How to find the right grocery credit card

For many people, groceries are a major monthly expense, so it makes sense to find a way to earn rewards on those purchases.

Grocery store credit cards may help you earn points or miles to redeem on rewards or get cash back when you hit the grocery store. But choosing the right grocery credit card may depend on how you plan to use the card, what cards you qualify for and what kind of rewards or cash back you may be interested in.

Let’s explore the types of grocery store credit cards and how to choose the right one for you.

Types of grocery credit cards

When you're trying to get the most out of your grocery spending, there are several options to consider: cards that give you additional points, miles or cash back for grocery spending, cards that have a high flat rate of rewards across all spending categories and credit cards that adapt to your spending.

Rewards credit cards with a high rate of rewards on purchases

Whether you're at the supermarket, the grocery store or any other store, rewards cards with a high, flat rate of earnings may present a great opportunity. If you tend to spend equal amounts on grocery stores and other categories of purchases, you may want to consider this type of credit card.

Rewards credit cards with grocery or supermarket spending categories

Some cards may offer the chance to earn more rewards per dollar spent at grocery stores compared to other spending categories. This may include purchases made in store as well as grocery delivery services, depending on the credit card. If you spend a lot on groceries each month compared to other spending categories, this type of credit card may make sense.

Rewards credit cards that adapt to your spending

Sometimes spending habits are less predictable. For example, you might splurge at grocery stores one month and spend more on restaurants, entertainment or travel the next. If that sounds like you, a card that has adaptable rewards might be the right choice. 

How do grocery credit cards work?

Grocery credit cards typically let you earn cash back, points or miles on your grocery store spending. The way you may redeem your rewards can vary.

For example, cash back can typically be redeemed as a statement credit on your credit card bill, or as a check by mail or direct deposit, but terms will vary depending on your card.

Points can typically be redeemed for things like gift cards, travel expenses or cash back. Miles are generally redeemed for travel expenses, like flights or hotel stays.

How to earn rewards at grocery stores

For most grocery rewards credit cards, all you need to do is use the card when you shop and keep your account in good standing by making minimum payments on time. Then, your reward points can increase.

How grocery store cards can help your credit

Using a grocery store credit card responsibly may help you build credit over time. For example, paying off your balance each month may help you lower your credit utilization. That’s the amount of revolving debt in use compared to your overall available credit. On-time payments may help your credit, too.

How to choose a grocery store credit card

The right grocery credit card depends on how much flexibility you want, both in terms of earning and redeeming points, miles or cash back. Your spending habits will likely play a deciding role here. Some of the other factors you may consider include:

• APR and fees: Lower APRs are more favorable, but you may need better credit to qualify for one. Similarly, it’s important to understand a grocery store credit card’s fees to help minimize your expenses. That way, they won’t cancel out the reward earnings.
• Bonus offers: Some credit cards may offer the chance to earn additional points or cash back when you open the card and meet certain requirements, like spending a specific amount within a set time.

Which Citi credit cards offer additional rewards at grocery stores?

• Citi Double Cash^® Card: Earn unlimited 2% cash back on all purchases, including 1% cash back when you buy and 1% cash back as you pay.
• Citi Custom Cash^® Card: Earn 5% cash back on up to the first $500 spent on purchases in your top eligible spend category each billing cycle. Grocery stores are one of 10 eligible spend categories for 5% cash back.
• American Airlines AAdvantage^® MileUp^® Card: Earn 2 AAdvantage^® miles per dollar spent at grocery stores, including grocery delivery services.

How to apply for a grocery credit card

Applying for a grocery store credit card typically involves a hard credit check. Checking your credit report before applying can help you understand where you stand and look for cards that may work for you. Credit card pre-qualification may also help when shopping for a new credit card. Typically, pre-qualification uses a soft credit check, which doesn’t impact your credit. Although it’s not a guarantee of approval, getting pre-qualified may help you understand if you’re likely to qualify for a certain credit card.

Once you’re ready, you may submit your application and provide information like your Social Security Number or Individual Tax Identification Number along with your income and housing payment details.

Interested in exploring Citi’s credit cards, including grocery store cards? Learn more here.

Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.