Best Grocery Credit Card
Grocery store credit cards can be a great tool to have on hand if a large portion of your monthly expenses come from supermarket trips and other routine purchases. Some of the top rated grocery store credit cards offer some pretty neat perks.
These benefits are quite wide ranging and include the ability to rack up rewards points, online shopping tools, cash back deals, and much more. Select offerings even include online tools to keep track of and budget expenses.
Be sure to check which APR you qualify for before signing up for any grocery store credit card.
Grocery Store Credit Cards: What to Consider
Keep these factors in the back of your mind before making a decision as to which card to get. A great grocery credit card will have the following characteristics:
Cash Back Rewards - Explore the different offerings from the provider and determine which specific retailers they partner with. Choose a grocery card that grants you cash back and if possible, a signing bonus. Keep in mind, however, that if you don't frequently shop at their affiliates or don't think you would benefit from their perks then it may be better to consider a different type of rewards card.
Low APR - The annual percentage rate offered is highly dependent on your personal creditworthiness and other facets of your history. As these often change, check directly with the individual card provider.
Comprehensive Customer Support - Telephone and live chat support are critical for up-to-date inquiries.
BBB Rating - Look for a company that has a high BBB rating. The Better Business Bureau rates institutions on a variety of factors including client satisfaction, business protocol, and compliance with legal laws and regulations.
Fees - Balance transfer, cash advance, and late fees are just a handful of the ones to look out for when deciding which grocery credit card to select.
Extra Features - Review the extra features offered like mobile banking, bill pay, and alerts.
U.S. Bank Cash Visa Signature
- Bank with a trusted reputation
- Choose cash back categories each quarter
- Zero fraud liability
- Fraud protection
- Automatic bill pay
- Requires close to excellent credit
Unlike some other grocery rewards cards, there is no limit on the total cash back you can earn which means the possibilities are endless. The benefits don't end there though! You'll have no minimum redemption which means you can redeem your cash back whenever you want and in the amount of your choosing when redeeming to a checking, savings, or statement credit. You have zero fraud liability for unauthorized transactions if your card is ever lost or stolen, and a feature known as fraud protection which detects immediately any card activity that's seems suspicious or out of the ordinary.
A couple more advantages of signing up for this card include the travel accident insurance which is automatically $1,000,000 minimum for any tickets purchased by you or your family member and lastly you'll receive a free Experian credit score at no extra charge.
The Annual Percentage Yield (APR) does vary depending on your credit history and a number of other factors which fluctuate on a case-by-case basis. For an up-to-date and accurate figure it's best to check with U.S. Bank directly.
Verdict - Superb
This card stands out for its range of offerings and unlike other credit cards it is flexible in its "bonus" categories. U.S. bank is BBB accredited which indicates they've met stringent standards and have addressed consumer complaints. You won't pay an annual fee to carry this card in your wallet and you'll reap the rewards of shopping at your favorite locations. The largest drawback about this card is that you need near perfect credit to qualify or be approved.
- Two points for every dollar on groceries, utilities and gas
- One point for each dollar spent on other purchases
- No annual fee
- Zero fraud liability
- Travel insurance
- Need fair to average credit
- 3% foreign transaction fee
- 4% or $10 balance transfer fee
Barclaycard, a division of Barclays Business Banking establishment since 1966, offers a top tier Rewards MasterCard. Get two times the points for every dollar you spend on groceries, gas and other routine purchases. For all other purchases, you get one point per dollar and can redeem all of these rewards for trips, shopping, or even towards purchases you've already made. Barclaycard has partnerships with over sixty retailers including entertainment and retail organizations. Be aware that these rewards are defined by specific merchant category codes and large wholesale-type stores like Costco and Sam's club are excluded from the program. In terms of fees, there is no annual fee; however, this card has some other fees worth mentioning. It has a 4% (or $10) balance transfer fee, 5% (or $10) cash advance fee, and 3% foreign transaction fee. For late payments, you could receive up to a $35 penalty and the same goes for returned payments. On the bright side, however, there are no blackout dates and no cash back limits! You'll also benefit from the resource center on Barclaycard's website which can help you better manage your finances and get acquainted with the basics of credit.
