Some great credit cards for groceries have come and gone. Many of you might have the old Sallie Mae Barclaycard MasterCard, an amazing card for all-around rewards with 5% back on gas and groceries and no annual fee. Unfortunately, that card is no longer available, but let’s look at some of the top cash back cards for grocery store shopping.
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Cash Back Cards
Blue Cash Preferred® Card from American Express
The card carries a $95 annual fee, but you’d earn that back after $1,250 in groceries (just spending around $100/month). Furthermore, the current offer on the card gives you $250 back after $1,000 in purchases in the first three months. That would pay for the annual fee for the first two years +.
You can learn more about the card here.
Blue Cash Everyday® Card from American Express
This is a great card if you don’t think you’ll spend enough money each year to cover the Preferred’s $95 annual fee.
You can learn more about this card here.
The Chase Freedom offers 5% cash back rotating quarterly on up to $1,500 in purchases in that three-month period. Chase changes the categories every three months, and right now, we’re in the gas stations bonus period (ends on March 31st).
This is a great card, as the quarterly rotations can really add up for other common purchases like restaurant meals, online shopping, and department stores. This card has no annual fee and earns 1% on all other purchases. It also has a sign-up bonus of $150 back when you spend $500 in the first three months.
American Express® Gold Card
As a limited time bonus, you’ll also receive $10 monthly credits when you pay with the Gold Card at Grubhub, Seamless, The Cheesecake Factory, Ruth’s Chris Steak House, Boxed, and participating Shake Shack locations.
The downside to this card is its $250 annual fee. Consider this card if you want to use it for more than just groceries, as the welcome offer and 3x airline points are quite valuable.
Click here for more details and to learn how to apply.
If I were choosing one of these, I’d have to go with either the Blue Cash Preferred® from American Express. A solid 6% cash back just can’t be beat. The Blue Cash Preferred® from American Express quickly earns back its annual fee and can net you significant cash back if you’re a big grocery buyer, to the tune of $295 annually if used to its capacity.
How to Pick the Best Credit Card for Groceries
Understanding the cash back rewards of various credit cards is a good start. But there are several factors to consider as you compare these offers.
Your Credit Score: Many of these cards require excellent credit. As a general rule, you’ll want a FICO score of 700 or more. That’s not the only factor card issuers consider, and you may qualify with a slightly lower score. But these offers require solid credit.
Reward Limits: Some credit cards place limits on the rewards you can earn. They may cap the spending that earns a higher reward rate. In other cases, they may pay bonus rewards on grocery purchases for a limited time. The key is to understand the terms and conditions before you apply for a card.
Welcome Offers: Many cards today offer welcome offers. Some of these bonus deals amount to hundreds of dollars. While this shouldn’t be your only consideration, it’s worth factoring into your decision.
Fees: In some cases an annual fee may well be worth it. If you’ll use the card enough and it offers excellent rewards, you may earn your money back quickly. Just do the math to make sure the card is worth the price of admission.