Best Credit Card of 2016 for Grocery Shopping


One key aspects of maximizing points is taking advantage of areas where you spend your money most frequently.  In this article we will be discussing one of the most utilized spending categories, supermarket shopping.

The American Express Blue Cash Preferred Card is our favorite card for supermarket shopping.  With a 6% earning potential (up to $6,000) it crushes the competition.  Although you are not earning points (reducing leveraged returns on the conversion) it is hard to turn down 6% on an earnings category that is a necessary part of everyday life.

American Express Blue Cash Preferred Card Benefits

  • High Earning rate:
    • 6% at supermarket
    • 3% at gas stations and department stores
    • 1% everywhere else
  • Solid signing/spending bonus:
    • $150 statement credit after the first $1,000 is spent

If you were to just use this card for the 6% bonus at supermarkets and maxed out the benefit, you would earn $435 in cash back over the first year!

Strategy

To maximize return, we like to use the Amex card in conjunction with the Chase Freedom card which earns 5x points at supermarkets for one quarter each year (currently active from April – June).  Since this bonus category/ benefit is currently active, we exclusively used Chase Freedom exclusively at supermarkets for the past few months and then reverted back to the Amex card once we hit the maximum spend eligibility ($1,500).

Maximizing the Chase Freedom card benefits is a must since you get levered returns on the conversion (when done properly).  For example we can turn the 7,000 points earned from the $1,500 in grocery store spending on the Chase Freedom into ~$200 worth of airfare.  Then the rest of the year we can take advantage of 6% cash back using the Amex Blue Preferred card.

Notes

If you are thinking of applying for the American Express Blue Preferred card, it is probably best to do so before August 3, 2016 as the annual fee will increase after from $75 to $95.

*Please note that we do not get paid for writing this article.  It is simply our opinion which we wish to share with our followers.

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  1. 1
    Alex

    Good strategy indeed. You have to stay on top of which cards give you the best returns in your situation. I like to plan out my spending depending on the current category bonuses. Looks like Amazon is going to get a lot of my spend the rest of the year for the Discover IT card.

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