According to the U.S. Department of Agriculture, the average American consumer spends around 6% of their budget on food. Most households allocate a couple hundred dollars each month for groceries.
There are a few options when it comes to 5% cash back category credit cards and dedicated grocery credit cards, so which one do you pick?
You can view credit card offers by going to the "Credit Card Offers" tab. Find offers for the respective cards in "Point Rewards Credit Cards" and "Cash Back Credit Cards." You don't have to use our links, but we're grateful when you do. Thank you for supporting AskSebby!
5% Cash Back Category Credit Cards
The Chase Freedom and Discover It cards usually have at least one quarter each year that has groceries as the 5% cash back category. If you don't plan on spending more than $1,500 per year on groceries, I recommend buying gift cards to your grocery store of choice to maximize the category.
Amex EveryDay vs. Amex Blue Cash
If you plan on spending more than $1,500 on groceries per year, then a dedicated credit card for groceries might be for you.
Check out the spreadsheet below to calculate which card works best for you.
Plug in your own numbers in the calculator here: http://bit.ly/2EnRpEB
Download or Save As your own copy. Modify the YELLOW cells.
The Chase Freedom earns 5x points on select rotating categories each quarter you activate. For Q3 2018 (July-September), the Chase Freedom 5x categories are gas stations, Lyft, and Walgreens.
The Discover It 5% cash back category for Q3 (July-September) 2018 is restaurants. As a reminder, you need to activate the 5% promo to receive the cashback bonus. Earn up to 5% on up to $1,500 in combined category purchases when you activate.
A charge card is a type of credit card where you must pay the statement balance in full each month. Unlike a traditional credit card, you can't just pay a minimum balance.
The Chase Trifecta, which consists of the Chase Freedom Unlimited, Chase Freedom, and either the Chase Sapphire Preferred or the Chase Sapphire Reserve, is the best card system to earn points for free flights.
American Express just launched a cash back card that earns 1.5% on everything to compete with cards like the Chase Freedom Unlimited and the Bank of America Travel Rewards card.
Chase is currently running a banking bonus promotion where you can earn up to $500 for opening a checking and savings account. New customers will receive $300 for opening a Chase Total Checking account and $200 for opening a Chase Savings account.
American Express is enforcing welcome offer restrictions with a new tool. A module will pop up if Amex does not want to grant you a welcome bonus due to too many accounts, signup bonuses received, or introductory APR offers.
Incredible Bank is offering up to $200 to open a free checking account. To receive the extra $100 bonus, you'll need to use a referral code. Use referral code HAA7551 if you want to support Ask Sebby, and we'll both receive $100.
American Express offers are targeted deals that you can find when you login to your Amex account. As a reminder, if you see a deal you like, I recommend adding it to your card because there is usually a limited amount available.
Get discounts on gift cards via Chase Ultimate Rewards, get Amazon credits when you link a Citi or Amex card, new Priority Pass restaurant added to LAX, and more.