Top Grocery Rewards Credit Cards for 2020

Top Grocery Rewards Credit Cards for 2020

August 7, 2020         Written By Tracy Farnsworth

LowCards is a Citi partner. These offers, valid when the article was written, may have expired. View our full editorial disclaimer here.

Each month, families and individuals spend hundreds of dollars on their groceries. You’re looking to save money. One way to do that is by finding the top grocery rewards credit cards available to you. Before you apply for a cashback rewards credit card, learn how to choose the right card for your needs.

Features to Look for in Cash Back Rewards Credit Cards

What should you look for when researching cash back rewards credit cards? Four factors should be at the top of your list.

  1. Introductory Rates and Regular APRs
  2. Fees
  3. Cash Back Rewards
  4. Bonus Offers

Introductory Rates and Regular APRs

Featured Good Credit Card

Top Features: No fees whatsoever. No late fee, international fee, annual fee, or any-other-kind-of-fee, fee

Introductory interest rates will differ from the APR that’s used after the introductory period ends. You might be offered 0% APR for the first six months or maybe a year. At that point, you’ll move to the standard APR that is based on your creditworthiness and is usually the variable prime rate plus the designated interest rate assigned by the credit card issuer. If the prime rate is 1.5% and you’re told you qualify for a 25% interest rate plus prime, your APR would be 26.5%, but it’s variable so it will go up or down based on the prime rate.

If you’re looking for a credit card with a 0% introductory rate with cashback rewards for groceries, the Capital One SavorOne Cash Rewards Credit Card is ideal. Cashback rewards are issued at two levels and offer the cash back rewards on dining, entertainment, and groceries.

 

Fees

Some credit card companies require you to pay an annual fee. You should make sure there is no annual fee. If there is, it will be charged to your credit card. If you are looking at a card with an annual fee, see what the annual fee gets you. If you’re not gaining any benefits over a card without an annual fee, it’s better to choose the card that doesn’t have the annual fee.

You’ll also find credit cards charge over-the-limit fees, late payment fees, foreign transaction fees, etc. While you may not be able to avoid these fees, you should find credit cards with the lowest fees.

The Petal Visa Credit Card is an example of a card with no fees. You don’t pay a late fee, international transaction fee, or annual fee. You also get cashback on qualifying purchases and access to an app that helps you track your spending and make payments online.

 

Cash Back Rewards

Read over the terms of the cashback rewards. You want a cashback rewards credit card that allows you to get the cash back on groceries. Some cards only offer cashback rewards on travel or gas. Make sure that groceries are covered. Cashback rewards cards may offer 5x bonuses on certain categories. If the 5x bonus is good on groceries, you’d get five times the cashback.

For example, if you have a 1% cashback reward on groceries and spend $500 that month, you’d get $5. A 5x bonus would bring you to $25. These reward bonuses make a big difference.

Read the terms to see if the rewards ever expire. Sometimes, they do expire if you don’t claim them within a certain number of months. Others never expire, and that’s the ideal rewards program to find.

The Citi Double Cash Card is an example of a rewards credit card that offers cashback rewards. You get double the cashback rewards as long as you make your monthly payments on time. There’s also a 0% introductory rate available for balance transfers.

 

Bonus Offers

Who wouldn’t want to earn free cash as thanks for becoming a member? Some credit cards offer a substantial cash gift if you apply for a new card and make the required amount of purchases over the time limit. For example, you might get $150 in free cash for making $500 in purchases in the first three months. It’s not hard to spend $500 on three months of groceries.

The Capital One Quicksilver Cash Rewards Credit Card is an example of a credit card with a bonus offer for new cardholders. Besides, you might qualify for a 0% introductory rate and cashback rewards that never expire.

 

Tips for Applying

Each time you apply for a credit card, the credit card issuer pulls your credit report. There are two ways to do this. One is a soft inquiry that doesn’t impact your credit score. A soft inquiry is used for pre-qualification. A hard inquiry is used when you apply for the card. According to Experian, just one hard inquiry reduces your credit score by up to 10 points. If your first choice denies your application, you could find your credit score plummeting.

