A trip to the grocery store is a lot more expensive these days. Indeed, as inflation rose, grocery prices increased 11.8% over the past year, according to the Bureau of Labor Statistics. But there is a good way to offset these major price hikes: choosing the right credit card, and using it smartly.
Indeed, some credit cards offer up to 5%-6% cash back on groceries, which could save you hundreds of dollars or more each year. Of course, you have to pay your bill in full and on time to reap the benefits, and we have a list of what to consider before you get a grocery rewards card below. Here are the 10 best grocery store rewards cards — that offer the most points, cash back and benefits for food shopping.
Chase Sapphire Preferred® Card
Earn 3 points for every $1 spent at grocery stores, excluding Target®, Walmart® and wholesale clubs, as well as dining at restaurants and select streaming services. Earn 1 point for every $1 on all other purchases.
- Pros
- 60,000 bonus points after new members spend $4,000 in the first 3 of opening an account
- 10% anniversary bonus on your total spend in points from the prior year
- No foreign transaction fee
- No return check fee
- Cons
- $95 annual membership fee
- Late payment and return payment fee of up to $40
- Balance transfer fee of $5 or 5%
- Cash advance fee of $10 or 5%
What to look for
If you don’t pay your balance in full and on time, don’t go chasing rewards, pros say; you’ll pay far more in interest on that debt than you’ll gain in rewards typically. However, if you do pay your balance, rewards can financially benefit you.
“Shopping around makes a huge difference when choosing a rewards credit card,” LendingTree Chief Credit Analyst Matt Schulz says, adding that “there are just so many different flavors of card out there that if you don’t look around a bit, you’re most likely going to be leaving money on the table.”
Finding the right credit card for shopping at the supermarket really just depends on your personal needs, says Leslie H. Tayne, financial attorney and consumer finance expert, Tayne Law Group. “Ask yourself, ‘What is this card going to do for me? What’s it going to cost me to reap those benefits?” Tayne says, adding that “the bottom line is if you aren’t strategic about selecting your rewards credit card, you could end up with an account that doesn’t add much value to your life.”
Shultz agrees that not only is a strategic approach for grocery store rewards critical to saving money, you also have to put the work in. “The truth is that most people don’t want to work very hard at getting rewards,” he says. “They just want to get a good return and not have to think about it all that much. That’s why for most people the best card is a no-annual-fee cash-back card that gives you 2% back on everything.”
For those who are willing to put in the work, Tayne says there are a number of potential redemption options when it comes to the lineup of the best credit cards for grocery store shopping today. She says some offers can include “statement credits, cash deposits to a linked bank account, gift cards, and travel reservations,” adding that “rewards credit card holders expect to be able to redeem their rewards easily and have multiple redemption options.”
Other considerations
Just about every credit card offer these days comes with a catch. Whether it be annual membership fees, transfer fees or rewards caps, NerdWallet credit cards expert Melissa Lambarena says it really just comes down to what you’re comfortable with paying. “An annual fee on a credit card can be worth paying if it offers perks or rewards that can easily offset the cost, but you don’t necessarily need to pay one to find a valuable option,” she says.
In addition to credit card rewards, Lambarena says to look for opportunities to stack rewards, if possible. “For instance, you might be able to sign up for a grocery store’s loyalty program to earn rewards and pay with your rewards credit card for twice the value,” she says. “Along with these options, you can use apps like Ibotta or Fetch Rewards to earn additional rewards on qualifying purchases.”
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