Find the best credit card for groceries in 2020
choose from our top picks below
You have a large family. Your grocery bill amounts to hundreds of dollars per month. Also, you discover that your grocery budget has increased over the months. You’re looking for ways to tighten your budget. You cannot reduce the amount of food that you purchase, as you have several small children and a teenager that all love to eat. You begin thinking about the best credit cards for groceries. The problem is that there are so many to choose from. You also don’t have the greatest credit. Do you have options?
Even though common cards for groceries normally have high credit requirements, you can still get a great card with a score in the 670s. Some cards for grocery purchases include Blue Cash Preferred, Amazon Prime Rewards, Target Redcard, Chase Freedom Card, among many others. However, some of these cards have some cons in the form of hefty fees or high APRs. This article will provide a comprehensive guide into some options for credit cards that can help you save money on grocery bills. Let’s explore.
Blue Cash Preferred
This is a great card if you enjoy shopping at different stores, especially if you prefer picking up your groceries. The Blue Cash Preferred from American Express offers 6% cashback back on every purchases you make up to $6,000. Additionally, you can get cash-back on the following purchases:
- 6% cashback on certain U.S. streaming platforms
- 3% cashback on transit and gas stations
- 1% cashback on all other purchases
Within the first three months, you’ll also receive a $300 credit statement when you spend more than $1,000. Moreover, you can earn more rewards with the Additional Card Member option that accumulates more rewards.
You’ll pay an annual $95 for the account itself. Also, you can create a payment option for bigger purchases under the Plan It Program. When it comes to cons, the card comes with an annual fee. However, you can waive the fee if you spend over $31 each week. This card also derives from American Express, and many merchants don’t accept this card as a viable payment method. The card also comes with a $25 minimum.
Blue Cash Everyday
This card also comes from American Express, and it is the most suitable for the average grocery shopper. It’s also not as rewards-heavy as the Preferred program, but it offers some special perks. It offers bonuses for new cardholders, and the card doesn’t come with an annual fee. It also has a 0% APR introductory period. When it comes to rewards, you’ll get 3% cash-back at grocery stores, up to $6,000 annually. In addition, you can take advantage of 2% cash-back on select department stores and gas stations. From there, you can earn 1% cashback on all other purchases. The card also offers $200 in credit statements when spending $1,000 in the first three months of opening the card. Best of all, you don’t have to wait on your card in the mail to use it if you’re eligible for the Instant Card Number program. With that, you must also contend with the same $25 minimum as the Preferred card. Merchants may also reject the card because it’s from American Express.
Amazon Prime Rewards Visa Signature
If you prefer online grocery shopping, the Amazon Prime Rewards program ensures that you accumulate rewards points even when you shop from home. It offers 5% cashback on Amazon, including grocery delivery options from Whole Foods Market and Prime Now. For every penny you spend, you’ll get a point, amounting to 100 points for every dollar you spend. You can redeem your points on Amazon via Chase Bank to get cashback. You can also use those same points for travel or to get a gift card. Further, the card offers 2% cash-back on restaurants, gas stations, and drugstores. Note: Whole Foods delivery is only available in select cities, but the service is expanding nationwide. However, you can earn rewards points when you visit a Whole Foods Market physically.
You can also log onto Chase.com to see your accumulated points. Also, your points will not expire as long as you maintain your account. Best of all, you don’t have to contend with earning limitations and point thresholds.
There are some notable cons, such as no transfer options on your rewards points. Additionally, the card can only connect to a single Amazon Prime account to receive the 5% rewards.
Capital One Walmart Rewards
If you spend more of your shopping time at Walmart instead of Amazon, this card will help you save money in the long-term. It offers 5% cash-back at Walmart, in addition to Walmart.com and its grocery delivery service. With that, this card comes in two forms:
- Walmart Rewards Card: This card mostly pertains to Walmart stores alone. However, you can also use this card on the website and the app, including gas stations. You can also use this card at Sam’s Club.
- Walmart Mastercard: This is the card mentioned on this list. Due to the Mastercard logo, you can use this card at any place that accepts Mastercard.
If they reject your Walmart Mastercard application due to credit concerns or other factors, they’ll consider you for the Walmart Rewards program instead. However, the Mastercard option does have its drawbacks, most notably the high APR that can range from 17.99% to 26.99%. You’ll also receive no introductory APRs. The card also restricts your ability to redeem your cash in the form of a deposit or check.