To avoid the hit on your credit score, always look for cashback rewards credit cards that allow you to pre-approval. You’ll have a good idea from the response if you would be pre-qualified. That helps you narrow your list to the top three cards. Rank them starting with your most desired, and apply for the top credit card on your list. Wait for the response. If you are offered the card, you’re all set. If not, move to the second on your list.

If you haven’t been approved after three credit card applications, it’s time to look at rewards debit cards that link to a savings account. When you purchase groceries, you get cashback. You also deposit money into an account that pays for your purchases and the money in that savings account collects interest. The Unlimited Cash Back Bank Account Debit Visa by Green Dot is a great choice and helps you accrue interest while also getting cashback on online and mobile purchases.

 

Other Ways to Save on Groceries

What if the credit card you want isn’t available or won’t qualify you? There are other ways you can save on groceries. Here are some of your options.

#1 – Grocery Store Rewards Programs

Check with your grocery store to see if they have a rewards program. If they do, you usually get exclusive coupons that are customized to your frequent purchases. Sometimes, new items are offered for free through these coupons. You could get to try a new iced tea or yogurt free with these try-before-you-buy offers.

In addition to customized coupons, some grocery stores offer cashback rewards when you buy store brands. You could find yourself getting 2%, 3%, or more when you focus your purchases on store brands instead of name brands. The savings are rebated on a set schedule to help you save on a grocery purchase.

You may also find periodic giveaways that are only available to rewards members. Sign up for the free grocery store rewards program on your store’s website or at the customer service desk. If you’re worried about them having your phone number or email, you can always sign up for a free email account that’s only used for store newsletters and rewards programs. Rely on online services like Google Voice to get a free phone number you can use for rewards programs.

 

#2 – Cash Back and Shopping Rewards Programs

Join cashback and shopping rewards programs. You install an app to your phone or sign up for free online and check off rebates you might purchase. The offers vary and often include commonly purchased items like coffee, cheese, breakfast cereal, beverages, and dairy. Some extend the offers to cover purchases you make online with major retailers.

If you do buy qualifying rebates, scan your receipt into the app or submit a photocopy to the company. The program rebates that cash into your balance. When you’ve built up enough money, you request a check or payment through an e-wallet like PayPal.

 

#3 – Coupons

You can also save money the old-fashioned way and clip coupons out of magazines or the Sunday paper. Coupon inserts may have so many coupons that it more than covers the cost of the paper. You could also search online with your favorite companies to see if they have online coupons you can print out. If you find coupons on items you purchase regularly, you’ll find it’s easy to cut your grocery bill.

What’s the best way to slash your grocery bill? Use a variety of methods. Sign up for store rewards, collect coupons, and join a cashback grocery rebate program. Once you’ve done that, apply for a cashback rewards card that credits you a percentage of cashback on all grocery purchases. Use that card for your grocery trips and pay each week. When you do, you won’t pay high interest or find yourself owing more than you can afford.

Three easy steps help you get the best grocery store cashback rewards credit card.

  1. Research and choose the best cashback rewards credit cards for your needs.
  2. Pre-qualify to narrow your options.
  3. Finally, apply for your top pick.

 

Check out our Consumer Tips for additional money management guides, or use our credit card matching tool to find the perfect card for your needs. 

The information contained within this article was accurate as of August 7, 2020. For up-to-date information on any of the terms, cards or offers mentioned above, visit the issuer's website. Many of the offers on this article are from our affiliate partners, and LowCards.com may be compensated if you take action with any of our affiliate partners.

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tracy

About Tracy Farnsworth

Tracy Farnsworth went straight from a business track in high school to a full-time job in mortgage banking in Burlington, Vermont. After having children, she built a freelance career in content writing and took online classes as time allowed. She completed Social Media Marketing and Digital Marketing certificate programs with Ireland's online Shaw Academy and completed several courses in SEO and analytics. In her free time, she's the “mom” to a very clingy rat terrier, and the pair walk at least a mile every day. She's also a novice baker who is trying to master the art of sourdough bread.