If you like to make the most of your money, you’ll need a credit card that gives you the ability to both save and spend.
What is the best credit card to use when you buy groceries? The answer is hard to find, and even harder to find without getting into the nitty gritty of each credit card’s details. You want the best credit card, but you don’t want to read a list of details about each card’s perks. How do you know if a card has a generous grocery benefit? Do you need to sign up for a reward program? What is the annual fee and interest rate? Are there any other fees? Will the card be best for you if you’re a frequent grocery shopper?
Get the best credit card for groceries in 2021.. Read more about best credit card for groceries and let us know what you think.
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Groceries account for a major portion of most American families’ monthly budgets, so you’ll want to receive as much cash back or travel points as possible on your supermarket shopping. Fortunately, not only are there a slew of excellent credit cards for grocery shopping, but some also provide grocery-related benefits for a short period.
But, for now, which credit card is best for groceries? CNN Underscored has compiled a list of the best credit cards to use in the supermarket right now. The best card for you is determined by your requirements and purchasing habits, but don’t worry: there’s one for everyone.
The American Express Blue Cash Preferred® Card is the best for getting cash back at supermarkets in the United States. Best for travel rewards is the American Express® Gold Card. Best sign-up bonus: Chase Freedom Unlimited Anywhere Costco Citi’s Visa® Card is ideal for groceries and petrol. Best for Whole Foods and Amazon Fresh is the Amazon Prime Rewards Visa Signature. The Target REDCard is the best way to save money on groceries at Target. American Express Amex EveryDay® Credit Card: Best for travel rewards with no annual charge
CNN independently gathered all information on the Amex EveryDay® Credit Card from American Express. CNN does not currently offer the Amex EveryDay® Credit Card from American Express.
Why did we choose these as the best grocery credit cards this year? Let’s take a closer look at each of these cards and see how they stack up against one another.
If you spend more money at supermarkets than anyplace else, the American Express Blue Cash Preferred card is for you. Despite the fact that some other cards are now providing higher grocery rewards for a short time, this card will always provide you with a fantastic return on your supermarket purchases, 365 days a year.
For up to $6,000 in purchases each year, the Blue Cash Preferred card provides 6% cash back as a statement credit at U.S. supermarkets (then 1 percent cash back after that). There is no other card that gives you as much cash back on groceries on a regular basis, so this is the greatest card for putting money in your pocket.
Aside from the 6% cash back, the Blue Cash Preferred card also gives you 6% cash back on certain streaming subscriptions in the United States. You’ve probably increased these subscription services in recent years, so this is one method to save money in that area.
With the Blue Cash Preferred, you’ll also get 3% cash back at petrol stations and on public transportation in the United States. As your life returns to normal, they will likely become a bigger part of your monthly budget, thus this is an excellent card to utilize for them as well.
The Blue Cash Preferred earns cash back in the form of reward dollars, which can be redeemed for statement credits, making it simple to receive your money.
Paying an annual fee for the Blue Cash Preferred card beyond the first year may make sense depending on how much you spend on groceries.
Keep in mind that the Blue Cash Preferred has a $0 introductory charge for the first year, but a $95 yearly price after that (see rates and fees). However, if your family spends at least $6,000 per year in US supermarkets – an average of $500 per month — the yearly charge rapidly pays for itself.
If your food bills aren’t too large, the Blue Cash Everyday® Card from American Express may be a better option. The Blue Cash Everyday card has no annual fee (see rates and fees) and offers 3% cash back at US supermarkets (up to $6,000 per year, thereafter 1% cash back). That implies that after the first year, if you spend less than $3,166 on groceries, you’ll be better off with the Blue Cash Everyday rather than the Blue Cash Preferred.
Is it better to have the Amex Blue Cash Preferred or the Amex Blue Cash Everyday?
Get more information about the Blue Cash Preferred. Find out more about the Blue Cash Everyday program.
The American Express Gold Card is an excellent grocery card since it offers not just a high rate of return, but also some fantastic built-in perks. With a $250 annual charge (see rates and fees), it’s not a cheap credit card, but you may discover that the benefits exceed the cost.
With the Amex Gold, you’ll get 4 points per dollar spent at U.S. supermarkets (up to $25,000 in purchases per year, then 1 point per dollar), 4 points per dollar spent at restaurants worldwide, 3 points per dollar spent on flights booked directly with airlines or at amextravel.com, and 1 point per dollar spent on everything else.
Website for frequent flyers Amex Membership Rewards points are worth 2 cents apiece, according to The Points Guy. That means you’ll get an effective 8% return on groceries in the United States, which is the greatest overall return you’ll get on any credit card over time, even if other cards on our list are better for a short period.
Apart from earning a lot of points, the Amex Gold card also comes with a number of yearly statement credits. The up to $120 in meal credits is now the simplest to take advantage of. When you use your card to pay at certain retailers, such as Grubhub, Seamless, The Cheesecake Factory, Ruth’s Chris Steak House, Boxed, and selected Shake Shack locations, you’ll receive up to $10 in statement credits each month (enrollment is required before you use this benefit).
