Using cash back credit cards for groceries is often frowned upon due to the high levels of interest associated with credit cards. However, the best usage of credit cards revolves around only spending what you can afford to spend and paying off your credit card balances each month to avoid paying interest. If you use your credit cards that offer cash back at supermarkets then this is an excellent way to save money at supermarkets. Not only do these credit cards offer the opportunity to save money at supermarkets, you can also earn rewards on your other every day purchases.
Should you use a credit card for groceries?
Using a credit card for groceries is not inherently a bad idea. It’s really all about how you use your card and whether or not you are using your credit responsibly. If you’re using your credit cards to build your credit and paying your bill in full every month then it’s a smart idea to use it to buy your groceries as this will be a way you can build credit, save money on your groceries and ultimately save money on other non-grocery purchases as well.
Which credit card gives the most cashback on groceries?
Currently the Blue Cash Everyday Card from American Express is one of the best credit cards for purchasing groceries. Not only will you earn 3% cash back on your first $6,000 in purchases, you will also receive a cash back bonus of $200 by making $2,000 in purchases within your first 6 months of owning the card.
With inflation per year hovering around 2.3 to 2.7 percent then credit cards offering unlimited cash back on supermarket purchases can act as a hedge against yearly inflation. With some credit cards offering as much as 5% cash back on supermarket purchases the cash back equates to additional discounts on your supermarket purchases. Combined with coupons, and 2 for 1 sales at supermarkets like Publix this can lead to significant savings on your grocery purchases. Of course, it’s best to use cash back credit cards with no annual fee as well to avoid additional costs to your grocery bills.
There are different ways you can earn cash back when shopping for groceries depending on what credit card you use. Some cards such as the Discover It card offer cash back at only certain supermarkets. Other cards like the Apple Pay card will pay you 2% cash back unlimited at supermarkets as long as you pay using Apple Pay. The best cards will let you maximize your cash back shopping at supermarkets all year round. While many cards will offer specific cash back percentages on all of your purchases, we’ll be focusing on credit cards which focus specifically on supermarket purchases. Below you’ll find a round-up of credit cards that offer cash back buying groceries and which ones are the best.
What credit cards are best for buying groceries?
- Blue Cash Everyday Card from American Express offers rewards for everyday purchases. Currently offering $200 cash back if you spend $2,000 on purchases within the first 6 months of owning the card and 0% APR on purchases and balance transfers for the first 15 months this card can help you save a lot of money on your grocery purchases, especially in the first year. At supermarkets they offer 3% cash back on eligible purchases up to $6,000 a year and then 1% cash back after that. Spending $1,000 on groceries in year will give you $30 cash back and if you reach the $6,000 threshold you will earn $180 cash back plus a $200 bonus the first year depending on your card usage.
- Amazon Prime Visa credit card is Amazon’s offering where you can earn a ton of cash back on your purchases. This card gives you 5% back on purchases from Amazon.com, 5% cash back on purchases from Amazon Fresh and 5% cash back on your Whole Food Market purchases. While Whole Foods prices can be generally higher than prices at typical supermarkets having an Amazon Prime membership saves you money on groceries at Whole Foods as they often offer discounts on your in store purchases. The discounts offered along with the 5% cash back you’ll receive makes this one of the best credit cards you can you when purchasing your groceries.
- Costco Anywhere Visa Card by Citi helps your money go even further when you shop at Costco. Costco already offers bulk grocery purchases at huge discounts so you’ll already be saving money anytime you shop at Costco. You’ll always pay about 20 cents less per gallon on gas if you purchase your gas at Costco’s gas stations. Along with these benefits you’ll receive 4% cash back on eligible gas and EV charging cost, 3% cash back on restaurants and eligible travel and 1% cash back on all other purchases. While not specifically supermarket focused you’ll earn 2% cash back on purchases from Costco and Costco.com which includes plenty of bulk groceries that are sold are Costco.
- Bank of America Customized Cash Rewards card offers rewards in different categories including on gas, online shopping, dining, travel, drug stores or home improvement furnishings. Although you can get cash back in different categories you choose which category you’d like to receive 3% cash back in out of the previously mentioned categories via the online banking website or mobile banking app. When it comes to grocery stores and wholesale clubs you are guaranteed to earn 2% cash back on the first $2,500 worth of groceries and thereafter 1% cash back for the year. If you reach the preferred rewards tier, you can increase your cash back at grocery stores and wholesale clubs to 2.5% to 3.5% and then 1.25% to 1.75% after you surpass $2,500 in spending.
