If you haven’t searched for the best credit card for groceries, you should. You have to spend money on food for the rest of your life. If you can get rewarded for everyday purchases, you may as well. It’s not as simple as just picking out a card and collecting rewards. After all, you are still using a credit card. There’s a science to making sure you’re getting more rewards than you’re paying out.
What to Look for in the Best Credit Card for Groceries
Look for cards with low or no annual fees. Unlike airline rewards credit cards, it’s not the norm to have a sky high annual fee. If you have some credit challenges, you may run into a fee of $40 or less. A $90 fee wouldn’t be common and it wouldn’t make sense.
If you can get more cash back rewards than for groceries, that’s even better. There are other things you’ll always need. If you use a vehicle around the city, gas is one of those things. A card that gives cash back at gas stations is an excellent addition.
The less restrictions, the better. If you’re a single person, it doesn’t always make sense to buy in bulk. You also may want to buy groceries from more than one place. If the card doesn’t work for your preferences, don’t get sucked into it. There will always be more options and more changes.
The credit cards with grocery rewards are not like most credit cards for airline rewards. Fortunately for all of us, the ones for groceries don’t always come with heavy fees. It depends on your credit history and the benefits you want. Still, there’s a wide variety of options for consumers at all levels. Companies and their credit card rules change all the time, but here are the recent best credit cards for groceries.
Best Credit Cards for Groceries (Based on the Greatest Cash Back)
Blue Cash Preferred® Card from American Express
American Express continues to trump the competition in financial solutions. The best credit card for groceries is no exception. It’s almost unheard of to get 6% cash back on any purchases, let alone groceries. Outside of groceries, they also throw in 3% cash back for gas at U.S. stations. You can even get cash back at some department stores.
You’ll get that introductory 6% cash back for the first $6,000 you spend. After that, it drops to 1%. Unless you’re feeding a very large family, you won’t go over $6,000 in the first year.
The $95 annual fee is the highest of the grocery credit card choices.
SunTrust Cash Rewards Credit Card
This MasterCard packs almost the same punch as the American Express. Some may even like it a little better. They have the $6,000 introductory cap, but give 5% cash back. That’s still far above average, and you can get it back for gas too. After you reach the first $6,000, you’ll get 2% cash back. That’s double the American Express rate and still more than average. The best part of all with this card is no annual fee.
Not for the average credit score. Must have excellent credit.
Bank of America Cash Rewards™ for Students Credit Card
Students will benefit from loading their room with dorm snacks when they use this reward credit card. There are some generous introductory offers, and decent cash back after that. If you spend $500 in the first three months, you’ll get a $150 bonus. As far as cash back, you’ll get 2% on groceries for the first $2,500 you spend. Approval is lenient for students. They allow limited credit history with no annual fee.
Drawbacks: Must be a student to qualify.
SunTrust Secured Credit Card
There’s even a way for those with bad credit to get cash back rewards for groceries. The SunTrust Secured Credit Card gives 2% cash back for the first $6,000. After that, you can still earn 1% cash back. There’s no expiration on the rewards you earn. You get even more if you deposit your rewards to a SunTrust checking or savings account. They give you a cash bonus of 10% or more. This card gives good incentives to those working to rebuild their credit.
Drawbacks: Most secured credit cards require a deposit during the application. $32 annual fee.
Costco Anywhere Visa® Card by Citi
This card has a mix of cash back on a little of everything. You can earn cash back on club purchases, gas, groceries, and travel and dining. Cardholders earn 2% cash back on Costco purchases. You earn the most on gas at 4% for the first $7,000, and then 1% after that. For travel and restaurants, Citi gives 3% cash back. They even throw in a 1% reward for anything else you buy.
Drawbacks: Grocery cash back is strictly for club purchases. Must have excellent credit.
Are Credit Cards for Groceries Really Worth It?
There are several credit card offers with general cash back for any purchase. What makes having the best credit card for groceries worth it? If you do your research and find a good card, there are some differences worth having. The card with cash back for all purchases may be a lot less. It’s not often you see 5% or 6% cash back on those cards. You may also pay less in annual fees or no fee at all.
Most of us buy some form of groceries at one point during the year. The U.S. Department of Agriculture says we spend around 6% of our budgets on food. That includes groceries and dining out. What you spend on groceries may not be enough to dedicate an entire credit card. If you choose to eat out more than cooking, there are cards that gives more rewards for restaurants. For those who cook or want to start, having the best credit card for groceries is a great incentive.
You have some solid options to choose from. Now you just need to take the next steps. Look at your personal situation with credit and grocery spending. Compare the benefits of the cards to your wants, needs, and capabilities. Decide which card would be the best fit. All you need to do next is apply.
Apply for a Credit Card for Groceries
When you’re ready to apply for the best credit card for groceries, you know where to go. At Business Financing Hub, we help entrepreneurs make smart financial decisions. Apply for a credit card for groceries or find other credit solutions at BusinessFinancingHub.com.