Best credit card for grocery rewards

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van_sun_38
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Best credit card for grocery rewards

Post by van_sun_38 » Tue May 19, 2020 7:51 pm

Now that the majority of our spending goes to groceries, I am curious what do you recommend in terms of best credit card for earning rewards in that category? I have a Discovery card that earns 5% in grocery for 3 months ( Jan-Mar) but now we hardly spend on anything else so it's not really useful. TIA!

Lalamimi
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Re: Best credit card for grocery rewards

Post by Lalamimi » Tue May 19, 2020 7:53 pm

Chase Freedom! April, May and June, 5% Groceries.

BeneIRA
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Re: Best credit card for grocery rewards

Post by BeneIRA » Tue May 19, 2020 7:57 pm

van_sun_38 wrote:
Tue May 19, 2020 7:51 pm
Now that the majority of our spending goes to groceries, I am curious what do you recommend in terms of best credit card for earning rewards in that category? I have a Discovery card that earns 5% in grocery for 3 months ( Jan-Mar) but now we hardly spend on anything else so it's not really useful. TIA!
A lot of Amex and Chase cards have bonuses. For Amex through 7/31 and for Chase through 6/30. If you don't max out the categories, buy grocery gift cards.

musicmom
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Re: Best credit card for grocery rewards

Post by musicmom » Tue May 19, 2020 8:02 pm

Amex Blue Cash Preferred.
It does have an annual fee $99

But 6% on groceries and streaming services year round.

decapod10
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Re: Best credit card for grocery rewards

Post by decapod10 » Tue May 19, 2020 8:04 pm

Depends on how much you spend and also what kind of rewards you want.

Bank of America cash rewards gives 2-3.5% depending on if you have status with BofA, up to $2500 spend per quarter. No annual fee

American Express gold card gives you 4x points for groceries, up to $25k spend per year. Annual fee $250 but there are some other perks. Probably only worth it if you spend a lot (like buy gift cards at the grocery store).

AmEx Blue cash gives 6% back up to $6000 spending per year. Annual fee $95

Those are some of the options I can think of.

go_mets
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Re: Best credit card for grocery rewards

Post by go_mets » Tue May 19, 2020 8:13 pm

van_sun_38 wrote:
Tue May 19, 2020 7:51 pm
Now that the majority of our spending goes to groceries, I am curious what do you recommend in terms of best credit card for earning rewards in that category? I have a Discovery card that earns 5% in grocery for 3 months ( Jan-Mar) but now we hardly spend on anything else so it's not really useful. TIA!
Unless you hit the maximum spend, most people just buy grocery gift cards to cover some of the other months.

In my opinion, you can have the Discover and Chase Freedom and Fidelity Rewards (2% for everything else).

.

bayview
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Re: Best credit card for grocery rewards

Post by bayview » Tue May 19, 2020 8:13 pm

musicmom wrote:
Tue May 19, 2020 8:02 pm
Amex Blue Cash Preferred.
It does have an annual fee $99

But 6% on groceries and streaming services year round.
We cleaned up like bandits when we lived in California, as grocery stores also sold liquor (“distilled spirits”), motor oil for cars, and lots of other items that we would otherwise buy elsewhere.

It is still our grocery card now that we’re no longer in Cali, but its impact is a bit diluted.
Last edited by bayview on Wed May 20, 2020 11:08 am, edited 1 time in total.
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Nate7out
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Re: Best credit card for grocery rewards

Post by Nate7out » Tue May 19, 2020 8:48 pm

musicmom wrote:
Tue May 19, 2020 8:02 pm
Amex Blue Cash Preferred.
It does have an annual fee $99

But 6% on groceries and streaming services year round.
I have the old Amex Blue cash, never updated it. 5% on gas groceries and drugstores. 1.5% everything else. No fees. There is a min spend before 5%, but I determined I come out ahead. Hence I did not update. Back in the day you could buy I bonds, get cash back and quickly get to the high rewards tier. Alas, no more.

For a new card I would go with preferred.

