Which Rewards Card Should I Use at the Grocery Store?ReviewAdvice

Which Rewards Card Should I Use at the Grocery Store?

The easiest way to rack up a ton of points and miles is to use your favorite rewards credit card for your everyday expenses. You know what I'm talking about- things like trips to Starbucks, gas for your car, and on-the-go snacks.

And let's not forget the family grocery bill. According to figures provided by the USDA, the average food bill for a family of four can run upwards of $1,047 per month. Imagine how many points and miles you could rack up if you put that kind of spending on your card each month. (Hint: A lot) On the other hand, it's important to remember that all rewards credit cards are not created equal. Want to know how to get the most bang for your buck with a grocery store credit card?

These three cards are probably your best bet:

American Express Blue Cash EveryDay

When it comes to grocery store spending, the American Express Blue Cash EveryDay card is hard to beat. That's because the card currently offers 3% cash-back on the first $6,000 you spend at the grocery store every year, in addition to 2 points/$1 spent at gas stations and select department stores, and 1 point/$1 spent everywhere else.

The grocery store benefit alone is worth at least $180 in cash back, but that's not the only perk that comes with this card. In addition to having no annual fee, it also offers a $100 sign-up bonus after spending $1,000 within 3 months of account opening.

Which Rewards Card Should I Use at the Grocery Store?

Bank Americard Cash Rewards

Even though Bank of America isn't prominent in the world of credit card rewards, they do offer a great deal for grocery store purchases with the Bank Americard Cash Rewards Card. The deal is this: Simply spend $500 within the first 90 days of account opening and earn $100 in cash-back. In addition to the bonus, you'll also earn 2% cash-back at grocery stores and 3% cash-back on gas on the first $1,500 in combined grocery and gas purchases each quarter. The card comes with no annual fee and also earns 1 point/$1 spent on additional purchases.

Target REDcard

Do you do the majority of your grocery shopping at Target? If so, you might want to consider signing up for the Target REDcard in order to maximize your cash-back rewards. However, unlike regular credit card rewards, the Target REDcard pays your bonus up-front by taking the rewards directly off of your shopping total. But, how much do you get?

Currently, the Target REDcard offers 5% off all Target and Super Target purchases, and he offer is not limited to groceries. The Target REDcard also comes with no annual fee and an additional 30 days on all returns to Target stores.

Earning Cash-Back at Grocery Stores

Let's get back to the average monthly food budget for a family of four, shall we? Remember that $1,047 the USDA says the average family spends each month? Let's say you signed up for two actual rewards credit cards I mentioned, one after the other of course. Here's what you could earn simply by using the American Express Blue Cash EveryDay and Bank Americard Cash Rewards card:

American Blue Cash EveryDay

  • $6,000 in groceries with 3% cash-back: $180
  • Signup Bonus: $100
  • Total: $280
Which Rewards Card Should I Use at the Grocery Store?

Bank Americard Cash Rewards

  • $6,000 in groceries at 2% cash-back: $120
  • Signup Bonus: $100
  • Total: $220

In case you aren't keeping track, the benefit of those two cards alone is a staggering $500. And remember, that's just for using the cards for your regular grocery spending. No crazy terms. No hoops to jump through. The strategy is as simple as it gets, which is exactly how most people like it.

If you're the shopper of your family and want to be rewarded for all you do, consider signing up for one (or all) of these cards today.

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