Grocery shopping is one of life’s most basic tasks. Everyone has to eat to survive. Also, given the current COVID-19 environment, many of us are looking for ways to stretch our money. With that in mind, we consulted WalletHub to find good deals on cards that allow you to rack up rewards for carrying out this basic need. We found seven of them, plus some tips on choosing a card.
Tips for Picking a Grocery Credit Card
It can be challenging to find the right grocery-shopping rewards card. Let’s look at some ways to help ease the information overload.
- Check your credit score. The best rewards cards usually require high scores for approval. If you don’t know your score, you can check your latest credit score for free on WalletHub.
- Consider your shopping preferences. If you’re a Walmart fan, you probably don’t want a Target credit card. What is your monthly grocery shopping budget? This may impact how rewarding some cards are for you and will help you decide whether it’s worth paying an annual fee.
- How many cards can you manage? Do you only want one card in your wallet? Will you use the card for non-grocery purchases? On the other hand, if you want to use a collection of cards for specific purposes (known as the Island Approach), you can have a more limited scope.
- Compare non-grocery credit cards. Examine how the best rewards credit cards – particularly the best cashback cards – compare for the types of purchases you plan to make. A grocery rewards ad doesn’t guarantee that it is the best card for you.
Comparing grocery credit cards to other reward cards will help ensure that you get the best deal. Also, WalletHub has a guide on choosing the best credit card for your needs. You can get personalized credit card recommendations when you sign up for a free WalletHub account.
Now let’s look at some cards.
The American Express Blue Cash Preferred Card gives 6% cashback on up to $6,000 spent at U.S. supermarkets each year and 6% on U.S. streaming subscriptions. This is also a great credit card for gas. Cardholders also earn 3% cashback at U.S. gas stations and on transit. All other purchases yield a 1% cashback. And here’s another nice benefit: If you spend at least $1,000 within the first three months, you will receive a $250 bonus. That covers the card’s $95 annual fee for two years.
This means the Blue Cash Preferred® Card from American Express is an excellent way to save on everyday expenses, particularly groceries and gas. We will caution that you must have excellent credit to be approved for this card.
The Blue Cash Everyday® Card from American Express is a good card for those who want a great all-around credit card with bonus cashback rewards in significant spending categories but no annual fee. It gives 3% cashback at U.S. supermarkets, up to $6,000 spent per year, then 1% back. Purchases at U.S. gas stations and U.S. department stores also get you 2% cashback, and all other purchases yield 1% back.
The Capital One® SavorOne® Cash Rewards Credit Card gives bonus rewards on groceries, dining out, and entertainment but has no annual fee. The rewards are robust – 3% cashback on dining and entertainment, 2% cashback at grocery stores, and 1% back on everything else. In addition to these benefits, if you spend $500 in the first three months your account is open, you will receive a $150 bonus.
Staying with Capital One, the Capital One® Savor® Cash Rewards Credit Card is great for foodies. You get unlimited 4% cashback on dining and entertainment, 2% at grocery stores, and 1% on everything else. Spending $3,000 in the first three months your account is open gets you a $300 bonus. This card does charge an annual fee of $95 and requires at least good credit for approval.
While Amazon isn’t a grocery store, it does own Whole Foods. The Amazon.com Visa Signature Card rewards cardholders handsomely for shopping there, especially Prime members. You will receive three points per $1 spent on Amazon.com and Whole Foods purchases, equal to 3% back. But if you are a Prime member, you get five points per $1, for 5% back. Similarly, a $50 Amazon.com gift card is a standard benefit, but Prime members get a $70 gift card.
You earn two points per $1 spent at restaurants, gas stations, and drugstores. Purchases anywhere else will yield one point per $1 spent. There is no annual fee, and the card can be used as a Visa card. Excellent credit is usually required for approval.
The Target Credit Card is perfect if you shop for groceries at Target. It has a $0 annual fee and gives 5% back on all Target and Target.com purchases. This is one of the more rare cards that you can get if you only have average credit.
People with limited credit should strongly consider the Capital One® QuicksilverOne® Cash Rewards Credit Card. If you charge at least $2,600 per year (about $217 a month), the QuicksilverOne Card’s earning rate of 1.5% cashback on all purchases will give you enough value to cover the cost of its $39 annual fee. Any rewards you earn beyond that are pure savings.