WS1
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Re: Best credit card for grocery rewards

Post by WS1 » Tue May 19, 2020 10:06 pm

The magic of the Blue Cash Preferred is it’s 6% groceries and 3% on gas. If you don’t hit the $6000 grocery store cap every calendar year it’s not worth it.

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tyrion
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Re: Best credit card for grocery rewards

Post by tyrion » Tue May 19, 2020 11:02 pm

The Amex Blue Cash Preferred can also be used for amazon if you don't spend the full 6k at grocery stores by buying amazon gift cards at the grocery store then loading them in your amazon account. Or any other gift cards you feel like buying - home depot, target, etc. Amazon just happens to be the easiest since you can upload them immediately and use the money from your account later.

HawkeyePierce
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Re: Best credit card for grocery rewards

Post by HawkeyePierce » Tue May 19, 2020 11:22 pm

Amex Everyday Preferred offers 4.5x on groceries and 3x on gas as long as you hit 30 transactions a month.

psy1
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Re: Best credit card for grocery rewards

Post by psy1 » Wed May 20, 2020 12:46 am

It depends on your goals and spending. If your goals are cash back and your spending modest, then the 5% cash back cards win.

If your goal is travel (now in holding pattern) then AMEX Gold which offers 4X points up to $25,000 per year is hard to beat. The spend includes gift cards purchased at grocery including Amazon and all of the usual department stores and gas stations.

If you happen to also have an AMEX Platinum card through Schwab then the points pool and you can convert to $ in your brokerage account at 1.25X. That means you can convert all your AMEX grocery charges to 5% invested in cash in your brokerage account. You can still do better if redeeming for travel but that is a good deal.

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Re: Best credit card for grocery rewards

Post by Jack FFR1846 » Wed May 20, 2020 7:26 am

It takes some work, but Citi Sears this quarter has 5% in Thank You Points at Restaurants, Grocery stores and Gas stations. But the catch is that you have to spend at least $2k. How I do this, when Covid isn't present :shock: is that I'll buy a visa gift card (probably cards) at the grocery store. Then I buy things that are not in the bonus categories (Amazon, insurance payment, hardware) using that gift card.

To me, it's not worth it for 5% as above mentioned that Chase Freedom has groceries at 5% this quarter. When the Citi Sears offers 10%, then it's worthwhile.

Note also that some stores (Giant, Stop & Shop, Price Chopper) also offer extra gas points (for cents per gallon discounts) for gift card purchases. You can game the system by buying the visa gift card with your Freedom at, say, Stop & Shop to get your gas bonuses, when they are offering. Then use the Visa gift card at Price Chopper to buy another gift card that you will use that is offering a gas points discount. There are other schemes to maximize points, but that's getting a bit off the topic here.
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MrJedi
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Re: Best credit card for grocery rewards

Post by MrJedi » Wed May 20, 2020 8:01 am

Our household spends about $12k year on groceries. It's easy for us to max out the $6k limit on the 6% back Amex Blue Cash Preferred (nets about 4.2% back after subtracting $95 annual fee) and also whenever Chase and Discover do their Grocery 5% bonus quarters. Between the 1 amex, 2 Chase, and 2 Discover cards, we earn the 5-6% back through the whole year on basically the entire $12k annual grocery spending ($6k amex, $3k 2 Chase, $3k 2 Discover).

MikeG62
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Re: Best credit card for grocery rewards

Post by MikeG62 » Wed May 20, 2020 8:21 am

MrJedi wrote:
Wed May 20, 2020 8:01 am
Our household spends about $12k year on groceries. It's easy for us to max out the $6k limit on the 6% back Amex Blue Cash Preferred (nets about 4.2% back after subtracting $95 annual fee) and also whenever Chase and Discover do their Grocery 5% bonus quarters. Between the 1 amex, 2 Chase, and 2 Discover cards, we earn the 5-6% back through the whole year on basically the entire $12k annual grocery spending ($6k amex, $3k 2 Chase, $3k 2 Discover).
We are in a similar position and do precisely the same thing.
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carolinaman
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Re: Best credit card for grocery rewards

Post by carolinaman » Wed May 20, 2020 8:53 am

Covid 19 has changed our payment strategy. We used to use CCs mostly for large purchases, travel, and gas; and debit cards for everything else. We are now using CCs for everything including food. It eliminates the need to key pin and touch card reader.

