Are Grocery Store Credit Cards Worth It?

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Do you spend a lot of money on groceries each month? Don’t miss out on the chance to earn rewards. Find out if a grocery store credit card is right for you. 

Now that we’re paying more to fill up our carts at the grocery store, you may be considering getting a grocery store credit card to earn rewards on your grocery spending. Some grocery retailers promote store-branded rewards credit cards to shoppers. But are these cards worthwhile?

Could a store-branded grocery card provide value?

It’s not uncommon for retailers to promote rewards credit cards. But before opening a new credit card account, you want to research so you choose a card that meets your needs and goals. These rewards cards may provide value if you’re loyal to a particular grocery store and your retailer offers a grocery store card. But it may not be the best option for every shopper.

Here’s what to consider when exploring grocery store credit cards:

Rewards rate: Not all cards have the same rewards potential, so reviewing the rate at which you’ll earn rewards when you make purchases with your card is essential.Purchase categories: Some grocery store cards allow you to earn rewards when you use your card to make purchases at other retailers or in several purchase categories, but not all do. Knowing this information can help you maximize the rewards you earn.Spending cap: Some rewards credit cards have a spending cap for higher rewards earning rates. If one card allows you to earn an unlimited 5% rewards on grocery spending, that’s much different than earning 5% rewards on up to only $2,500 in grocery purchases annually. Be sure to check whether there are spending caps that limit the grocery rewards you can earn with your card.Redemption options: Understanding your redemption options and how to redeem your earned rewards is key. Some retailers may allow shoppers to redeem their rewards as a discount at checkout, while others may apply rewards as a statement credit.Annual fee: Not all credit cards have a yearly fee, but many do. You should never open a new credit card without first checking if there is a yearly fee and reviewing your budget to make sure you can afford it.

Grocery rewards cards may be a better fit for some

Are grocery store credit cards worth it? Some may find these cards to be valuable. But if your local grocer doesn’t offer a rewards credit card or if the card’s features are unattractive, you may want to explore other options. Many other rewards cards and cash back credit cards exist.

Some shoppers use general grocery rewards credit cards, especially those who aren’t loyal to one grocery chain. You can use these cards to earn rewards when buying groceries at different retailers. Some cards may offer higher rewards rates and include valuable benefits.

However, It’s worth noting that some grocery rewards cards don’t allow shoppers to earn rewards at superstores like Target and Walmart. Additionally, some grocery rewards credit cards have spending caps, which could limit the rewards you’re able to earn.

Choose a rewards card that works for you

Only you can decide which rewards credit card will work best for your needs. As always, be sure to review the details of each card before deciding on the right one for you. If you spend significant money on groceries, using a grocery rewards credit card could be a win for your wallet. Check out our list of the best grocery credit cards to explore your card options.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target and Walmart. The Motley Fool has a disclosure policy.

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