earn $360 back on their first $6,000 spent at U.S. supermarkets, plus another $60 on the rest of their annual grocery spending.
That’s more than $300 in rewards, even after the annual fee, on grocery shopping alone — not to mention the additional money back earned at U.S. gas stations, select U.S. streaming subscriptions, and on transit purchases.
Blue Cash Everyday® Card from American Express
The Blue Cash Everyday® Card from American Express is a no-fee rewards card that is truly ideal for grocery spending.
With this card, you’ll earn 3% cashback on your first $6,000 at U.S supermarkets each year (then 1%), 2% cashback at U.S. gas stations and at select U.S. department stores, and 1% cashback on all other purchases. Plus, there’s an intro bonus.
You can redeem your cashback as a statement credit, and use that to purchase more groceries – or anything else your heart desires. Best of all, this card will never charge an annual fee.
If you’re looking for a no-fee grocery card, the Chase Freedom® card is where it’s at. With this card, you’ll earn one point per dollar spent on all purchases, and 5 points per dollar on your first $1,500 spent in categories that rotate every quarter. Best of all, in past years you, could get 5x bonus categories that included grocery spending.
With the average American family of four spending roughly $700 to $1,000 a month on groceries, you could easily end up hitting the quarterly $1,500 cap on bonus spending in just two months – and that’s a cool 7,500 in points, worth $75. It may not be a lot, but it’s free money!
Bank of America® Cash Rewards
The Bank of America® Cash Rewards Credit Card is another card with easy-to-earn rewards on grocery spending, a healthy signup bonus, and no annual fee.
By signing up, you’ll earn 1% cash back on every purchase, 2% at grocery stores and now at wholesale clubs, and 3% on gas for the first $2,500 in combined grocery/wholesale club/gas purchases each quarter.
You can redeem your cash back in the form of statement credits, and there is no need to keep track of rotating bonus categories.
Types of Grocery Rewards Credit Cards & How They Work?
Flat-Rate Cash-Back Credit Cards
These cards earn the same rewards rate on all purchases. Examples: Capital One Quicksilver Rewards and Citi Double Cash.
General Cash-Back Credit Cards with Multiple Rewards Rates
You earn a different amount of rewards depending on the category of your purchases. Some offer bonus rewards on grocery purchases—usually up to a specific annual limit—with different rewards rates on other purchases you make. Examples: Blue Cash Preferred Card from American Express and the Capital One SavorOne Cash Rewards.
Credit Cards With Rotating Categories
Some credit cards change the category that earns the highest rewards. One quarter, that category may include grocery store spending, and the cards usually publish a calendar of the quarterly rewards categories.
Keep in mind this means you may only earn bonus rewards on grocery purchases for part of the year. Examples: Discover it Cash Back and Chase Freedom.
Co-branded Grocery Store Cards
These cards earn extra rewards at specific grocery stores. Depending on the card, you may or may not be able to use the credit card elsewhere. Examples: Amazon Rewards Visa Signature Card and Kroger REWARDS World Mastercard.
Note: Many of the top credit cards for groceries offer a welcome bonus if you can meet a minimum spending requirement within a few months. This bonus can be worth $100 or more on its own.
What Can You Expect From Grocery Rewards Credit Cards?
Here’s what you need to know about grocery rewards credit cards.
Rewards earning: All the grocery cards surveyed earn at least two points per dollar or 2% cashback on grocery store purchases. A quarter of the cards surveyed earn at least five points per dollar or 5% cashback on grocery store purchases.
Rewards redemption: You can redeem rewards flexibly with cashback or other options using all the grocery cards surveyed.
Sign-up bonus value: You can earn a sign-up bonus of at least $50 with more than 80% of grocery credit cards.
Annual fee: Nearly 60% of grocery cards charge no annual fee. All but one of the grocery cards surveyed has an annual fee of $100 or less.
APR: All but one of the grocery cards surveyed have a minimum APR of between 15% and 18.99%.
Pros & Cons of Grocery Rewards Cards
- Annual fees are rare
- The bigger the grocery bill, the better the rewards can be
- Rewards earning may not be limited to groceries
- You may get a sign-up bonus
- Interest charges can swamp your rewards
- Rewards aren’t always unlimited
- Redemption options are sometimes limited
- Discounts aren’t always as valuable as rewards
The Bottom Line
While not everyone is interested in credit card rewards, everyone has to buy food. And if you’re spending a bundle at the grocery store each month anyway, why not earn some cashback in the process?
The best cash back cards for grocery stores make the process easy, offer a ton of rewards, and don’t charge fees or make you jump through a bunch of hoops.
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