We have Costco Visa which rewards 4% for gas, travel and restaurants, 2% at Costco and 1% for everything else. I will continue to use it for larger purchases with warranties because of its warranty protection. We use WF Visa for other CC purchases. It pays 1.5% for everything. Last year we got $225 back from Costco Visa and probably a $100 or so from WF Visa. We have used debit cards for groceries (about $8000 a year), home improvement stores, clothing and lots of other things. My rough guess is that we can redirect at least $30k from debit to credit cards

I do not want to have a number of CCs, each suited for particular types of transactions and only save $100 or $200 a year. For example, the Amex Blue would net me $175 over current CCs for groceries. That is not enough to incent me to get another CC. My preference is to keep Costco and possibly swap WF for something else provided it is worth it.

What cards should we consider or is what we have ok given our situation and preferences?

MrJedi
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Re: Best credit card for grocery rewards

Post by MrJedi » Wed May 20, 2020 9:43 am

carolinaman wrote:
Wed May 20, 2020 8:53 am
Covid 19 has changed our payment strategy. We used to use CCs mostly for large purchases, travel, and gas; and debit cards for everything else. We are now using CCs for everything including food. It eliminates the need to key pin and touch card reader.

We have Costco Visa which rewards 4% for gas, travel and restaurants, 2% at Costco and 1% for everything else. I will continue to use it for larger purchases with warranties because of its warranty protection. We use WF Visa for other CC purchases. It pays 1.5% for everything. Last year we got $225 back from Costco Visa and probably a $100 or so from WF Visa. We have used debit cards for groceries (about $8000 a year), home improvement stores, clothing and lots of other things. My rough guess is that we can redirect at least $30k from debit to credit cards

I do not want to have a number of CCs, each suited for particular types of transactions and only save $100 or $200 a year. For example, the Amex Blue would net me $175 over current CCs for groceries. That is not enough to incent me to get another CC. My preference is to keep Costco and possibly swap WF for something else provided it is worth it.

What cards should we consider or is what we have ok given our situation and preferences?
If you just want simple cash back on one card, there are some 2% options. Citi Double Cash, Fidelity Visa and PayPal MasterCard.

Other wildcard options that can be single card but have requirements:
Schwab Amex Platinum can earn and cash Amex MR points effectively at a rate of 2.5% cashback. This has flexibility if you do occasional points based traveling. $550 annual fee though.

Bank of America can be good for a single card too particularly if you're willing to hold $100k in assets there (this does include their brokerage side in Merrell Edge, so doesn't need to be cash at least) to qualify for Platinum Honors status which boosts rewards on their credit cards.

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willthrill81
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Re: Best credit card for grocery rewards

Post by willthrill81 » Wed May 20, 2020 10:05 am

It depends greatly on where you are buying your groceries.

We buy most of ours at Fred Meyer. We learned the hard way that Amex categorizes them as a supercenter or something similar and not as a grocery store, hence, the 6% cashback does not work for them. I believe that this is true of Wal-Mart and Target as well.
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Re: Best credit card for grocery rewards

Post by FrugalProfessor » Wed May 20, 2020 12:04 pm

https://frugalprofessor.com/boa-raise-c ... g-savings/
https://frugalprofessor.com/best-credit ... 9-edition/

~8.25% cash back at walmart (first link)
5.25% cash back (+ 2% executive) at costco

Conditional on 100k at ME.

Pretty good system. I have 5 kids, so we eat a lot of food. The cash back adds up.
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Re: Best credit card for grocery rewards

Post by H-Town » Wed May 20, 2020 12:19 pm

willthrill81 wrote:
Wed May 20, 2020 10:05 am
It depends greatly on where you are buying your groceries.

We buy most of ours at Fred Meyer. We learned the hard way that Amex categorizes them as a supercenter or something similar and not as a grocery store, hence, the 6% cashback does not work for them. I believe that this is true of Wal-Mart and Target as well.
^ this. I wish AMEX would widen their groceries coding.