Like the U.S. Bank Cash Visa Signature Card, the Barclays Rewards MasterCard also comes with the standard fraud liability and travel insurance. With all credit cards, the APR is contingent on your personal credit history so it's best to check with Barclays directly for specific information.
Verdict - Great
Barclays Bank receives an A+ from the BBB and they've been accredited since 2001. This card is really intended for someone who frequently makes purchases on groceries and can pay off the balance at the end of each month. You do need to have fair to average credit to be approved for this card which means it may be easier to obtain than the U.S. Bank Cash Visa Card.
- 5% rewards at Target stores in the U.S.
- 30 extra days for returns
- Free shipping online
- Donate 1% to a school of your choice
- Target Pharmacy® rewards
- No affiliates
- No introductory APR rate
- Late fee up to $35
If you are a frequent Target shopper and would like to save 5% on the total amount you spend at SuperTarget locations and other Target stores, then seriously explore the Target REDcard. It's not by any means excluded to grocery rewards either. While this card doesn't have an introductory APR rate you will have peace of mind knowing that you won't ever be charged a cash advance fee or foreign transaction fee. The benefits apply to purchases made on Target.com but keep in mind that this card does not have any affiliates so you are limited to Target stores and no other establishment. On the positive side, Target shoppers will appreciate the additional 30 days for returns, host of online management tools to monitor your account balance as well as Pharmacy rewards. You gain from having no annual fee plus 1% of all your purchases will be donated to your choice of a kids' elementary school, neighborhood school or qualifying K-12 institutions.
Verdict - Very Good
Overall, for a store card the Target REDcard exceeds our expectations for grocery credit cards. Target is a great organization that prides itself of excelling in all areas of service and product offerings. They get an A+ from the BBB and have been accredited since 1980! You get your share of features including the bonus cashback, free online shipping as well as the other incentives noted above. In terms of cons, there is no introductory APR offer and you will have to pay a late fee up to $35 for any overdue balances. For details about the specific APR figure, check with Target directly as they fluctuate alongside market conditions and are dependent to a degree on your creditworthiness.
Blue Cash Everyday
- Introductory APR offer
- 3% cash back at supermarkets
- 2% cash back at gas stations and select department stores
- 1% cash back on other purchases
- No annual fee
- $35 late fee
- 3% cash advance fee
- 3% balance fee
Offered by one of the leading card issuers in the world, American Express offers a range of options for personal, corporate, and high-spending card holders. The Blue Cash Everyday Card from American Express gives you 3% cash back at participating supermarkets up to a total of $6,000 per year, 2% cash back at gas stations and affiliate department stores plus 1% back on any other purchases. As an introductory offer American Express will give you $100 back in statement credits assuming you spend $1,000 on purchases in the first three months. It boasts no annual fee and an introductory APR offer. However, with all APRs it's best to check with the individual provider as these rates are variable and are heavily dependent on your personal credit worthiness. Like the other cards on our list, there are a few fees to be aware of. It has a late fee up to $35; cash advance fee of 3% or a minimum of $5 and a balance transfer fee of 3% or a minimum of $5.
In terms of other features, you get access to a roadside assistance hotline, travel accident insurance, car rental reimbursement plus damage insurance as well as an extended warranty on eligible purchases. If there's any doubt in your mind that American Express will offer the customer service support you need, appease your worries. They excel in customer service and have a highly rated team on hand to answer inquiries, resolve disputes and address any needs.
Verdict - Good
American Express has been accredited by the BBB since 1948 and receives an A- for service. This card is really optimal for individuals who spend a large portion of their monthly expenses on gas and groceries. Considering all the benefits it comes with like the cash back at supermarkets and gas stations plus the sign up offer and no annual fee this card makes it to our top 5 list.
