Saving money as you use your credit card is always a good thing – and even if you do sometimes pay a little interest, at least a rewards card can effectively reduce how much you pay after the cashback is factored in. The best cards for cash rewards are those that connect your savings to products you buy every month – that includes gas, dining out, and buying groceries.
But what is the best credit card for groceries? There are many options available today, and that can make it a bit confusing. But here is some guidance on how to find the card that will save you the most!
Defining The Best Credit Card For Groceries
Looking for the best credit card for groceries? First, you have to define exactly what makes a credit card “best.” Having low or no annual fees, the ability to avoid interest by paying off your balance each month, a competitive APR, acceptance of bad credit applicants, and a slew of other basic, desirable credit card features is obviously still important.
But all other things being equal, a “grocery card” needs to save you the most money on groceries from month to month. That’s the bottom line. That said, there are a variety of ways to save, and the same card may not be best for each individual or family.
Below, we will look at three basic categories of grocery cards based on the way you shop for food each week.
1. Cards For Shopping At Just One Grocery Store
There are many store cards available that give you relatively big savings so long as you buy your groceries (and other items) in that particular store. One of the best of these is the Target REDcard, which gives you 5% cashback and the possibility of 10% back if you start getting your groceries delivered to your home.
Sometimes, you might be able to get 2% or even 3% back on non-store cards. But 5% is rare except for with store credit cards. Thus, if you like shopping for groceries at a particular store anyway, you have nothing to lose and everything to gain by choosing that card.
2. Cards Better For Shopping At Multiple Stores
If you can get approved for it, the American Express Blue Cash Preferred Card is great for shopping for groceries at multiple stores – it gives you a whopping 6% cashback and is the exception to the rule.
Otherwise, there are plenty of other cards that offer 3% or at least 2% back, while avoiding complicated “points” systems.
Another thing to consider is having a credit card that is good all around. For example, the Capital One Savor Cash Rewards Card gives you 4% back on dining and 2% back on groceries. That kind of compromise might work well for those who don’t want their wallets full of 4, 5, 6 different credit cards.
3. Credit Cards For Online Grocery Purchases
In this day and age, online shopping for groceries – either to be delivered or picked up at the store, is rapidly becoming mainstream. In this category, you would want to consider the Amazon Prime Rewards Visa Signature Card, which gives you 5% back on most online purchases – including groceries from providers like Whole Foods Market.
The WalMart Credit Card is also relevant in this space. It gives you only 1% cashback on in-store grocery purchases but 3% back if you order online (even if you later pick it up.)
Of course, this is only the tip of the iceberg when it comes to your options. Using the powerful search engines at Bonsai Finance will make the search for your best credit card for groceries faster, simpler, and more effective!