Still, I buy groceries mostly from HEB (those from Texas may have heard of HEB). It's 6%. I keep track of the benefit of the "preferred" card vs. the regular no-fee AMEX blue cash card. We come out ahead every year. So I still keep the preferred blue cash.

Savermom
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Re: Best credit card for grocery rewards

Post by Savermom » Wed May 20, 2020 12:37 pm

Nate7out wrote:
Tue May 19, 2020 8:48 pm
musicmom wrote:
Tue May 19, 2020 8:02 pm
Amex Blue Cash Preferred.
It does have an annual fee $99

But 6% on groceries and streaming services year round.
I have the old Amex Blue cash, never updated it. 5% on gas groceries and drugstores. 1.5% everything else. No fees. There is a min spend before 5%, but I determined I come out ahead. Hence I did not update. Back in the day you could buy I bonds, get cash back and quickly get to the high rewards tier. Alas, no more.

For a new card I would go with preferred.
Actually, this old card is 1 percent on everything else now. You have to spend 6,500 in a calendar year to start earning the 1 percent and 5 percent groceries/gas. It used to be 1.5 percent on everything else though.

TravelGeek
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Re: Best credit card for grocery rewards

Post by TravelGeek » Wed May 20, 2020 12:39 pm

BeneIRA wrote:
Tue May 19, 2020 7:57 pm

A lot of Amex and Chase cards have bonuses. For Amex through 7/31 and for Chase through 6/30. If you don't max out the categories, buy grocery gift cards.
Or other gift cards such as Amazon, ARCO gas, airlines.... okay, maybe not airlines, but basically prepay for stuff that you will use in the not too distant future ;)

Nate7out
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Re: Best credit card for grocery rewards

Post by Nate7out » Wed May 20, 2020 1:54 pm

Savermom wrote:
Wed May 20, 2020 12:37 pm
Nate7out wrote:
Tue May 19, 2020 8:48 pm
musicmom wrote:
Tue May 19, 2020 8:02 pm
Amex Blue Cash Preferred.
It does have an annual fee $99

But 6% on groceries and streaming services year round.
I have the old Amex Blue cash, never updated it. 5% on gas groceries and drugstores. 1.5% everything else. No fees. There is a min spend before 5%, but I determined I come out ahead. Hence I did not update. Back in the day you could buy I bonds, get cash back and quickly get to the high rewards tier. Alas, no more.

For a new card I would go with preferred.
Actually, this old card is 1 percent on everything else now. You have to spend 6,500 in a calendar year to start earning the 1 percent and 5 percent groceries/gas. It used to be 1.5 percent on everything else though.
Thanks for that info. I was not aware. When they first offered the upgrade, I did a spreadsheet and the old card was better than the new card with fee. Haven't checked it since except I did not notice a significant drop in rewards.

I thought the rewards were 1% up to the 6500 and then the 2 higher tiers kicked in. I'll have to take a closer look.

musicmom
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Re: Best credit card for grocery rewards

Post by musicmom » Wed May 20, 2020 4:07 pm

So, am I getting this right?
I can get 6% cash back on Amazon gift cards bought at a grocery store using my Amex blue preferred card?

TravelGeek
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Re: Best credit card for grocery rewards

Post by TravelGeek » Wed May 20, 2020 10:41 pm

musicmom wrote:
Wed May 20, 2020 4:07 pm
So, am I getting this right?
I can get 6% cash back on Amazon gift cards bought at a grocery store using my Amex blue preferred card?
Yes, up to $6000 in spend/year.

