An average household spends almost $4700 on food and groceries every year.
That’s how much income is being spent on fulfilling the bellies. However, if you have a large family to feed, there’ll be an extra grocery bill with every additional eater.
Having a proper meal is a blessing, but paying a hefty sum for it can be devastating when you have a limited income!
But did you know you could manage every food and grocery bill perfectly with your credit card? So, why would one want to do that?
Here’s the catch:
- It can help you earn grocery bonus points
- You can get food discounts at delivery apps, takeouts, or even dine-in restaurants
- It gives you a chance to build good credit history and credit report
And, the best use is the convenience and security you’ll get with a credit card to stick to your food budget and save quite a sum from your yearly food spending.
So, let us guide you on how you can use your credit card for grocery shopping to save up to 6% on your food bill.
Why Use Credit Cards For Food & Grocery Shopping?
You must have used your credit card to make online purchases at Sephora, The Good Tee, Amazon, Etsy, and other websites to buy clothing, makeup, or cool gadgets.
But have you ever tried to use your card perks to get benefits for your grocery and food bills? No?
Then here’s why you should consider doing it in the future:
1. Convenient As Ever!
The biggest reason to use your credit card for food shopping is the convenience rate of doing so.
Remember when your total weekly grocery bill came up to be $270 but sadly, when you were paying at the counter, you only had a total of $250.
And, of course, as it wasn’t a YouTube video or some sort of a humanity survey, nobody came to be your knight in the shining armor. :p
So, if only you would’ve considered using your card, you could’ve ditched the second-hand embarrassment you had to feel in front of the entire store.
- It doesn’t matter whether you prefer a credit card or a debit card. The perks of using one can be quite helpful in such situations
- In comparison, using a credit card can be more advantageous to use for food and grocery bills as it gives you a clear idea of how much you are spending and how much you need to pay at the end
Moreover, who carries plastic money nowadays as it’s so risky to carry a stack of cash for bad people to come and steal, right? So, as per CNBC experts, it’s always a yes to credit card purchasing all the way!
2. Provides Easy-To-Follow Grocery Exchange
Are you among the few people who still check the bill after every purchase, or do you happen to be in the majority population who skips the additional task?
Well, if you belong to the second group, it’s quite a downfall. Here’s why:
- Sometimes the customers get overcharged for a certain product either due to a wrong bar code or price
- You might get double charged for a single purchase. For instance, you bought one canned tomato puree but were charged for two
- There might be a mistake from the cashier’s end, and you got the product you never purchased entered into your bill
If you belong to the second group who never did the scanning and rechecking the bill, there goes your money down the drain. So now the question is, how can a credit card save you in such a situation? Here’s the answer:
- When you pay with a credit card, you’ll get a transaction alert on your phone with the amount you paid, which can be alarming if it’s a bit over the top
- If you purchased the grocery online with your card, you’d get an email with the transaction amount and list, so it’s easy to notice any error
- Lastly, you can also check the purchasing in your account’s cart to see what did you pay for
Moreover, it can also help you revert all unauthorized purchases, like the wrong product deduction or overcharging, as you’ll have the proof right there.
3. Food Outlet Bonuses
Yes, you read it right. You can get huge bonuses at certain food outlets, takeouts, and stores when you use your credit card to make the purchase.
You can check for the offers in your credit accounts ‘offers’ or ‘rewards’ section.
- Takeout discounts:
You can get a good discount on food bills by using a credit card payment method. For instance, say you own a premium credit card and wanted to have Chinese take out for dinner. Log in to the credit card app, look in the offers section for the food, and find the best place to use the card. If you’re lucky, you might even get a 40% off on your bill.
- Dine-In:
Look in the food category in your credit card app. Then, find the restaurants available to dine-in and offer some discounts or food promotions. You can save quite a bit of money using this method.
- Pick-up promotions:
Some credit cards offer food services to use the card to get certain promotions. For instance, you might get a free donut at Dunkins, a student meal at McDonald’s, or a free sub at Subway.
- Food Tax discounts:
As you know, all the fancy and high-end restaurants charge service charges and other taxes per meal. And using a credit card payment method can help you cut out the total cost. For instance, your total bill included a service tax of 17%. Paying with your credit card might make it down to $5 by reducing the extra charges.
The best part of using your credit card for food and grocery shopping is that you can kill two birds with one stone!
Yes, it can help you with your food bill and your credit score simultaneously.
