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How to Choose the Best Credit Card for Groceries

6 min read

Last Updated: April 23, 2025

Table of contents

Key Takeaways

A credit card with grocery rewards could help you manage rising food costs.
The right card can earn you rewards anytime you make everyday purchases, including groceries.
To choose the best rewards card for you, consider the amount you spend on groceries and whether the rewards you’ll earn outweigh the APR or fees associated with the card.

Inflation has strained families’ budgets across the United States. The USDA reports that grocery prices increased by 3% from January 2024 to January 2025. Higher costs may make it harder to put food on the table. Fortunately, many strategies could make food costs easier to manage, like developing careful budgets, growing produce in a garden, and even choosing a beneficial credit card. With the right rewards credit card, you could earn rewards on every trip to the grocery store.

What is a grocery credit card?

A “grocery credit card” is any card offering special rewards for each grocery purchase. Rewards credit cards encourage you to use your credit card to reap benefits like miles or cash back on every eligible purchase. If you do the bulk of your family’s grocery shopping, a credit option with grocery rewards could make a great everyday card.

Types of grocery credit cards

Several different types of credit cards offer special rewards for grocery purchases.

Store credit cards: Some grocery retailers offer credit cards you can use only in affiliated grocery stores. Store cards may come with perks and no annual fee, but they’re not useful for other everyday purchases. Unlike a gift card, though, they may affect your credit score.
Co-branded credit cards: Co-branded credit cards are offered through a partnership between a credit card issuer and a retail brand. Major grocery chains may offer co-branded cards. You can use a co-branded card anywhere you might use any other card, but you’ll likely earn the highest rewards rate at the partner store.
Tiered rewards credit cards: Tiered cash back credit cards usually earn cash back on all eligible purchases, with a higher rewards rate in certain categories, like grocery stores. Even if you switch up your grocery store, you can still earn rewards with a tiered card.

The right type of grocery credit card for you depends on your priorities and grocery spending habits. If you’re looking for a solid everyday card, a tiered rewards card may be a good fit.

How can a grocery credit card help with your budget?

A rewards credit card that aligns with your shopping habits and financial goals could help you manage your budget more easily. Typically, you earn rewards as a specified percentage of your purchase. You could rack up rewards quickly if you often make big shopping trips for your household.

Where you go on your shopping trips could matter as much as the amount you spend. Do you shop at chain grocery stores, wholesale clubs, or through delivery apps? Does the rewards card include your favorite shops among the places you could earn rewards? You may be able to redeem rewards as cash, a statement credit, or a gift card that you can use to cover some future grocery costs.

Whether you want to work toward long-term financial goals or simply save money on groceries, a rewards card could help. One approach is letting your rewards grow, then redeeming them as statement credits.

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How can a credit card for groceries help your credit?

Used responsibly, a grocery credit card can be a helpful tool for building credit history.

Regardless of your preferred payment method, you likely have to buy groceries on a somewhat regular basis. That might mean you already have a set budget for grocery spending. By using your credit card for every grocery purchase and then paying down your balance right away, you can establish a good payment history.

What to consider when comparing the best credit cards for groceries

You have options if you’re looking for a rewards credit card to help with groceries. As you shop for the best fit, consider the following factors.

Rewards for grocery store spending

You could earn cash back rewards every time you buy groceries with a rewards credit card. Cash back programs reward you a certain percentage of an eligible purchase back as cash. Each credit card may work differently. Many tiered cards offer a flat rate across all purchases, with bonus cash back in specific categories. The best credit card for groceries may provide additional rewards at grocery stores.

Certain cards allow you to change bonus categories over time. They could suit your family if your expenses tend to vary. For example, you may want to shift bonus categories from groceries to clothes or other back-to-school needs around the fall if you have school-aged children.

Did you know?

With the Discover it^® Cash Back Credit Card, you can earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, you earn unlimited 1% cash back on all other purchases–automatically.

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Also, be on the lookout for credit cards that offer new cardmembers additional opportunities to earn rewards. This could mean your grocery spending can take your rewards even further. For example, Discover automatically matches the cash back you've earned on your credit card at the end of your first year.²

Credit card fees

As you compare credit cards, consider how fees may affect your rewards. Some cards charge late payment fees or annual fees. Discover charges no annual fee on every credit card. However, other rewards credit cards sometimes come with high annual fees. It’s usually a good idea to make sure annual fees aren’t likely to exceed the rewards you earn.

For example, choosing a card that gives you 5% in rewards on groceries but charges $95 means that you would have to spend more than $1,900 before your rewards offset the annual fee. If you don’t typically charge that much in a year, you may want a card with a lower fee or no fee at all.

Other fees to keep in mind include late penalty fees, balance transfer fees, and cash advance fees.

Interest rates

If interest builds quickly, it may cut into your rewards. Make sure to pay off your entire balance every month to avoid interest charges. Some credit cards offer low promotional interest rates for new customers. If you think you might carry a balance, consider the card’s interest rate and whether they offer a low intro APR for a period after account opening. If you can repay your balance before the low intro APR period ends, you may keep your interest charges to a minimum.

The bottom line

As grocery prices increase, using a rewards credit card wisely could help you better manage your budget. The best grocery credit card for you should align with your purchases, needs, and lifestyle. With the right credit card, you can earn rewards each time you fill your cart.

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