I use different cards, but I always have an Amazon gift card balance and rarely use an actual credit card. An exception would be when I want to be sure I have the purchase protection/extended warranty of the card.

decapod10
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Re: Best credit card for grocery rewards

Post by decapod10 » Wed May 20, 2020 11:05 pm

musicmom wrote:
Wed May 20, 2020 4:07 pm
So, am I getting this right?
I can get 6% cash back on Amazon gift cards bought at a grocery store using my Amex blue preferred card?
Yes, you can get 6% cash back on any gift card you purchase at a grocery store. We are currently using an Amex Gold card (which has a $25k spend limit on groceries), but same idea. Though I usually just use my Amazon Chase card for Amazon specifically for the convenience, we buy lots of other gift cards from the grocery store to get the bonus points. We spend a lot at Disney, for example, so we buy a lot of Disney gift cards there. Also Netflix, Google cards (for YouTube TV), Target, eBay, Southwest Airlines, most department stores, Best Buy etc. Most major retailers you can think of. In addition, our supermarket (Safeway) gives gas points as well which are worth roughly 3% cash back, so it's not a bad discount.

Grocery store credit card bonuses are one of the most useful categories if you're willing to go the gift card route.

musicmom
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Re: Best credit card for grocery rewards

Post by musicmom » Thu May 21, 2020 2:06 am

Wow. Not sure how Ive missed the whole gift card angle to this point.
Thanks for the education!

mouses
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Re: Best credit card for grocery rewards

Post by mouses » Thu May 21, 2020 3:31 am

WS1 wrote:
Tue May 19, 2020 10:06 pm
The magic of the Blue Cash Preferred is it’s 6% groceries and 3% on gas. If you don’t hit the $6000 grocery store cap every calendar year it’s not worth it.
I applied for that card and was told I needed a letter from a financial institution verifying my address and signed by some particular employee with the employee's personal contact info. The two credit unions I asked about that had never heard of such a thing and were not set up to do it.

So I wrote the Amex CEO and some clueless person called me and said it was necessary because they suspected fraud. I was never able to find out what they were concerned about.

This was very annoying, but none of my interactions with Amex over the years have ever gone well. I should know better than to deal with either them or BofA.

Jags4186
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Re: Best credit card for grocery rewards

Post by Jags4186 » Thu May 21, 2020 5:31 am

Nate7out wrote:
Wed May 20, 2020 1:54 pm
Savermom wrote:
Wed May 20, 2020 12:37 pm
Nate7out wrote:
Tue May 19, 2020 8:48 pm
musicmom wrote:
Tue May 19, 2020 8:02 pm
Amex Blue Cash Preferred.
It does have an annual fee $99

But 6% on groceries and streaming services year round.
I have the old Amex Blue cash, never updated it. 5% on gas groceries and drugstores. 1.5% everything else. No fees. There is a min spend before 5%, but I determined I come out ahead. Hence I did not update. Back in the day you could buy I bonds, get cash back and quickly get to the high rewards tier. Alas, no more.

For a new card I would go with preferred.
Actually, this old card is 1 percent on everything else now. You have to spend 6,500 in a calendar year to start earning the 1 percent and 5 percent groceries/gas. It used to be 1.5 percent on everything else though.
Thanks for that info. I was not aware. When they first offered the upgrade, I did a spreadsheet and the old card was better than the new card with fee. Haven't checked it since except I did not notice a significant drop in rewards.

I thought the rewards were 1% up to the 6500 and then the 2 higher tiers kicked in. I'll have to take a closer look.
Actually :wink:

The old blue cash rewards break down as follows:

First $6500 spend:
0.5% cashback on non-bonus categories
1% cashback on gas, grocery, and drug

Next $50,000 in spend
1% cashback on non-bonus categories
5% cashback on gas, grocery, and drug

Nate7out
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Re: Best credit card for grocery rewards

Post by Nate7out » Thu May 21, 2020 5:38 am

Nate7out wrote:
Wed May 20, 2020 1:54 pm
Savermom wrote:
Wed May 20, 2020 12:37 pm
Nate7out wrote:
Tue May 19, 2020 8:48 pm
musicmom wrote:
Tue May 19, 2020 8:02 pm
Amex Blue Cash Preferred.
It does have an annual fee $99

But 6% on groceries and streaming services year round.
I have the old Amex Blue cash, never updated it. 5% on gas groceries and drugstores. 1.5% everything else. No fees. There is a min spend before 5%, but I determined I come out ahead. Hence I did not update. Back in the day you could buy I bonds, get cash back and quickly get to the high rewards tier. Alas, no more.