With the Amex Gold card, you may earn up to $120 in yearly meal credits if you buy frequently from Grubhub.
Because both Grubhub and Seamless are on this list, you may quickly use up these credits each month if you order out often. You’ll also receive $10 in Uber Cash per month with the Amex Gold, which you can spend for Uber trips in the US or Uber Eats delivery (enrollment required).
The American Express Gold card was reviewed by CNN Underscored.
More information about the American Express Gold Card may be found here.
If you spend a lot of money on groceries and don’t already have a Chase Freedom Unlimited credit card, now is a good time to get one. While the Freedom Unlimited is already a great no-fee credit card with potentially customizable rewards, Chase’s newly released sign-up offer makes it a no-brainer.
New Chase Freedom Unlimited cardholders may now receive $200 in extra cash back after spending $500 on purchases during the first three months of account opening. Additionally, if you apply for the card today, you may receive a stunning 5% cash back on your grocery store purchases (excluding Target and Walmart) in the first year, up to a maximum of $12,000 in spending.
You’ll also earn 5% cash back on travel purchased through Chase Ultimate Rewards, 5% on Lyft rides (through March 2022), 3% on dining at restaurants (including takeout and eligible delivery services), 3% on drugstore purchases, and 1.5 percent on all other purchases, in addition to the 5% cash back on groceries offered as part of the sign-up offer. As a result, even beyond the first year, you’ll continue to reap significant benefits.
Related: With this Chase Freedom Unlimited deal, you can get 5% cash back on groceries.
The Chase Freedom Unlimited offers 3% cash back at drugstores in addition to its other bonus areas.
However, if you want to get even more out of your benefits, there is a method to do so with this card. If you combine the Chase Freedom Unlimited with a premium Ultimate Rewards card, such as the Chase Sapphire Preferred Card or Chase Sapphire Reserve, you can convert your Freedom Unlimited cash back into Chase Ultimate Rewards points at a 1:1 ratio, then transfer the points to your premium Chase card.
Read our evaluation of the Chase Sapphire Preferred credit card on CNN Underscored.
You may redeem your points depending on the choices provided on your premium card after you’ve converted your rewards to points. That means you can use them at the Chase travel portal (where your points are worth between 1.25 cents and 1.5 cents with the Chase Sapphire Reserve) or with Chase’s “Pay Yourself Back” tool, which lets you redeem points for purchases you’ve made in eligible categories like grocery stores, dining establishments (including delivery and takeout), and more.
The Chase Freedom Flex is also a good choice if you want a card with quarterly bonus categories. The Freedom Flex offers the same sign-up offer as the Chase Freedom Unlimited, but instead of getting 1.5 percent cash back on all non-bonus category purchases, you receive 1 percent cash back and have access to a rotating selection of 5% bonus categories, as well as mobile phone protection.
Which is better for you: Chase Freedom Flex vs. Chase Freedom Unlimited?
Learn about about the Chase Freedom Unlimited and apply now.
There’s a high possibility you visit Costco if you prefer to purchase in bulk and save money in the process. If you drive often, you’re probably also spending a lot of money on petrol. For those who fall into this category, the Citi Costco Anywhere Visa Card may be a good choice for both grocery and petrol purchases.
You’ll get 4% cash back on qualifying petrol purchases (for the first $7,000 each year, then 1% afterwards), 3% cash back on restaurant and qualified travel expenditures, and 2% cash back on all other Costco and costco.com purchases with this card. This card does not have an annual charge, but it does need a Costco membership, which begins at $60 per year.
You’ll note that this card’s strong suit is really gas purchases. Yes, you’ll receive 2% cash back on groceries, but that’s just 1% more than CNN Underscored’s benchmark credit card, the Citi® Double Cash Card, which gives you 1% cash back when you buy anything and another 1% cash back when you pay it off.
Costco, on the other hand, only accepts Visa cards in its shops, thus the Citi Double Cash, as a Mastercard, isn’t a choice for in-store Costco purchases (though you can use it at costco.com, which accepts credit cards other than Visa).
The Costco Anywhere Visa card is a good option since Costco exclusively accepts Visa credit cards at its shops.
Purchase protection is another incentive to use the Costco Anywhere Visa apart from food shopping. If any item you buy with the card is damaged or stolen within 120 days of purchase, you’ll be protected under this benefit (90 days for New York residents). The coverage is valid for up to $10,000 per item and $50,000 per year, which is a high limit for a no-fee credit card.
The Costco Anywhere Visa Card was reviewed by CNN Underscored.
Learn more about the Costco Anywhere Visa Card and how to apply.
If you’re accustomed to ordering groceries via a delivery service, Whole Foods and Amazon Fresh are probably your go-to apps. Although you must be an Amazon Prime member to apply for the Amazon Prime Rewards Visa Signature card, it is a no-fee card that offers you 5% cash back at Amazon and Whole Foods, including Amazon Fresh delivery.
With the Amazon Prime Rewards Visa card, you can receive 5% cash back on goods purchased at Whole Foods.