BankAmericard Cash Rewards
- High BBB rating
- Excellent banking reputation
- 2% back at grocery stores
- No annual fee
- 3% on gas for the first $1,500
- 5% or $10 fee on wire transfers
- 3% or $10 balance transfer fee
- 3% cash advance fee
You've probably seen this card floating around your friends or family member's wallets-and with good reason. This is a suitable card offered by one of the foremost banking institutions in the country. The BankAmericard, offered by Bank of America definitely has some appealing points. To start with, as a signing promotion you'll get $100 cash rewards bonus when you spend $500 on purchases within the first 90 days of opening the account. It has no annual fee, which is always good to know. In terms of rewards you get 2% at grocery stores, 3% on gas for the first $1,500 in grocery and gas purchases plus an additional 10% bonus each time you redeem your cash back bonus into an associated Bank of America savings or checking account.
Some cards are sneaky at changing categories on you which in turn affects the cash back you're eligible to receive but you don't have to worry about that with the BankAmericard. In addition, your rewards do not expire so there's never a rush to spend them before you're good and ready.
They do have an introductory period, which is dependent on your creditworthiness but fair to average credit holders tend to be easily approved. As with the previous four cards on the list, there are fees to be aware of. The card has a 5% or $10 fee on purchases and wire transfers, 3% or $10 balance transfer fee, 3% cash advance fee and 3% foreign transaction fee. There is also a $35 late payment fee (maximum) and up to a $25 returned payment fee.
Verdict - Fair
Overall, this grocery card is great for earning rewards when shopping at grocery stores and when coupled with a Bank of America savings of checking account. However, there are a number of fees, which may be off-putting to certain individuals. Check with Bank of America directly for specific figures regarding APR, but on the whole you should get approved if you have average credit. They have stellar reviews by the BBB and have been accredited since 1949. Check out what they have to offer.
The five aforementioned cards are all fantastic choices to use at grocery stores and gas stations to earn extra rewards. Be mindful of the additional fees noted in the cons as well as the institution's ratings across the board. Also, inquire with the specific providers for APRs and other introductory offers dependent on your personal creditworthiness.
Credit Cards for Groceries FAQs
What is a grocery credit card?
A grocery credit card typically offers bonus points, miles, or some cash back perk for spending money at participating grocery outlets. Bonus points and miles may be applicable to airline flights, hotel nights, among a number of other things. The Blue Cash Preferred Card from American Express, for example, gives you 6% cash back, 3% U.S. gas stations, and 1% on other purchases. In addition to that you'll have access to a 24/7 customer service agent and an APR between 12.99% and 21.99%. Be aware that the majority of grocery credit cards have an annual fee, cash advance and balance transfer fee. If you apply for one of these cards during an introductory period you may be able to get one of the aforementioned fees waived.
Should I get a grocery credit card?
The United States Center for Nutrition Policy and Promotion estimates that the average grocery bill for a family of four is close to $940 per month. From that sum, even a low cash back or rewards percentage could turn out to be a big payoff. Otherwise a grocery card like Target REDcard allows you to get immediate savings on the merchandise you purchase. As a REDcard holder, you get a flat 5% discount at checkout. Don't be blind to the drawbacks though. There are a fees associated with grocery cards as with any type of bank sponsored card. These include late fees, balance transfer, annual fees, and cash advances. If you generally don't spend a large portion of your monthly income on groceries you may be better off signing up for a card with no upfront and annual fees. Evaluate your merchandise and grocery purchases in relation to the pros and cons before signing up for a grocery card.
What is the best way to use a grocery credit card?
One way to use your grocery store credit cards to the fullest, aside from regular grocery purchases, is to buy gift cards for your most frequented restaurants or merchants. Melanie Pinola, a finance writer for Lifehacker says, "if you have a credit card that gives you something like 3-to-6 percent back on purchases made at the supermarket, you can buy gift cards at the supermarket and therefore, in essence, save that 3 to 6 percent." Gift cards for restaurants (and a variety of other stores) can typically be purchased at the front of the store near the cash registers. Otherwise, apply for a grocery card which rewards you for shopping at your favorite grocery outlets.