For a new card I would go with preferred.
Actually, this old card is 1 percent on everything else now. You have to spend 6,500 in a calendar year to start earning the 1 percent and 5 percent groceries/gas. It used to be 1.5 percent on everything else though.
Thanks for that info. I was not aware. When they first offered the upgrade, I did a spreadsheet and the old card was better than the new card with fee. Haven't checked it since except I did not notice a significant drop in rewards.

I thought the rewards were 1% up to the 6500 and then the 2 higher tiers kicked in. I'll have to take a closer look.
Savermom was, of course, correct. I had to download my cardmember agreement. One other thing I found out about the old card that still makes it better, it is not capped at $6000 spending for rewards, it goes up to $50,0000. For me the $6500 min. is about 3 months total spend and then I get 5% back on about $1200/month*9 = $540, plus the prior 1% and 0.5% up to $6500 and outside the main categories. Usually around $700ish per year. I buy everything at Meijer and it gets coded as groceries.

$6000*.06-$95 = $265. Way less benefit on groceries.

I also use 5% Discover, but it is usually only groceries 1 quarter per year.

I am intrigued by the costco visa - I basically stopped going to costco when they dropped Amex, I didn't want to get another CC.

Nate7out
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Re: Best credit card for grocery rewards

Post by Nate7out » Thu May 21, 2020 5:40 am

Jags4186 wrote:
Thu May 21, 2020 5:31 am
Nate7out wrote:
Wed May 20, 2020 1:54 pm
Savermom wrote:
Wed May 20, 2020 12:37 pm
Nate7out wrote:
Tue May 19, 2020 8:48 pm
musicmom wrote:
Tue May 19, 2020 8:02 pm
Amex Blue Cash Preferred.
It does have an annual fee $99

But 6% on groceries and streaming services year round.
I have the old Amex Blue cash, never updated it. 5% on gas groceries and drugstores. 1.5% everything else. No fees. There is a min spend before 5%, but I determined I come out ahead. Hence I did not update. Back in the day you could buy I bonds, get cash back and quickly get to the high rewards tier. Alas, no more.

For a new card I would go with preferred.
Actually, this old card is 1 percent on everything else now. You have to spend 6,500 in a calendar year to start earning the 1 percent and 5 percent groceries/gas. It used to be 1.5 percent on everything else though.
Thanks for that info. I was not aware. When they first offered the upgrade, I did a spreadsheet and the old card was better than the new card with fee. Haven't checked it since except I did not notice a significant drop in rewards.

I thought the rewards were 1% up to the 6500 and then the 2 higher tiers kicked in. I'll have to take a closer look.
Actually :wink:

The old blue cash rewards break down as follows:

First $6500 spend:
0.5% cashback on non-bonus categories
1% cashback on gas, grocery, and drug

Next $50,000 in spend
1% cashback on non-bonus categories
5% cashback on gas, grocery, and drug
Agreed. You posted while I was typing.

MrJedi
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Re: Best credit card for grocery rewards

Post by MrJedi » Thu May 21, 2020 6:10 am

Nate7out wrote:
Thu May 21, 2020 5:38 am
Nate7out wrote:
Wed May 20, 2020 1:54 pm
Savermom wrote:
Wed May 20, 2020 12:37 pm
Nate7out wrote:
Tue May 19, 2020 8:48 pm
musicmom wrote:
Tue May 19, 2020 8:02 pm
Amex Blue Cash Preferred.
It does have an annual fee $99

But 6% on groceries and streaming services year round.
I have the old Amex Blue cash, never updated it. 5% on gas groceries and drugstores. 1.5% everything else. No fees. There is a min spend before 5%, but I determined I come out ahead. Hence I did not update. Back in the day you could buy I bonds, get cash back and quickly get to the high rewards tier. Alas, no more.

For a new card I would go with preferred.
Actually, this old card is 1 percent on everything else now. You have to spend 6,500 in a calendar year to start earning the 1 percent and 5 percent groceries/gas. It used to be 1.5 percent on everything else though.
Thanks for that info. I was not aware. When they first offered the upgrade, I did a spreadsheet and the old card was better than the new card with fee. Haven't checked it since except I did not notice a significant drop in rewards.

