Best Credit Card for Groceries 2022
One of the main expenses is groceries, and studies have shown that Americans spend more on the food they buy in U.S supermarkets to cook at home. Since you’ll be spending a lot of money on stocking up on groceries, you should get a card that will give you rewards like cash back or bonuses when you shop at a grocery store. With our guide, you can get the best credit card for groceries. This guide covers the best grocery credit cards from top lenders and other important information like how to apply and choose the best one for you. Let’s take a closer look.
Credit Cards for Groceries: Best Offers
Cards for groceries offer different rewards starting from a welcome bonus after the account opening process. Then with grocery store spending and card membership, you can win other rewards. When compiling our list of the best grocery rewards cards, we compared dozens of available cards and prioritized the rewards rate as the main factor. Other factors include the account opening offer, annual fees, and interest rates. As long as you choose the right credit cards for purchasing groceries, there are different rewards, cashbacks, and points that you can look out for. Based on these factors, we compiled the top 5 grocery cards, so look below.
|Lender||Interest Rates||Annual Fee||Rewards Rate||Welcome Bonus|
|American Express® Gold||18.99% – 25.99% (Variable)||$250||4X||60,000 points|
|Blue Cash Preferred® Card from American Express||16.99% – 27.99% (Variable)||$95||6% cash back||$350|
|Target RedCard™||22.90% (Variable)||$0||5%||N/A|
|Citi Custom Cash℠||16.99% – 26.99% (Variable)||$0||5%||$200|
|Amazon Rewards Visa||16.49% – 24.99% (Variable)||$0||1% – 3%||Amazon gift card|
American Express® Gold
At the top of our list is the Gold from American Express, offering up to 4x points to its users. After spending $4,000 on the first six months, you earn 60,000 membership points. You can also earn 4x membership rewards points up to $25,000. Other rewards include 3x membership rewards points on fights, Uber cash, and dining credit. It is quite similar to Savorone Cash Rewards credit card but with better rates.
Annual Fee: $250
Interest Rates: 18.99% – 25.99%
Variable Rewards Rate: 4X
Credit Score: 700 – 749
Welcome Bonus: 60,000 points
- Possible to win high rewards.
- Can avoid annual fees with five additional users.
- Allows point transfer to other partners.
- Offers different color options.
- High APR and annual fees.
- Limited options for balance transfers.
The Gold Card is the perfect choice for foodies and travelers with good to excellent credit. The annual fee is a bit high and can overshadow the statement credit, but there are a lot of benefits in the eligible spend category to look out for.
Blue Cash Preferred® Card from American Express
When you use the Blue Cash Preferred Card from American Express, you first get a $350 credit after spending $3,000 within the first six months. The rewards rate is 6% cash back at U.S supermarkets up to $6,000. You can enjoy balance transfers with 0% APR and also get cashback on select U.S streaming subscriptions and other grocery purchases. You can also get cash back at U.S gas stations.
Annual Fee: $95 Interest Rates: 16.99% – 27.99%
Variable Rewards Rate: 6% cash back
Credit Score: 700 – 749
Welcome Bonus: $350
- High cashbacks for different grocery spending.
- Comes with travel benefits.
- Automatic card with no enrollment required.
- Offers 0% APR with balance transfer card.
- 6% cashback is limited and becomes 1%.
- There is an annual fee.
If you spend a lot of money at U.S. supermarkets, U.S. gas stations, or transit like rideshare and taxis, you can get a lot of cash back at stores with the Blue Cash Preferred. It is similar to the Blue Cash Everyday Card. There is an annual fee but not so much that it affects your statement credit.
If you shop at Target frequently, this card will offer you a 5% discount on almost all purchases, whether online or in person. But, not all items at target qualify. There are no annual fees, and the website will give free shipping. As for the interest rate, it is variable and fixed at 22.9%.
Annual Fee: $0
Interest Rates: 22.90%
Variable Rewards Rate: 5%
Credit Score: 700 – 749
Welcome Bonus: N/A
- 5% discount on almost all Target purchases.
- Extends the return dates to 30 days.
- Free 2-day shipping on the website.
- No annual fees.
- APR is high and rigid.
- There are late payment fees.
Those who are constantly getting groceries and supplies from Target will enjoy the generous rewards of 5% discount each month on the 0% annual fee card. There are late payment fees and high APR, so pay on time to prevent losing your statement credit.
Citi Custom Cash℠ Card
Once you get the no annual fee Citi Custom Cash, you can receive $200 cashback on the first $1,500 purchases. There is a 0% APR balance transfer, and your earnings adjust automatically when you spend at grocery stores. There is 5% cashback up to the first $500 before becoming 1%. Plus, there is a 1% unlimited cash back at stores on all other purchases.
Annual Fee: 0%
Interest Rates: 16.99% – 26.99%
Variable Rewards Rate: 5% up to $500
Credit Score: 700 0 749
Welcome Bonus: $200
- No registration is needed for bonus rewards.
- No annual fees.
- 0% APR on balance transfer.
- No need to activate or select bonus categories.
- High foreign transaction fee.
- Balance transfer comes with high fees.
If you want to enjoy rotating bonus categories, Citi Custom Cash will help you leverage cash back at U.S. stores. But, the foreign transaction fees are a bit high.