American Express Goldcard
With this card, Membership Rewards Points are one point for each dollar charged on eligible purchases. You can earn 4x points when you go to restaurants anywhere in the world and at US supermarkets (up to $25,000 per calendar year). Further, you’ll get 3x points on air travel. Overall, you can amass 35,000 points within the first 3 months when you spend $4,000 or more. It’s among the best programs for shoppers, but it carries a hefty annual fee of $250. You also don’t get an introductory APR. Additionally, this is a charge-based card, meaning that you must pay the full balance before every billing cycle.
Costco Anywhere Visa Card
This is a great option if you’re a bulk shopper. On one hand, you can get 2% cashback on all purchases you make at Costco. Those who are Costco Executive members can receive an added 2% on certain purchases up to $1,000 over 12 months. You can receive the 4% on eligible gas reward on the first $7,000 annually and 1% thereafter. Regarding restaurants, you can also earn 3% whenever you eat out. If you want to get the additional 2% cashback, a Costco Executive membership will cost $120 annually. A basic membership plan will cost $60. To determine if the membership dues make financial sense to you, you can also use a grocery calculator to see if a Costco membership option is the right choice for your budget.
Citi Double Cash Card
This card ranks consistently among the best grocery credit cards in terms of flat rates and cashback rewards. You can earn 2% on every purchase, including 1% when you buy other items. Moreover, you get an additional 1% cash back reward when you pay your balance off. There are some negatives, as there are no signing bonuses or an 0% introductory APR.
The Target Redcard
Even though this card is specific to Target alone, it can help you save money if you’re a frequent Target shopper. In addition to 5% savings on all Target purchases, you can also enjoy the same savings on grocery items. Since many Target stores offer the same grocery items as any other supermarket, you can save money on everyday food items.
The Target savings plan offers other perks, such as:
- 5% savings on online purchases
- An additional 5% savings when you sign up for Target grocery delivery surface, bringing your total savings to 10%
- Two-day shipping with no minimum purchase requirements
- Further, you can enjoy 0% APR for the first 15 months.
- The Target Redcard also comes with no annual fee.
However, there are some drawbacks that may be a dealbreaker to some. First, you cannot use this card at any other store. Additionally, you’ll deal with variables on the APR. The APR falls around 20%. In addition, the card comes with foreign transaction fees.
Chase Freedom Card
This card offers $200 cash-back when you spend $500 during the first three months. For each quarter, you’ll receive a 5% cashback on your first $1,500. Example: A quarter could be from April to June. The card also allows you to utilize 1% savings on other purchases in perpetuity. The card also provides various bonus categories, and a grocery category is among them.
Credit Cards for Groceries Overall
Overall, the right credit card for groceries depends on such factors as where you shop and your budget constraints. Credit cards that help you save grocery money yield high rewards, but even the best rewards cards come with drawbacks. When shopping for the best grocery credit card for you, look for such factors as high APRs and/or minimum withdraws.
Walmart, Whole Foods, and Target offer stellar rewards programs for shoppers. It’s also worth noting that many of these cards require a higher credit score. However, you can find a decent grocery credit card if you have a mid-grade credit score. Are you trying to qualify for a credit card? Click here to learn more about what it takes to get a credit card.
The Latest in Credit Cards
The month of March brought a load of unanticipated turmoil to the United States with a record of 6.6 million Americans filing for unemployment benefits due to the spread of COVID-19. Even with a lot of budgeting and saving, it may be difficult to recover from the...
I’ve been studying the credit card industry and writing about it for over 10 years. And while I’m not approaching retirement, I’ve often asked to help retired friends, family members, and readers with their credit cards. Can you keep your credit cards when you retire?...
Credit card rewards represent the closest thing to extra “free” money that most of us will ever see. Head to the store, whip out your favorite rewards credit card to pay, and earn airline miles, hotel points or cash in your bank account once you pay your bill....
In 2019, Apple announced a new product, and it’s not an iPhone, iPod, or iPad. It’s also not a smartwatch, a smart speaker, or even a smart TV. The newest Apple product isn’t any kind of device at all – it’s a credit card. Apple Card – What exactly Is It? The Apple...
Whether you’re shopping for your first house or you’ve already settled in, here’s something you need to know: You’re going to spend a ton of money, especially in the first year. You’ll want to make the house your own, maybe even changing the color scheme among other...
Getting credit card offers in the mail or online doesn't guarantee that you'll be approved for a card. To get a credit card in your name, you must meet a basic set of qualifications. Other requirements vary by card, and they'll generally get tougher as you move into...
Are you fretting over a high credit card balance that's taking forever to knock down? If so, you might be able to create a little breathing room by stretching out payments and saving money on interest with a credit card balance transfer. With a balance transfer, you...
Building your credit history is an essential part of personal finance. Without a good credit history, you can’t develop a good credit score. Without a good credit score, you’ll pay higher interest on mortgages, auto financing, and other loans, and be limited to more...