Credit cards that can save you money on groceries, gas

Name: Credit cards that save you money
Uploaded: 2020-05-25T18:33:59-05:00
Description: In this Sullivan's Smart Sense, we take a look at credit cards that save you money when you shop for groceries, gas, and more.

Credit cards that save you money

In this Sullivan's Smart Sense, we take a look at credit cards that save you money when you shop for groceries, gas, and more.

Most people pay for groceries and gas with credit cards these days. There are some cards that can save you money when you use them.

The average U.S. household spends about $4,300 a year on groceries, according to the U.S. Bureau of Labor Statistics. The consumer site Nerdwallet recently researched credit cards that can save you the most money when you buy groceries, gas, or just about anything else.

If you spend $5,000 a year on groceries, Nerdwallet says the Blue Cash Preferred Card from American Express offers you a whopping 6% back. That's a savings of $360 a year. It also offers rewards on gas, transit, and streaming services. But it does have a $95 annual fee, so compare any fees to your savings.

If don't want to pay the annual fee, the Blue Cash Everyday Card from American Express offers 3% back.

Warehouse stores such as Walmart, Target and Costco are not considered supermarkets, so some cards won't give you the grocery discount when you shop at those stores. But some stores offer their own cards that can save you money.

Nerdwallet says if you shop at Whole Foods and have an Amazon Prime Membership, the Amazon Prime Rewards Visa Signature Card earns 5% back at Whole Foods and Amazon and 2% at restaurants, gas stations, and drug stores. Spend $5,000 a year on groceries, you can save $250 a year.

The Target REDcard gives you a 5% discount on nearly everything at Target, plus free shipping on online purchases. The savings on spending $5,000 a year on groceries could be $250.

The Costco Anywhere Visa by City earns 2% cash back on groceries, 4% on gas, and 3% on restaurants and some travel. Just remember you'll need a $60 annual membership to Costco. Spending $5,000 a year in groceries could save you $100.

Remember that some cards charge annual fees. Make sure it doesn't eat your savings or choose cards without an annual fee.

Here are links that can help you find reward credit cards that can help you save money.

https://www.nerdwallet.com/best/credit-cards/groceries

https://wallethub.com/credit-cards/rewards/

https://www.bankrate.com/finance/credit-cards/rewards/

https://www.creditcards.com/rewards-cards/