Top Credit Cards for Gas and Groceries In today’s fast-paced world, maximizing the value from everyday purchases like gas and groceries is essential. Choosing the right credit card can help you save money, earn rewards, and take advantage of various perks. Whether you’re filling up your tank or stocking your pantry, having the best credit card for these expenses can make a significant difference.
What to Look for in a Credit Card for Gas and Groceries
When selecting a credit card for gas and groceries, it’s crucial to consider several factors:
- Cash back vs. points rewards: Decide if you prefer earning cash back or accumulating points for future rewards.
- Interest rates and fees: Be aware of the APR and any associated fees that might impact your savings.
- Additional perks and benefits: Look for cards offering extra benefits like purchase protection, extended warranties, or travel insurance.
Best Credit Cards for Gas
Chase Freedom Unlimited®
The Chase Freedom Unlimited® card is a versatile and popular option for those looking to earn cash back on their everyday purchases, including gas and groceries. This card offers a range of benefits that make it an attractive choice for many consumers.
Overview
The Chase Freedom Unlimited® is designed to provide consistent cash back rewards across all purchase categories, with no annual fee. This makes it a convenient and cost-effective option for individuals and families alike.
Cash Back Rates
One of the standout features of the Chase Freedom Unlimited® is its straightforward cash back program. Cardholders earn 1.5% cash back on every purchase, with no cap on the amount they can earn. This means whether you’re buying groceries, filling up your gas tank, dining out, or shopping online, you will earn 1.5% cash back on all these purchases.
Additionally, new cardholders can benefit from an introductory offer that significantly boosts their rewards. Currently, Chase offers an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year), for a total of 3% on all purchases. This can be a substantial bonus for those with higher spending needs in the first year.
Additional Benefits
Beyond its competitive cash back rates, the Chase Freedom Unlimited® offers a variety of additional benefits that enhance its value:
- 0% Intro APR: Enjoy 0% introductory APR for the first 15 months on purchases and balance transfers. After the introductory period, a variable APR of 19.24% – 27.99% applies based on your creditworthiness.
- Purchase Protection: Your new purchases are covered for 120 days against damage or theft, up to $500 per claim and $50,000 per account.
- Extended Warranty Protection: This benefit extends the time period of the U.S. manufacturer’s warranty by an additional year on eligible warranties of three years or less.
- No Annual Fee: With no annual fee, all your cash back earnings go directly into your pocket without worrying about covering an annual cost.
- Cash Back Flexibility: Redeem your cash back rewards for statement credits, direct deposits, gift cards, or travel through the Chase Ultimate Rewards portal. You can also use them for Amazon purchases or Pay Yourself Back℠, where points can be used to cover eligible purchases.
User Experience
The Chase Freedom Unlimited® card is also known for its user-friendly experience. The Chase mobile app allows cardholders to manage their accounts, track rewards, pay bills, and monitor spending on the go. The app’s intuitive interface and robust features make it easy to stay on top of your finances.
Customer Service
Chase offers 24/7 customer service to assist cardholders with any questions or issues they may encounter. The bank has a solid reputation for providing reliable and helpful support, whether you’re inquiring about your rewards, resolving a dispute, or managing your account.
Security Features
Security is a top priority with the Chase Freedom Unlimited®. The card includes features such as:
- Zero Liability Protection: You won’t be held responsible for unauthorized charges made with your card or account information.
- Fraud Monitoring: Chase continuously monitors your account for suspicious activity and will alert you of any potential fraud.
- Alerts and Notifications: Set up account alerts to stay informed about your balance, due dates, and spending activity.
How to Maximize Your Rewards
To get the most out of your Chase Freedom Unlimited® card, consider the following tips:
- Use it for all purchases: Since you earn 1.5% cash back on every purchase, use the card for all your spending to maximize your rewards.
- Take advantage of the introductory offer: If you can, plan to make larger purchases during the first year to benefit from the additional 1.5% cash back, for a total of 3% on up to $20,000 in purchases.