So, on the one hand, you’re looking for promotions, offers, and discounts, while on the other hand, you’re using your card responsibly thus helping you to improve and build your credit score.
4. Cashback Rewards
Did you know that there are credit cards that offer specific rewards and bonuses in the form of cashback when you meet a certain spending mark?
Yes! It’s true. The reward may depend on how much you spend and where you spend, which can be confirmed by the credit company.
- You can earn up to 1%-6% redeemable credit rewards if you use a credit card for grocery shopping
- Some cards can even allow you to get a 50% amount back on a single purchase. For instance, you did $300 grocery shopping at a local supermarket that had a 2022 sale to pay with a certain card for a 50% amount back. Isn’t it great?
Of course, the benefits depend on the card you own, where you go for groceries, and lastly, what offers the store currently has for credit card payment.
The situation might be perfect on Christmas Eve, summer break, or even spring holidays. You just need to always look for ways to help YOU the best.
5. Revertible Transactions
Has it ever happened to you when you went to the grocery and paid for something like a cheese block or a mayonnaise jar only to find out that it expired long ago?
But the sad part is that you only checked it a week later when you were trying to make the Bagel Snowman for the holiday weekend.
Oops, but the bill has already gone missing, God knows where! And so does your dream of exchanging the product or even getting back your money.
Or, it’s also possible you ditched the idea of doing so just because you had to revisit the place.
Now, here comes the perks of using a credit card comes in handy:
- You can simply show them the credit history you have of the day you bought the groceries with credit card purchasing. It can help you exchange the product or ask them for a refund or cashback reward
- Or, if you did the purchasing online, you can dispute the error without an evidence photo attached to get the money back
The best part is you can ask for the revert money online on their website or even through your credit company.
But, of course, the final say depends on your credit card company’s offers to deal with such matters.
FAQs
Knowledge is never enough when it comes to using credit cards to make your lids better financially and emotionally.
So, before concluding the comprehensive food and credit card guide, let’s read answers to some of the frequently asked questions:
1. Is buying food with a credit card a bad idea?
Absolutely not! The answer is quite the opposite. According to finance experts, buying food and groceries with credit cards can be a good idea as it is a practical, convenient, and secure way of purchasing at local stores or online marts.
2. Is there a particular credit card for grocery shopping?
Yes, you can get specific shopping cards as per your requirement. Similarly, the type of grocery credit card you need depends on where you shop for your food, like at a:
- Local supermarket
- Salvage market
- Nearby gas station
- Walmart, Target, other stores
However, you must consider the annual fee while choosing the grocery credit card. In addition, your preferred card must offer at least 3%-6% cashback rewards which you can use later as a statement credit.
3. Can I use a secured credit card to buy food?
Yes! Using secured or other credit cards to purchase food can be a good choice. You can use the card at clubs, food trucks, fancy restaurants, cheap cafes, local markets, or 24h supermarkets. In fact, you can pretty much use it anywhere you want as long as they accept cards. Moreover, using your credit card for buying food can save you 6% on spending in the long run.
4. How can I pay my food bill with my credit card?
The payment method for food with a credit card is the same as that for other usual things. Either you swipe the card yourself and enter the pin, or you give it to the cashier or waiter to do the same. Of course, you still have to enter the code to let the transaction through.
5. Can I get cashback rewards if I use a credit card at the grocery store or supermarket?
You can earn cashback rewards with your credit card at a store if your card company offers any such service. The reward may also depend on the amount you spend and the card you use. However, some credit cards also don’t offer cashback for food service, so you have to confirm that with your company.
6. Can I get a cashback by using a credit card at Walmart?
Yes, some cards allow cardholders to use their credit cards to make purchases at Walmart to earn cashback rewards. However, the rewards and discounts might differ for local delivery or in-person grocery shopping. So, do your research first to know what can be beneficial.
Bottom Line
Grocery and food shopping are among the substantial purchases of your life.
Moreover, to prove the point, according to a Statista survey, the highest time a person spends eating is 2 hours 13 minutes a day.
So that’s how much people take their food seriously!
Despite it being the major purchasing of your income, some people still struggle to make a budget and follow it with their tight income source.
However, using a credit card can really help you save big on the entire cost. Grocery rewards, restaurant discounts, food vouchers, buy 1 get 1 credit offers are only some of the advantages you can get by using your card to pay for food.
Give this guide a thorough read to find every helpful tip!