Ways to Save When Using Credit Cards for Groceries
When used responsibly, credit cards provide a convenient way to save money at the grocery store. We’ve got a few tips to help you make the most out of every swipe – Be mindful these tips only make sense if you are able to pay off your credit card balance monthly. One month’s compounded interest alone can wipe out a year’s worth of cash back rewards.
- When picking a credit card, go for cash back versus miles. Unless you’re an avid traveler dedicated to a single airline, it’s more beneficial to earn cash back rewards you can spend however you want, versus airline miles that often come with strict usage and redemption limitations. Look for a card with no annual fee and at least $1 cash back for every $100 spent (1%). If you spend $150 per week on groceries, that adds up to $78 per year in free groceries alone!
- Take advantage of promotional windows. Many cash back rewards cards have monthly or quarterly promotions where certain categories (groceries, gas) or retailers (Walmart, Target) will bump your cash back from 1% to 5% for example – considering 12 weeks in a quarter, this can really add up. A $150 week grocery budget alone could add up to $90 in free groceries during a single quarter.
- Combine credit card rewards with manufacturer and retailer cash back rewards from Ibotta. In the past 10 years, Ibotta has paid more than $1.2 billion in cash back with many Savers joining the $1000 earnings club. New offers are being added daily, so be sure to check Ibotta before every trip to the grocery store.