Aside from the 5% cash back you’ll get on all Amazon and Whole Foods purchases (both in-store and via the apps), you’ll get 2% cash back at restaurants, petrol stations, and pharmacies. In addition, unlike some of the other cards on our list, there is no limit on how much cash back you may get for buying at Whole Foods or Amazon Fresh.
Related: Are you making Amazon purchases with the best credit card?
The Amazon Prime Visa card also comes with purchase protection, which protects you up to $500 per claim and $50,000 per account for damage or theft during the first 120 days of your purchase. Although this advantage isn’t significant for food, it may be useful for other Amazon purchases. Keep in mind that if you’re spending more than $500, you may want to look at a different card with higher protection limits.
Learn more about the Amazon Prime Visa card and how to apply.
The Target REDCard should have a special place in your wallet if you shop at Target and purchase groceries there as well. With this card, you’ll enjoy a 5% discount on almost all Target purchases right away. There’s no need to wait for cash back or a rewards certificate since when you use the Target REDCard at checkout, the amount you pay will be immediately lowered by the discount.
One thing to keep in mind is that the Target REDCard is a “closed-loop” card, meaning you can only use it at Target – in-store or online — and nowhere else. Target, on the other hand, offers a lot of third-party gift cards for other shops and restaurants, and you can receive a 5% discount on such purchases. This potentially entitles you to a 5% discount at a variety of other retailers.
With the Target REDcard, you can save 5% on almost everything you purchase at Target.
Aside from the 5% discount, the Target REDCard comes with a number of additional benefits. Cardholders, for example, get a 10% discount voucher once a year that may be utilized during a single Target shopping trip. You’ll also receive free shipping on most goods purchased at target.com without having to meet the normal $35 minimum.
In previous years, cardholders were also entitled to additional exclusive Target discounts and promotions. There’s no way of knowing what deals we’ll see this year, but the Target REDCard usually has a lot of ways to save money.
The Amex EveryDay Credit Card may be a good match if you want to earn points and miles to redeem for travel but don’t want to pay an annual fee. It gets 2 points for every dollar spent in US supermarkets on purchases of up to $6,000 each year (1x thereafter). After you use your card 20 or more times on purchases in a billing month, you’ll get a 20% bonus on all points earned.
The points earned on the Amex EveryDay are American Express Membership Rewards points, which may be redeemed for up to 1 cent per point through Amex Travel or transferred to any of Amex’s 21 airline and hotel partners for potentially much more value. Because The Points Guy rates Amex points at 2 cents each, if you use your card 20 times or more each billing cycle, you’ll earn 2.2 points per dollar spent at U.S. supermarkets, giving you a 4.4 percent return.
If you purchase a lot of groceries, you may find that having the American Express Amex EveryDay® Preferred Credit Card is a better choice. Despite the fact that the EveryDay Preferred card has a $95 annual fee, you’ll get 3 points for every dollar spent in U.S. supermarkets (up to the same $6,000 per year limit, then 1 point afterwards).
After you use your card 30 times or more on purchases in a billing month, you’ll get a 50% bonus on all points earned, which means you’ll get 4.5 points per dollar on those U.S. grocery transactions. Another advantage of the Amex EveryDay Preferred is that you will get 2 points every dollar spent at petrol stations in the United States.
It comes down to your monthly budget in these two areas to determine if the Amex EveryDay or Amex EveryDay Preferred is appropriate for you. Paying an annual fee may be worthwhile if the value is high enough. If not, stay with the card’s no-annual-fee variant.
The Blue Cash Preferred Card from American Express is your best option — always — if you want a credit card that optimizes your cash back on groceries. If you’re more interested in collecting travel points for future trips, the Amex EveryDay and Amex Gold cards are both excellent options for earning rewards year-round. Alternatively, the Chase Freedom Unlimited, with its current sign-up bonus, may blow the competition out of the water for the first 12 months after you establish the account.
However, you should bear in mind that buying at specialized shops, superstores, and warehouse clubs will not earn you extra points. If you don’t shop at supermarkets much, you should look at store-specific credit cards like the Costco Anywhere Visa for Costco, the Amazon Prime Rewards Visa Signature for Whole Foods and Amazon Fresh, or the Target REDCard for Target.
The Blue Cash Preferred card’s rates and fees may be seen here. The Blue Cash Everyday card’s rates and fees may be seen here. The Amex Gold card’s rates and fees may be seen here.
Are you looking for the finest all-around credit card? Find out which credit cards CNN Underscored selected as the best in 2021.
CNN Underscored Money has the most up-to-date personal financial offers, news, and advice.
The credit cards in the “Best Credit Cards For Groceries” section of the onlineinterviews.com website are full of information that can help people make money and save money when they shop at the grocery store. These cards allow the cardholder to make purchases at the grocery store with cash back and points.. Read more about best credit card for groceries reddit and let us know what you think.
Frequently Asked Questions
What Chase card is best for groceries?
The Chase Sapphire Preferred Card is the best card for groceries.
Should I get a credit card for groceries?
It is always a good idea to get a credit card, but it is not necessary. You can use your debit card for groceries and other purchases.
What credit card does Instacart use?
Instacart uses a variety of credit cards, including Visa, MasterCard, American Express, and Discover.
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