Finding the right credit card can significantly impact your monthly budget, especially when it comes to everyday expenses like groceries and gas. With strategic use, a rewards credit card focused on these categories can help you earn substantial cashback or points, effectively saving you money on essential purchases.
This article aims to guide you through the best credit card options for maximizing your rewards on groceries and gas, providing a detailed comparison and insights to help you make an informed decision.
Credit Card Comparison Table: Groceries and Gas Rewards
| Credit Card | Rewards Structure | Key Benefits |
|---|---|---|
| Blue Cash Preferred® Card from American Express | 6% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations and transit, 1% cash back on other purchases. | Strong rewards on groceries and streaming, intro APR offer, Amex Offers, Purchase Protection, Extended Warranty. |
| Chase Freedom Flex℠ | 5% cash back on rotating quarterly categories (often includes grocery stores and gas stations, up to a quarterly maximum), 5% on travel purchased through Chase Ultimate Rewards, 3% on dining and drugstores, 1% on all other purchases. | Rotating bonus categories offer high earning potential, no annual fee, Chase Ultimate Rewards points are valuable for travel redemptions, purchase protection. |
| Citi Custom Cash® Card | 5% cash back on your highest spending category each billing cycle (up to $500 spent), 1% cash back on all other purchases. | Simple rewards structure, automatic bonus on your top spending category, no annual fee, introductory APR offer. |
| Discover it® Cash Back | 5% cash back on rotating quarterly categories (often includes grocery stores and gas stations, up to a quarterly maximum), 1% cash back on all other purchases. | Rotating bonus categories, Discover matches all cashback earned in the first year, no annual fee. |
| Capital One SavorOne Cash Rewards Credit Card | 3% cash back on dining, entertainment, streaming services and at grocery stores; 1% cash back on all other purchases. | Solid rewards on dining and entertainment, no annual fee, extended warranty, travel accident insurance. |
Detailed Explanations
Blue Cash Preferred® Card from American Express
This card is a powerhouse for grocery shoppers. It offers 6% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%), making it ideal for families with high grocery bills. In addition to groceries, you also get 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations and transit, and 1% cash back on all other purchases. While it has an annual fee, the high rewards rate can easily offset it for many users. American Express also offers valuable benefits like Purchase Protection and Extended Warranty, adding extra value to the card.
Chase Freedom Flex℠
The Chase Freedom Flex℠ card features a unique rotating category system. Every quarter, it offers 5% cash back on selected categories (up to a quarterly maximum spend, after which you earn 1%). These categories frequently include grocery stores and gas stations. Outside of the quarterly bonus, you get 5% on travel purchased through Chase Ultimate Rewards, 3% on dining and drugstores, and 1% on all other purchases. The major advantage is that there is no annual fee. The Chase Ultimate Rewards points earned can be incredibly valuable, especially when redeemed for travel through Chase's portal or transferred to partner airlines and hotels.
Citi Custom Cash® Card
This card offers a straightforward approach to rewards. You earn 5% cash back on your highest spending category each billing cycle (up to $500 spent), and 1% cash back on all other purchases. The simplicity of this card makes it attractive, as you don't need to track rotating categories. If groceries or gas are consistently your top spending category, you'll automatically earn the 5% bonus. The card also has no annual fee and often comes with an introductory APR offer.
Discover it® Cash Back
Similar to the Chase Freedom Flex℠, the Discover it® Cash Back card offers 5% cash back on rotating quarterly categories (up to a quarterly maximum). These categories often include grocery stores and gas stations. All other purchases earn 1% cash back. A significant perk is Discover's cashback match at the end of your first year. They match all the cashback you've earned, effectively doubling your rewards. The card also has no annual fee.
Capital One SavorOne Cash Rewards Credit Card
The Capital One SavorOne Cash Rewards Credit Card provides a consistent rewards structure. You earn 3% cash back on dining, entertainment, streaming services and at grocery stores; 1% cash back on all other purchases. While the grocery rewards rate isn't as high as some other cards, the inclusion of dining and entertainment makes it a well-rounded option. The card has no annual fee and comes with benefits like extended warranty and travel accident insurance.
Frequently Asked Questions
Which card is best for someone who spends a lot on groceries?
The Blue Cash Preferred® Card from American Express is generally considered the best, thanks to its 6% cash back at U.S. supermarkets (on up to $6,000 per year). This high rewards rate can lead to significant savings for frequent grocery shoppers.
Which card is best for someone who spends a lot on gas?
The Blue Cash Preferred® Card from American Express and Chase Freedom Flex℠ are great options. The Blue Cash Preferred® Card offers 3% cash back at U.S. gas stations and the Chase Freedom Flex℠ offers 5% cash back on rotating categories which often includes gas.
Which card has no annual fee?
The Chase Freedom Flex℠, Citi Custom Cash® Card, Discover it® Cash Back, and Capital One SavorOne Cash Rewards Credit Card all have no annual fee. This makes them attractive options for those who want to earn rewards without paying an annual fee.
What are rotating categories?
Rotating categories are bonus reward categories that change every quarter. Credit cards like the Chase Freedom Flex℠ and Discover it® Cash Back offer 5% cash back in these categories, often including grocery stores and gas stations.
What are Chase Ultimate Rewards points worth?
Chase Ultimate Rewards points are typically worth 1 cent each when redeemed for cash back, but their value can increase significantly when redeemed for travel through Chase's portal or transferred to partner airlines and hotels. They can be worth 1.25 to 1.5 cents per point or even more, depending on the redemption.
What is an introductory APR offer?
An introductory APR offer provides a low or zero percent interest rate on purchases or balance transfers for a limited time. This can be beneficial for those who plan to make a large purchase or transfer a balance from another card.
Conclusion
Choosing the best credit card for groceries and gas depends on your spending habits and preferences. If you spend a significant amount on groceries and are willing to pay an annual fee, the Blue Cash Preferred® Card from American Express is a solid choice. For those seeking a no-annual-fee option with rotating categories, the Chase Freedom Flex℠ and Discover it® Cash Back offer excellent earning potential. The Citi Custom Cash® Card offers simplicity with its automatic bonus on your top spending category, while the Capital One SavorOne Cash Rewards Credit Card provides consistent rewards on dining, entertainment, and groceries. Carefully consider your spending patterns and the features that matter most to you to find the perfect card for your needs.