The Credit Card That Gets You The Best Rewards On Groceries

Grocery bills are a fact of life, so why not capitalize on them and build valuable rewards with every visit? The right credit card can save you a ton of money at the supermarket, unlocking hundreds of dollars in savings annually. With dozens of choices out there, which card deserves a front-row seat in your wallet? The Blue Cash Preferred Card from American Express is a solid choice. 

This card earns a whopping 6% cash back at U.S. grocery stores on up to $6,000 a year. If you spend $500 a month on pantry staples, you'll earn $30 back each time, totalling $360 in passive annual earnings. The value doesn't end here. Cardholders also save 6% on select streaming services, 3% on transportation, 3% on gas, and can expect a 1% return on everything else (including groceries after the $6,000 cap). Your Amex Reward Dollars are redeemed as statement credits, virtually wiping charges off your account.

There's also usually a sign-up bonus ranging from a $250 to $350 statement credit if you spend $3,000 within six months of joining. This raises rewards to $610 or $710 in the first year, if you hit the bonus and max out your $6,000 grocery spend. You can also activate Amex Offers, customized digital coupons that earn additional rewards or statement credits available in the American Express portal. You'll find discounts on meal kits, produce vendors, and major grocers, with rotating offers that further reduce your expenses.

So what's the catch? First, it's important to know that the Blue Cash Preferred Card is a fee-based card, with a $95 annual membership. Luckily, if you max out your 6% cash back each year ($360 cash back from $6,000 in grocery spend), your earned rewards cover the annual expense. 

Another consideration is your credit score. You'll need good to excellent credit (670-850 points) for the best chances of approval. According to Credit Karma, the average cardholder has a score of 702 and a credit limit of just over $12,000. If your score is less than stellar, you could ask a friend or family member with a stronger score to open the card and add you as an authorized user for free. You'll receive a second card tied to the same account, allowing multiple users to pool their purchases (and therefore rewards) together. 

Like many credit cards, the Blue Cash Preferred Card accrues daily compound interest on any balance carried beyond your grace period. The current variable APR for this card ranges from 20.24% to 29.24%. Thankfully, new members get an introductory offer of 0% APR on purchases for the first year.

While the Blue Cash Preferred card's straightforward 6% rebate is best for most, there are other options. If you're a loyalist to a specific grocery rewards program, you may get better value with a brand-specific card. If you're a fan of Whole Foods and Amazon Fresh, the Prime Visa Card offers 5% cash back and a $200 Amazon gift card (with an eligible Prime membership). To save more money at Costco, consider the Costco Anywhere Visa, a fee-free card that earns 2% unlimited cash back on Costco groceries (an active membership is required).

Frequent travelers can maximize the value of their groceries with a card that earns points and miles. These can be more lucrative than cash back because the points are often redeemed at a higher value for flights and hotels than for cash. For example, the Hilton Honors Surpass Card offers 6x points at U.S. supermarkets, and the Citi Strata Premier Card gives shoppers 3x back in the form of ThankYou Points, redeemable with Citi's travel partners.

If you make on-time payments and have strong credit, maximizing credit card rewards is a no-brainer. Applying online only takes a minute or two of your time, and some brands offer instant approval. Keep the perks flowing by stacking your credit card with loyalty memberships, coupons, and rebate apps. Now, all that's left to do is sit back and watch each swipe at the grocery store snowball into tangible value.