There are all kinds of credit card rewards out there. Some credit cards even have rewards for buying groceries. For those trying to save money on their everyday food expenses, it is smart to use credit cards with rewards when purchasing groceries. Here are the best credit card rewards for buying groceries.
The Most Important Credit Card Reward When Buying Groceries
When looking for credit card rewards for groceries, here are a few things to pay attention to:
Cash Back At Supermarkets
Cash back at supermarkets can help a person earn money for every dollar they spend on groceries. This cash back is a percentage that can range from 1% to a high of about 6%. When picking out a credit card—specifically for grocery rewards—it is extremely important to get a credit card that has a good cash back percentage for purchases in supermarkets.
Since many grocery retailers also have loyalty programs. It may be the most beneficial to stick with one grocery store in addition to using a credit card with cash back—this gives a person both advantages when shopping for their meals.
Bonus Rewards for Shopping at Specific Grocery Retailers
Credit cards will often have specific bonuses for shopping at specific retailers. It is important to pay attention to those as they can change every so often. When the bonuses do switch to grocery rewards it is important to take advantage and use the credit card in grocery retailers where bonus rewards are active.
Credit Cards Rewards Where the Supermarket is the Credit Card Lender
Retail chains that sell groceries nowadays have their own credit cards that have a high cashback and savings rate. If a person finds that they get most of their groceries from one of these retailers, it may be a good idea to look into a company specific credit card. Not to mention that these stores usually sell other everyday household items—which makes all kinds of shopping easier and more affordable.
How to Use Your Credit Card Rewards—For Groceries or for Other Expenses
Once a person has collected all those rewards, they may be wondering how they could use them—before they expire. There really isn’t a best way to use rewards, it all depends on the needs of every individual. There are a few ways to use those rewards once they are earned:
· Redeem Credit Card Rewards Online
Many credit card lenders let their customer redeem their cashback/points for online purchases. This can be done fairly easily by viewing your credit card account details—the website will then walk their customer through the steps of redemption at checkout.
· Ask for Credit Card Rewards to be Mailed
If a person prefers to handle things on paper, many lenders can also send their customers a redeemable check through the mail. To ask a lender about this, contact the credit card lender via phone, or find that information through their website.
· Redeem Credit Card Rewards Straight into Your Credit Account
If a person is looking to simply pay back the expenses that they acquiring on their credit card, redeeming points/cashback for this option is available. This is usually done online but there may be an option over the phone as well.
It is important to pay close attention the amounts of rewards you earn, when they expire, and the cap of rewards that each credit card lender has in place.
What to Look Out for with Credit Cards That Offer Rewards with Groceries
When picking a credit card for its rewards, it is important to keep in mind that these cards usually have a few not-so-great attachments that come with them or some eligibility requirements. Pay attention to the following, with reward credit cards:
- Credit Scores Determine Eligibility: When it comes to eligibility, credit cards with rewards are usually only available to those with high credit scores. But the good news is that a credit score can always be improved!
- Higher Annual Fees: A lot of these credit cards have higher than average annual fees—ranging from around $200 to $300. Make sure to compare these costs before choosing a card to go with.
- Higher Interest Fees: Credit cards with rewards tend to have higher interest rates, so it’s best to not keep a balance on them and to be mindful when using them.
- Caps on Rewards: Many credit card lenders will cap the amount of rewards that a customer can get—in annual terms.
Credit cards may come with different cash back rewards. When looking for rewards on groceries, there are definitely important perks to pay attention to. It may also be useful to know how to access and use those rewards once they are accumulated. When using or first getting a credit card with rewards, it is important to know about the different drawbacks that come with them. By factoring in all of these variables, a consumer could then consider if reward credit cards are a good option for their wallet.