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Are your grocery bills making you sweat? You are not alone! Food prices are rising, and every dollar counts. Cash back credit cards can be your secret weapon. These cards offer a way to earn money back on everyday purchases. This article will guide you to the best cash back card for grocery rewards.
Understanding Best Cash Back Card for Groceries
Cash back credit cards are pretty straightforward. When you use the card, you earn a percentage back. It is like getting a discount on everything you buy. The rewards can add up fast, especially on groceries.
How Cash Back Rewards Work
Most cash back cards give a percentage of your spending back. For example, a card might offer 3% cash back on groceries. If you spend $200, you would earn $6 back. Redemption options vary. Some cards offer statement credits, which lower your balance. Others let you deposit the cash directly into your bank. Spending tiers could affect your earning potential. Some cards offer higher rewards up to a certain spending limit.
Types of Grocery Spending That Qualify
What counts as “groceries” can be confusing. Usually, purchases at supermarkets and grocery stores qualify. Big box stores like Walmart or Target might not code as grocery stores. Wholesale clubs like Costco or Sam’s Club typically don’t either. Gas stations usually don’t qualify, even if they sell some food items. To check if a store codes as a grocery store, look at past statements. See how the merchant is categorized.
Common Credit Card Fees to Watch Out For
Credit card fees can eat into your rewards. Annual fees can cancel out your earnings if you don’t spend enough. Foreign transaction fees apply when you use the card abroad. Late payment fees happen if you miss your due date. High APRs (Annual Percentage Rates) mean you’ll pay more interest if you carry a balance. Always pay your balance in full each month. This will avoid interest charges and maximize your cash back.
Top Cash Back Credit Cards for Grocery Spending
Here are a few top cards to consider for grocery rewards. We’ll explore their benefits and potential savings.
Blue Cash Preferred® Card from American Express Review
The Blue Cash Preferred® Card is a solid choice. It offers 6% cash back on groceries at U.S. supermarkets. This is on up to $6,000 per year in purchases (then 1%). You also get 6% cash back on select U.S. streaming subscriptions. Plus, 3% cash back at U.S. gas stations and transit. There is a welcome offer, too. As of October 2024, you can earn a $250 statement credit after you spend $3,000 in purchases within the first 6 months. There is a $0 intro annual fee for one year, then $95. The APR varies based on creditworthiness.
Let’s say you spend $500 a month on groceries. You’d earn $30 cash back each month. That’s $360 a year!
Capital One SavorOne Cash Rewards Credit Card Review
The Capital One SavorOne Cash Rewards Credit Card is another great option. You’ll earn 3% cash back on dining, entertainment, streaming services and at grocery stores (excluding Walmart and Target). You also earn 1% cash back on all other purchases. There is no annual fee. New cardholders can earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening. The APR varies.
If you spend $400 a month on groceries, you’d earn $12 back monthly. That’s $144 annually.
Chase Freedom Flex℠ Review
The Chase Freedom Flex℠ card offers rotating bonus categories. One quarter may include grocery stores. You’ll earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Plus, you automatically earn 5% on travel purchased through Chase Ultimate Rewards, 3% on dining and drugstores, and 1% on all other purchases. There’s no annual fee. New cardholders can earn a $200 bonus after you spend $500 on purchases in the first 3 months from account opening. The APR varies.
If groceries are a quarterly bonus, maxing it out would give you $75 cash back. Spread throughout the year from other categories, this could be a lucrative card.
Factors to Consider When Choosing a Grocery Card
Picking the right card depends on your spending habits. Think about what you buy and your financial situation.
Your Average Monthly Grocery Spending
Track your grocery spending for a month or two. Add up all your receipts. Knowing your monthly average helps estimate potential rewards. A high spending level makes a high-reward card worthwhile.
Spending Habits Beyond Groceries
Consider other spending categories. Do you spend a lot on gas? Or dining out? Look for a card that also rewards those purchases. A card with broad rewards might be better than one focused only on groceries.
Credit Score and Approval Odds
Check your credit score before applying. A higher score increases your approval chances. It also gives you better interest rates. Most rewards cards require good to excellent credit. You can check your score for free through many websites and apps.
Maximizing Your Grocery Rewards
Maximize rewards to earn even more. Small changes can make a big impact.
Combining Rewards with Store Loyalty Programs
Join grocery store loyalty programs. These programs offer discounts and points. Combine them with your cash back card for double savings.
Rotating Category Bonuses
Take advantage of rotating category bonuses. Some cards offer 5% cash back in different categories each quarter. Plan your spending around these categories.
Using Shopping Portals
Check online shopping portals. Credit card companies often partner with retailers. These portals offer extra rewards for online purchases.
Alternatives to Cash Back Credit Cards
Other options exist if cash back cards don’t fit you.
Grocery Store Credit Cards
Grocery store credit cards are store-specific. They offer rewards only at that store. Rewards may be limited, but can be valuable if you’re loyal to the store.
Using Coupons and Discount Apps
Use coupons and discount apps like Ibotta or Rakuten. These can save you money on specific items. Combine them with store loyalty programs for extra savings.
Conclusion
Choosing the best cash back card for groceries requires thought. Consider your spending, fees, and the reward structure. Compare cards and make an informed choice. Maximize your savings and enjoy the rewards!