I thought the rewards were 1% up to the 6500 and then the 2 higher tiers kicked in. I'll have to take a closer look.
Savermom was, of course, correct. I had to download my cardmember agreement. One other thing I found out about the old card that still makes it better, it is not capped at $6000 spending for rewards, it goes up to $50,0000. For me the $6500 min. is about 3 months total spend and then I get 5% back on about $1200/month*9 = $540, plus the prior 1% and 0.5% up to $6500 and outside the main categories. Usually around $700ish per year. I buy everything at Meijer and it gets coded as groceries.

$6000*.06-$95 = $265. Way less benefit on groceries.

I also use 5% Discover, but it is usually only groceries 1 quarter per year.

I am intrigued by the costco visa - I basically stopped going to costco when they dropped Amex, I didn't want to get another CC.
I see that first $6500 as equivalent to the $95 annual fee. Since you can only get 0.5% on that vs using a 2% card. 1.5% difference on $6500 = $97.50.

I could still see the old card being pretty good if you can front load that $6500 quickly and have a huge amount of groceries in the year, like $15+k. Otherwise I generally get 5-6% back on $12k groceries all year using a combination of the newer Amex, Chase Freedom, and Discover.

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Re: Best credit card for grocery rewards

Post by McDougal » Thu May 21, 2020 6:24 am

mouses wrote:
Thu May 21, 2020 3:31 am
WS1 wrote:
Tue May 19, 2020 10:06 pm
The magic of the Blue Cash Preferred is it’s 6% groceries and 3% on gas. If you don’t hit the $6000 grocery store cap every calendar year it’s not worth it.
I applied for that card and was told I needed a letter from a financial institution verifying my address and signed by some particular employee with the employee's personal contact info. The two credit unions I asked about that had never heard of such a thing and were not set up to do it.

So I wrote the Amex CEO and some clueless person called me and said it was necessary because they suspected fraud. I was never able to find out what they were concerned about.

This was very annoying, but none of my interactions with Amex over the years have ever gone well. I should know better than to deal with either them or BofA.
Is your credit frozen at any of the reporting companies?

Jags4186
Posts: 4695
Joined: Wed Jun 18, 2014 7:12 pm

Re: Best credit card for grocery rewards

Post by Jags4186 » Thu May 21, 2020 6:26 am

If you have the ability to max out the $56,500 spend all in bonus categories, at a cost of $12.89/$1000 you still earn about $2000 in rewards. Otherwise you need to look at your year long blended spend to determine if it’s worth using the OBC.

Based on the above poster described spend he’s averaging north of 2.6% cashback overall, which is pretty good for someone not looking to absolutely max everything.

onourway
Posts: 2448
Joined: Thu Dec 08, 2016 3:39 pm

Re: Best credit card for grocery rewards

Post by onourway » Thu May 21, 2020 6:28 am

MrJedi wrote:
Thu May 21, 2020 6:10 am

I see that first $6500 as equivalent to the $95 annual fee. Since you can only get 0.5% on that vs using a 2% card. 1.5% difference on $6500 = $97.50.

I could still see the old card being pretty good if you can front load that $6500 quickly and have a huge amount of groceries in the year, like $15+k. Otherwise I generally get 5-6% back on $12k groceries all year using a combination of the newer Amex, Chase Freedom, and Discover.
Yep, this is what I do. I front-load expenses onto the Blue Cash, typically takes me 1-2 months. Some years these months align with the Chase Freedom grocery bonus quarter. :D

We spend $12k+ on groceries, plus the Blue Cash gets us 5% back on gas as well.

mouses
Posts: 4131
Joined: Sat Oct 24, 2015 12:24 am

Re: Best credit card for grocery rewards

Post by mouses » Thu May 21, 2020 10:58 am

McDougal wrote:
Thu May 21, 2020 6:24 am
mouses wrote:
Thu May 21, 2020 3:31 am
WS1 wrote:
Tue May 19, 2020 10:06 pm
The magic of the Blue Cash Preferred is it’s 6% groceries and 3% on gas. If you don’t hit the $6000 grocery store cap every calendar year it’s not worth it.
I applied for that card and was told I needed a letter from a financial institution verifying my address and signed by some particular employee with the employee's personal contact info. The two credit unions I asked about that had never heard of such a thing and were not set up to do it.

