How to Find the Right Credit Card for Your Grocery Purchases

Key insights:

• For many people, groceries are a major monthly expense, so it makes sense to find a way to be rewarded for those purchases
• A credit card may help you earn points or miles to redeem on rewards when you shop for groceries
• Citi offers several credit cards with grocery benefits, including:
  • Credit cards that earn ThankYou^® Points such as the Citi Strata^℠ Card, Citi Strata Premier^® Card, and the AT&T Points Plus^®  Card from Citi
  • Credit cards that earn AAdvantage^® miles such as the American Airlines AAdvantage^® MileUp^® Card

Credit cards may help you earn points or miles to redeem for rewards or get cash back when you buy groceries. But every card works differently. Choosing the right credit card for you depends 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 credit cards and how to choose the right one for your grocery purchases.

How do cards for grocery purchases work?

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:

• Cash back programs: Depending on the card issuer, you can typically redeem cash back as a credit on your credit card bill, as a mailed check or via direct deposit
• Points: Points can typically be redeemed for things like gift cards, travel rewards or cash back
• Miles: Miles are generally redeemed for travel expenses, like flights or hotel stays

Some issuers use “points” and “miles” interchangeably, so it's important to understand how you can redeem rewards before applying for a specific card.

Which Citi credit cards offer additional rewards at grocery stores?

Citi offers several credit cards that earn points or miles on grocery store purchases:

• Citi Strata^℠ Card: Earn 3X points on every dollar spent at supermarket
• Citi Strata Premier^® Card: Earn 3X points on every dollar spent at supermarkets
• AT&T Points Plus^® Card from Citi: Earn 2 ThankYou^® Points for every $1 spent at grocery stores, including grocery delivery services
• American Airlines AAdvantage^® MileUp^® Card: Earn 2 AAdvantage^® miles per dollar spent at grocery stores, including grocery delivery services

Types of credit cards for grocery store purchases

When you want 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 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 in-store purchases 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 with a high flat rewards rate on purchases

Some credit cards offer a flat rate of rewards on all purchases, whether you're buying groceries or going to the movies. If you tend to spend equal amounts on grocery stores and other categories of purchases, this type of credit card allows you to consistently earn rewards wherever you spend.

Rewards credit cards that adapt to your spending

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

How to earn rewards at grocery stores

For most 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. As you shop and pay your bill, your reward balance will increase.

How credit cards can help your credit

Using a credit card responsibly may help you build credit over time. By making payments on time each month, you build a positive payment history. Likewise, as you pay off your balance, it lowers your credit utilization, which is the amount of revolving debt in use compared to your overall available credit. Both payment history and account balances are important factors in your credit score.

How to choose a credit card

The right 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: A lower annual percentage rate (APR) is more favorable, but you may need better credit to qualify for one. Similarly, it’s important to understand a 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.

How to apply for a credit card

Applying for a credit card typically involves a hard credit check. Before you apply, consider pre-qualifying to see what offers are available and estimate your chances of approval for certain cards. Generally, pre-qualification uses a soft credit check, which doesn’t impact your credit score. It’s also a good idea to check your credit report before applying to help you understand your credit profile and what cards you could qualify for.

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? 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.