Image source: Getty Images
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.
Save: This credit card has one of the longest intro 0% interest periods around
More: Save while you pay off debt with one of these top-rated balance transfer credit cards
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.