So I wrote the Amex CEO and some clueless person called me and said it was necessary because they suspected fraud. I was never able to find out what they were concerned about.

This was very annoying, but none of my interactions with Amex over the years have ever gone well. I should know better than to deal with either them or BofA.
Is your credit frozen at any of the reporting companies?
I temporarily unfroze it when I applied for the card, and when I ran into this fraud stuff later I asked if that were the problem, and they said no, they had already accessed my credit reports. So I don't have a clue as to what this is about. My credit score has always been 800+ as far as I know.

go_mets
Posts: 584
Joined: Wed Oct 21, 2015 11:49 am

Re: Best credit card for grocery rewards

Post by go_mets » Thu May 21, 2020 11:11 am

mouses wrote:
Thu May 21, 2020 10:58 am
McDougal wrote:
Thu May 21, 2020 6:24 am
mouses wrote:
Thu May 21, 2020 3:31 am
WS1 wrote:
Tue May 19, 2020 10:06 pm
The magic of the Blue Cash Preferred is it’s 6% groceries and 3% on gas. If you don’t hit the $6000 grocery store cap every calendar year it’s not worth it.
I applied for that card and was told I needed a letter from a financial institution verifying my address and signed by some particular employee with the employee's personal contact info. The two credit unions I asked about that had never heard of such a thing and were not set up to do it.

So I wrote the Amex CEO and some clueless person called me and said it was necessary because they suspected fraud. I was never able to find out what they were concerned about.

This was very annoying, but none of my interactions with Amex over the years have ever gone well. I should know better than to deal with either them or BofA.
Is your credit frozen at any of the reporting companies?
I temporarily unfroze it when I applied for the card, and when I ran into this fraud stuff later I asked if that were the problem, and they said no, they had already accessed my credit reports. So I don't have a clue as to what this is about. My credit score has always been 800+ as far as I know.
I ran into this problem with Capital One.
I refused to do the verification since I already had a credit card with them.
Made no sense.
Never activated the card and missed out on the sign in bonus. The card still shows in my account.


.

carolinaman
Posts: 4126
Joined: Wed Dec 28, 2011 9:56 am
Location: North Carolina

Re: Best credit card for grocery rewards

Post by carolinaman » Fri May 22, 2020 9:00 am

carolinaman wrote:
Wed May 20, 2020 8:53 am
Covid 19 has changed our payment strategy. We used to use CCs mostly for large purchases, travel, and gas; and debit cards for everything else. We are now using CCs for everything including food. It eliminates the need to key pin and touch card reader.

We have Costco Visa which rewards 4% for gas, travel and restaurants, 2% at Costco and 1% for everything else. I will continue to use it for larger purchases with warranties because of its warranty protection. We use WF Visa for other CC purchases. It pays 1.5% for everything. Last year we got $225 back from Costco Visa and probably a $100 or so from WF Visa. We have used debit cards for groceries (about $8000 a year), home improvement stores, clothing and lots of other things. My rough guess is that we can redirect at least $30k from debit to credit cards

I do not want to have a number of CCs, each suited for particular types of transactions and only save $100 or $200 a year. For example, the Amex Blue would net me $175 over current CCs for groceries. That is not enough to incent me to get another CC. My preference is to keep Costco and possibly swap WF for something else provided it is worth it.

What cards should we consider or is what we have ok given our situation and preferences?
After reading this thread and a little other research, I applied for the Amex Blue Cash Preferred which rewards 6% on groceries up to $6k a year. We will use this for groceries and continue to use Costco Visa for gas, travel, restaurants and Costco. Will use WF CC for everything else. Since we are now using CC for groceries this will work nicely and I get a $300 bonus for spending $1,000 in first 3 months which we will easily do. I like to keep things simple but I do not think this unduly complicates things.

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