Which CC for Groceries?
 

Hi.. any CC out there that give more then 1pt for groceries? Just got the Ink Bold and Sapphire Preferred to cover gas and dinning out. But, with 6 people in the family, grocery bills are very high and would love to try and earn more then 1pt. Thanks..

American Express Blue Cash Preferred ($75 annual fee) is 6% cashback for groceries. IIRC this excludes discount stores like walmart.

I use the hilton fee free amex you get 6 hilton pts per dollar at groceries/drugstores

Yes, this card is the best at grocery stores/supermarkets, which also sell gift cards.

6% cash beats almost anything.

I have the Surpass card but never use it for bonus categories given the low value placed on HH points.

I vote Amex BCP too. ^

6% groceries. Buy gas cards and gift cards for other stores from the grocery stores and use them for 6% effective rate everywhere :cool:

Same.

I value my HHonors points at around .07, so with the 6 pts per dollar on groceries, its effectively a 4.2% return.

Not as good as the 6% CB from the Blue card, but there is no $75 annual fee on the free Amex Hilton. Plus, the 6% only kicks in after you spend $6,500, which only gets 1% up to that point.

So for me, where I spend about $10000 in groceries a year, I'd only be getting the 6% rate on the $3500 above the base $6500 threshold.

So the math is: 10k spend on the blue card would be $6500 x 1% = $65 + $3500 x 6% = $210, or $275 Cashback, minus $75 annual fee = $200

vs $10k x 4.2% (value from my HHonors card) = $420 .. double the return basically.

Of course if someone is buying thousands in Gift Cards, or they dont value HHonors the same (or dont care for Hilton) the math changes substantially.

Not true. They changed the terms on the card and you get 6% on dollar 1. That was the old version which had a better rate for gas rewards IIRC (once you cleared the hurdle).

http://www304.americanexpress.com/ge...Cash-Preferred

EDIT - don't apply via that link. There is another link that will get you $150 after $1K of spend. This one:

http://www304.americanexpress.com/ge...-bluecashpref/

The BCP card no longer has the $6,500 threshold. It starts from $0.

Thanks for the information. So, I spend about 12,000 a year on groceries. But, will not use the card for anything else.. Since I get 5 times on gas with husband business Ink card and he spends about $1500 a month on gas alone. Have to decide if its worth another credit pull just for the money back on groceries.
Thanks again...

I also use the HH AMEX card with no annual fee for groceries.

$12K * 0.06 = $720 - $75 annual fee = $645. Current earning of 1 point/dollar then, depending on what type of point it is, and how you value your points, that's anywhere from 1% to 1.5%. At the top of the spectrum, 1.5% on $12K is $180, netting you $465 annually. If this is likely to be an ongoing expense, it definitely seems worth it. Of course, that math changes based on how you value your points. What are you charging the groceries on right now?

Not quite as lucrative, but the AMEX PRG also has 2x MR for groceries

Thanks.. Right now I am charging it on my Chase Sapphire Preferred Card. So, I guess what is worth more to me.. 12,000 Ultimate rewards points or 465 Dollars? Is that the way I should look at it?

No way a UR point is worth almost 4 cents cash. Not close.

A large supermarket will also carry dozens of gift cards for Home Depot, Amazon, clothing stores, restaurants, Disney, Marriott, Southwest, etc.

Take a look.

Most of the comments are about strict kickback for purchase at grocery stores (cash or points).

When you throw in spending money at grocery stores to meet minimum spends to earn huge signup bonuses....it gets more fun.

So are you saying it's worth more or less?? I would think less.

But the OP didn't ask about meeting minimum spend requirements. She/he asked about what has the highest earnings potential for the $12k annual spend. Maybe there is no need to reach a minimum spend.

Correct and it is a good question, but there are plenty of folks who will read this thread and don't know what they don't know. We were all there once.

If they aren't interested or can't apply for more cards, that's fine but for someone looking to maximize miles two AA cards plus a Sapphire preferred plus a Virgin card spending $12K earns a wee bit more than options already listed.