- Target Redcard Credit Card is Target’s credit card offering and while you will not receive cash back on your grocery purchases you will save 5% every day on your grocery purchases at Target. Using the red card also get you free shipping on most Target items, 30 extra days for returns and you can use your 5% Red Card discounts along with Circle Offers and Target Subscription savings. If you’re a new user and you can save $40 off your purchases immediately upon approval.
- The Chase Freedom Flex Credit Card is one of two credit cards that Chase offers under the Freedom moniker. Although both card offer cash back rewards on purchases only the Chase Freedom Flex credit card specifically offers cash back rewards on grocery purchases. Currently the credit card is offering low introductory APR to new customers. If approved for this card you’ll receive 0% intro APR for 15 months upon account opening. You’ll receive 5% cash back on travel purchases through Chase Ultimate Rewards, 3% cash back on dining at restaurants, including take out and certain delivery services, 3% cash back on drug store purchases and 1% cash back on all other purchases. When is comes to rewards on grocery purchases Chase also 5% cash back but only during certain quarters throughout the year. Currently from January through March you’ll receive cash back at Grocery Stores (excluding Walmart), at Target and at Fitness Clubs & Gym memberships. The only caveat being that the 5% during the quarter is only up to 1500 dollars. Thereafter you’ll receive 1% cash back on your purchases.
- TD Cash Credit Card allows you to choose which categories you’d like to earn either 3% or 2% cash back on your purchases throughout the year. The categories you can choose from can be changed each quarter, or you can keep the same categories throughout the year. Your 2% and 3% cash back categories can earn unlimited cash back during the year allowing you to earn unlimited 3% cash back on all of your grocery purchases during the year. Along with the 3% and 2% categories you can also earn 5% cash back on gas purchases for 6 months or up to $6,000 in spend on gas. The card offers more benefits as well to new cardholders. Currently you can also earn up to $150 cash back by spending $500 on the card within the first 90 days of opening your account. You’ll also receive 0% introductory APR on balance transfers for the first 12 billing cycles and then between 19.99%, 24.99% or 29.99% APR on balances transfers depending on your credity worthiness.
- PNC Cash Rewards Visa Credit Card is PNC’s bank offering with supermarket rewards. Not only will you earn rewards on your supermarket purchases, the card also provides rewards in other categories as well. While the rewards are greater in categories other than supermarket purchases you can still earn 2% cash bank rewards on the purchases you make at supermarkets. In other categories you can earn 4% cash back on gas station purchases, 3% cash back on dining purchases at restaurants, and 1% cash back on your other purchases. Currently PNC Bank Visa Rewards offers a bonus of $200 after you spend $1,000 or more on purchases during the first 3 billing cycles following you opening an account. Other offers included 0% APR on balance transfers for the first 12 billing cycles.
- USAA Cashback rewards Plus American Express Credit Card while only available to members of the US military is another card which offers rewards on supermarket purchases. Aside from offering 2% cash back on your first $3,000 in grocery purchases every year and then 1% cash back thereafter you can received 5% cash back on your first $3,000 in combined gags station and military base purchases year. There is no cash back bonus offered however you can get 0% intro APR for 15 month on balance transfers and convenience checks.
- U.S. Bank Altitude Go Visa Signature Card doesn’t directly give you cash back, however you do earn points when spending on this card which can be redeemed towards merchadise, gift cards, cash back, travel and more. Your points on this card never expire and you’ll never pay foreign transaction fees when using this card. Categories such as dining, takeout, and restaurant delivery will give you 4X points while purchases at grocery stores, grocery delivery, streaming services, gas stations and EV charging stations will give you 2X points. You’ll receive 1X points on all other eligible purchases. This card is currently offering a bonus of 20,000 bonus points when you spend $1,000 in the first 90 days of owning the card which is a $200 cash back redeemable award. If you spend $500 a month on groceries then you can earn $320 cash back your first year of owning the card.
How to use credit card at grocery stores?
In conclusion you should use your credit card at grocery stores if they offer cash back or points towards your purchases. You should only use it in a responsible manner when you’re not carrying a balance and when you’re using the card to build up your credit score. Additional advantages include purchases you make in other categories which may offer higher cash back percentages and bonuses offered when you first own your card.
When taking all of these things into account you can save money each year allowing you to stretch your dollar further than you would otherwise if you were buying your groceries with cash instead of with your cash back reward credit cards on groceries.