Amazon Rewards Visa Signature
Once your card gets approved, you will receive an Amazon gift card. The rewards include 3% cash back on U.S. supermarkets including Amazon.com and Whole Foods Market and 2% for restaurants, drugstore purchases, and cash back at U.S. gas stations. 1% is also offered on all other purchases. You can redeem rewards in bonus cash, gift cards, or travel. There are different rewards for travelers too.
Annual Fee: $0
Interest Rates: 16.49% – 24.99%
Variable Rewards Rate: 1% to 3% cash back on different categories
Credit Score: 700 – 749
Welcome Bonus: Amazon gift card
- Unlimited 3% cashback on Amazon and Whole Foods.
- There is no foreign transaction fee.
- Wide range of benefits are offered.
- 0% annual fee.
- High balance transfer fee.
- 3% cashback is limited to Amazon sites.
Shoppers at Amazon.com and Whole Foods can get fantastic benefits from the Amazon Prime Rewards Visa Signature Card. There are additional cashbacks and no annual fee.
You can also consider some different cards, like Home Depot or MasterCard.
What is Considered a Grocery Credit Card?
A grocery card allows you to earn cash reward dollars when you buy groceries. After the provider sends money through direct deposit to your credit account, you can use the statement credit to purchase items at stores. Then, card-providers and U.S supermarkets themselves provide cashbacks, airline miles, and other bonus rewards.
Some lenders like Chase Ultimate Rewards offer programs instead of credit cards. The rewards can be limited or unlimited. Because of these benefits, grocery rewards credit cards come with higher credit score requirements, usually good to excellent, unlike some personal loans.
You’re not only limited to groceries, as other eligible purchases include dining, travel, gas stations, transit, online grocery purchases, streaming services, entertainment purchases, home improvement stores and other purchases. Also, keep in mind that not all stores are considered grocery stores, and the card-issuer might not recognize names like Walmart or Costco so you’ll be spending your statement credits monthly with no rewards.
How to Choose the Best Grocery Credit Card?
When choosing the best grocery store credit card for yourself, you must consider specific factors. This is especially since there are a lot of options. Consider these factors:
How Much You Spend on Groceries
First, you should keep in mind how much you will spend using that grocery rewards card. Some card-providers place limits on their rewards, so you get a smaller bonus if you surpass the limit. For instance, the Preferred Card puts a 6% cash back at U.S. supermarkets on the first $6,000, but if you exceed this, you get 1%.
Some grocery rewards credit cards come with an annual fee, which always seems like they offer better rewards and benefits to users. But, you should consider whether you can afford the annual fee and other fees that might be required.
How Many Credit Cards
You can get even more rewards from grocery shopping when using more than one card, especially by leveraging the welcome bonus upon account opening. But, juggling more than one card for combined purchases can be a bit confusing, so you can consider cards that provide unlimited bonus rewards instead.
How to Buy Groceries Online with Your Credit Card?
Rather than going to the grocery store, you can opt for online retail purchases with a card and still enjoy different benefits. If you are using a store card like the Target RedCard or the Amazon Rewards Visa, it’s best to shop directly at their website. If not, you can shop at any of the allowed retailers for your card-providers. Here’s how:
- Create an account with the online shopping platform.
- Select the items you want to purchase and put them in your online cart.
- After shopping, check out and choose your delivery method.
- Input your card information, and you might receive a cashback depending on your provider.
- Wait for your delivery time.
Should You Apply for a Grocery Card?
Grocery credit cards give shoppers a lot of benefits, so anyone purchasing groceries consistently can consider this. For one, these credit cards are well suited for budget shoppers since it helps them save more money and get grocery rewards. Also, food lovers will benefit significantly from credit cards, especially those that offer cash rewards on dining like Capital One Entertainment purchases and the American Express Gold Card.
This way, eating out or at home is still rewarding. Another group of people that grocery cards are suited for are college students because they are usually looking for ways to save money. If you fall into any category or just want to enjoy rewards each time you buy food and other purchases, you should consider applying for a cash rewards credit card.
How to Earn Rewards with Grocery Cards?
Grocery cards come with many rewards that help you maximize your shopping experience. The main reward you will see is the cashback, which offers a certain percentage of the money you use for shopping. When using cashbacks, some credit card-issuers make it unlimited while others put a limit.
The cashback can be reduced or taken away if you reach the amount limit. To fully earn your credit card rewards, you should consider which grocery store purchases count towards cashbacks and other rewards on the groceries card. Also, you should focus on following the fixed monthly plan fee to avoid the interest building up while you earn cash rewards. Purchasing gift cards also offer different grocery rewards on credit cards, and if you’re using a store card, sign up for their loyalty rewards program.
If you’re looking for ways to save on shopping, you should consider the best credit card for groceries on our list. Compare the providers based on whether they offer bonus rewards, yearly fee, account opening bonus, and APR, and select the one that works best for you. From there, you can start shopping online or in person.
- How do you use a credit card for groceries?
Make eligible purchases at your card-provider’s stores and pay with your card. You can also do this online. The provider stores your information as you shop and will reward you accordingly.
- What grocery store has a card?
Some grocery stores like Target and Whole Foods come with credit cards, and you can enjoy excellent benefits when you shop at them. With store cards, you don’t have to worry about whether it is allowed by the provider or not.
- Is it good to buy groceries with a credit card?
As long as you make your monthly payments on time, buying groceries and other purchases with a card is a great idea. You can win cashbacks and enjoy benefits on other supermarket purchases.
- Does buying groceries with a credit card build credit?
Buying groceries with a rewards credit card will increase the utilization rate, potentially increasing your credit score.