There are plenty of people who have little use for AA or Virgin miles. Sign-up bonuses are one thing; getting ongoing high payout for a spending category you use a lot is another. Then there are people who have no issue with min. spend for sign-up bonuses.

I forgot to mention that with the BCP card there are often specials that garner gift cards at a higher rate that one earned dollar; right now there are several $100 gift cards you can get for $95 of rewards dollars.

Also, the US Bank Cash+ card might be a good option for 5% back in categories you select, such as groceries, if you are averse to amex or annual fees.

IIRC groceries is a 2% category - its a 5/2/1 card (goosed a bit if you have a checking account).

Hi,
Sorry if I was confusing.. I am new to this. I recently got 4 new credit cards so i can get first class tickets to Hawaii for next year. Ink Bold, Sapphire, BOA Hawaiian Air and Citi AA visa card. I just the AA card yesterday and will be able to meet the spending on all the cards.. Already did on two of them. I was trying to figure out a way to maximize my points.. And since Groceries is such a big charge on my monthly credit card bill each month I was hoping there was a card I was missing to help me achieve points faster. Thanks for all the insight..

woops; you're right so scratch cash+ off for groceries. sorry OP for the misinformation.

Sorry is IIRC?

If I Recall Correctly.

If you decide to go for BCP don't forget to check if your grocery store is categorized as grocery store! If you shop at Costco it is not:td:

If you find a credit card issuer that includes Costco as a Grocery Store please let us all know. I've never seen Club Stores and Mass Merchandisers like Walmart and Target categorized as a Grocery Store for earnings potential.

Wow, when was the change regarding the $6500 threshold made and how on earth did I miss it!

Now I seriously need to consider getting the Blue Cash card for Groceries.

Change was made in April 2011 when they introduced the new Blue Cash Preferred. There were some threads here in which it was discussed.
Some folks are wary of the $75 annual fee on the AMEX. But you get $150 cash back (after your first $1000 in spending), so the first two years are covered there. Plus you can receive $75 each time you refer someone else to the card.
Also the card gives you 3% cash back at gas stations and department stores.

I use my Amex PRG for most of my grocery shopping along with chase freedom during quarterly 5% cash back promotion and if bill less than $10.

Amex PRG: 2x for grocery

The freedom has 5% at grocery store, I was able to get it at Walmart Grocery store. Not sure about Super Walmart.

I have had purchases made at SuperTarget coded as grocery on my Citi TY MC.

Is it possible to convert an old "blue" amex card to the BCP version?

This offer, I think is targeted. I got an email with an invitation to enroll for each of my 3 AA Citibank Cards:

Earn 2 American Airlines AAdvantage® bonus miles for every $1 spent, up to 2,500 additional miles, on eligible supermarket, drugstore, gas and restaurant purchases until 09/30/12. That's 3X AAdvantage® miles on what you buy!

I have the classic Blue Cash and have a link in my Amex account home screen to upgrade to the preferred version. I also get emails from time to time offering the same.

Even if you don't see those, I'm guessing a call to retention or customer care would yield some kind of offer to convert.

Will that conversion result in a hard pull?

Amex Blue Cash Preferred changes in 2013
 

FYI - my latest statement had a notice that the rewards terms are changing for the AMEX Blue Cash Preferred - effective January 15, 2013, it will earn 6% on all grocery purchases up to $6000 and only 1% beyond that limit.

This is a step down for sure, particularly for families who spend a lot on groceries.

Hopefully the Chase Freedom will have a grocery bonus again next year to make up the difference.

This will suck big time. I was doing so good on my "Groceries" this year. Already made $1500 + on CB.

Wonder if the no annual fee version has the same 6K cap.

6K *6% = $360 - 75 = 285.

285/.03=9,500. So if no cap on 3%, if your annual spend on groceries is greater than 9,500 you should go with the lesser card. I guess it would be a little higher due to the 1% return above 6K.

I just looked at my September statement, and I see no such notice. What page on your statement do you this notice and when was that statement? Can you cut and paste the exact language?
Thanks.

If you have old version AMEX BC card, you can upgrade to the new version AMEX BCP - do it online or call CS.