7 Best Credit Cards for Groceries of 2024

Should I use a credit card to buy groceries?

It’s worth using a credit card to buy groceries if you don’t increase your spending just to earn extra rewards.

The main reason to open a grocery credit card is to earn cash back, points or miles based on your typical spending habits. If you have to spend more than you budgeted just to earn a few more perks, even the best credit card for food shopping isn’t worth it.

Pros and cons of credit cards for groceries

How do grocery credit cards work?

The best grocery credit cards offer higher rewards for purchases made at eligible grocery stores.

Every time you make a qualifying purchase, the card issuer multiplies the transaction amount by the rewards rate. Let’s say your credit card offers 3% cash back, you would have to multiply the transaction amount by 0.03. 

Assume you spend $103.48 at an eligible supermarket. At a rewards rate of 3%, you’d earn $3.10.

Not all grocery credit cards offer cash back. Some offer points or miles, but they work the same as cash-back credit cards. For example, if your card gives you 4x points on eligible grocery purchases, you multiply the transaction amount by four.

What do credit card companies consider a grocery store?

A grocery store is a retailer that focuses on selling food products. Note that the definition of a grocery store has nothing to do with its size. You can shop at mom-and-pop shops or giant chains like Kroger and Safeway.

These stores are usually excluded from the grocery category:

• Warehouse clubs: A warehouse club sells bulk goods to its members. Costco and Sam’s Club are some of the most popular examples.
• Convenience stores: Unlike supermarkets, convenience stores have a limited selection of products. They’re meant to fill in the gaps when a consumer doesn’t have time to shop for groceries or can’t get what they need at another store. Circle K and 7-Eleven are both classified as convenience stores.
• Superstores: Also known as big-box stores, superstores are much larger than standard grocery stores. They offer a mix of food items and general merchandise.

Types of credit cards for grocery shopping

Not all grocery credit cards work the same way. Here’s a look at the different types of cards available to consumers.

Cards that give rewards at grocery stores

Many standard credit cards offer bonus rewards for grocery spending. The Blue Cash Everyday Card offers 3% cash back on your first $6,000 in eligible grocery purchases each year (then 1%).

Some cards come with a flat rewards rate, such as 4 points per dollar spent on grocery purchases. Others have rotating categories, giving you a limited amount of time to earn bonus rewards on your grocery transactions.

Cards that give rewards when you use delivery services

Several credit cards give rewards when you use apps or websites to order groceries. Uber Eats and DoorDash also deliver groceries, so it may be beneficial to sign up for a rewards card related to at least one of those services.

Store credit cards

A store credit card typically works at just one store or chain. For example, if you don’t qualify for the Capital One Walmart Rewards Card, you may be eligible for the basic Walmart Rewards Card. Unlike the Capital One version, the Walmart Rewards Card only works at Walmart stores, in the Walmart app and on Walmart.com. Target also has a store credit card.

One of the biggest advantages of applying for a store card is that you can usually qualify even if you don’t have good to excellent credit. Most store cards also have no annual fees.

Co-branded store cards

A co-branded store card is a credit card offered by a grocery store that has a card on the Visa or Mastercard network. For example, Giant Food offers a co-branded Visa card.

Other credit cards

Some cards give you cash back on every purchase you make, so you don’t have to worry about rotating categories or category-based spending caps. You earn cash back on your grocery purchases, but you don’t have to use the card at a grocery store.

How much money can I save with a grocery credit card?

It depends on what type of card you have and how much you spend on groceries.

In 2022, U.S. households spent an average of $5,703 on food to be eaten at home, according to the Bureau of Labor Statistics. 

Here are a few scenarios to illustrate your potential earnings:

• Card offering 3% cash back: $171.09
• Card offering 6% cash back: $342.18
• Card offering 4 points per dollar spent: 22,812 points

How to choose the best credit card for groceries

• Know your credit score: Some cards are reserved for consumers with FICO® scores above 700. If you’re building credit, you may want to apply for a store card first.
• Identify your grocery shopping preferences: It’s important to match your rewards with your spending. If you do most of your grocery shopping at Walmart, it makes sense to sign up for a Walmart credit card to maximize your earnings.
• Consider other benefits: Many credit cards like travel credit cards, come with additional perks, such as elevated status with airline loyalty programs or statement credits for hotel stays. Think about your spending habits to determine which perks are likely to give you the most value.
• Look out for fees: Higher annual fees typically come with higher reward rates, but not everyone can afford to pay a fee of $250 or $550 per year. Instead, look for no-annual fee cards and check each card’s terms and conditions carefully.
• Consider getting multiple cards: If you have multiple cards, you don’t have to worry about spending caps. Additionally, pairing a grocery credit card with another type of card such as an airline card may help you maximize your benefits. For example, you may be able to earn extra airline miles or qualify for discounted hotel stays.

How to maximize rewards with a grocery card

Once you have a grocery credit card, try to make the most of it.

Here’s what you can do to maximize your rewards:

• Use the card every time you shop for groceries.
• Earn the welcome bonus by meeting the minimum spending requirement.
• Apply for a second card if you reach the spending cap on the first one.
• Order groceries online if the card you chose has a higher reward rate for online purchases.
• Earn bonus points by purchasing store-brand items.
• Pay your balance in full every month to avoid interest.

Should I have more than one credit card for groceries?

Applying for a second card may be a good idea as some credit cards have annual spending caps in the grocery category.

If you exceed the spending limit on one card, getting another can help you maximize your rewards. Just remember to pay both balances in full each month.