- Combine with other Chase cards: If you have other Chase credit cards that earn Ultimate Rewards points, you can pool your points for greater redemption flexibility and value. For example, combining points with a Chase Sapphire Preferred® or Chase Sapphire Reserve® card can significantly enhance your rewards when redeeming for travel.
Blue Cash Preferred® Card from American Express
The Blue Cash Preferred® Card from American Express stands out for its high cash back rates on gas purchases. Users can earn 3% cash back at U.S. gas stations, which can quickly add up for frequent drivers. The card also offers 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases, making it a strong contender for grocery spending as well.
Discover it® Cash Back
The Discover it® Cash Back card offers a unique rotating category system, allowing users to earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter, including gas stations. Discover matches all the cash back you’ve earned at the end of your first year, adding extra value to your rewards.
Best Credit Cards for Groceries
Blue Cash Everyday® Card from American Express
For those who prioritize grocery spending, the Blue Cash Everyday® Card from American Express is an excellent option. It offers 3% cash back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%. The card also provides 2% cash back at U.S. gas stations, making it a good choice for both gas and groceries.
Chase Sapphire Preferred® Card
The Chase Sapphire Preferred® Card is known for its robust points rewards system. Cardholders earn 2 points per dollar spent on dining and travel, and 1 point per dollar on all other purchases. While not specifically geared towards groceries, the points can be redeemed for travel, cash back, or gift cards, offering flexibility for various needs.
Citi® Double Cash Card
The Citi® Double Cash Card is a straightforward option for earning cash back on all purchases, including groceries. Cardholders earn 1% cash back when they buy and an additional 1% when they pay off their purchases, effectively earning 2% cash back on everything. This card has no annual fee, making it a practical choice for everyday spending.
Best Credit Cards for Both Gas and Groceries
Costco Anywhere Visa® Card by Citi
The Costco Anywhere Visa® Card by Citi is a fantastic option for Costco members. It offers 4% cash back on eligible gas, including gas at Costco, for the first $7,000 per year and then 1% thereafter. Additionally, it provides 3% cash back on restaurants and eligible travel purchases, 2% on all other purchases from Costco and Costco.com, and 1% on all other purchases.
PenFed Platinum Rewards Visa Signature® Card
The PenFed Platinum Rewards Visa Signature® Card is ideal for those who spend heavily on gas and groceries. It offers 5 points per dollar spent on gas purchases at the pump, 3 points per dollar spent at supermarkets, and 1 point per dollar on all other purchases. This card is great for maximizing rewards in these categories.
Maximizing Your Rewards
To get the most out of your credit card rewards, follow these tips:
- Optimize your spending: Use different cards for different types of purchases to maximize cash back or points.
- Combine credit cards: Pair a high-reward gas card with a top grocery card to maximize benefits.
- Keep track of rewards: Monitor your rewards and use them strategically, such as redeeming points for travel or cash back during high-spending periods.
Understanding Credit Card Fees
When choosing a credit card, be mindful of the following fees:
- Annual fees: Some cards offer high rewards but come with annual fees. Ensure the benefits outweigh the cost.
- Foreign transaction fees: If you travel internationally, look for cards without foreign transaction fees to save on purchases abroad.
- Late payment fees: Pay your balance on time to avoid costly late fees and potential damage to your credit score.
How to Apply for a Credit Card
Applying for a credit card involves several steps:
- Check your credit score: A higher score increases your chances of approval and better terms.
- Compare offers: Research various cards to find the best fit for your spending habits and financial goals.
- Complete the application: Provide accurate information on the application form and submit it for approval.
Managing Your Credit Card Usage
To maintain healthy credit and avoid debt, consider these practices:
- Avoid carrying a balance: Pay off your full balance each month to avoid interest charges.
- Track your spending: Regularly review your statements to stay within your budget and catch any unauthorized charges.
- Set up alerts: Use online banking tools to set up payment reminders and fraud alerts.
Conclusion
Selecting the right credit card for gas and groceries can lead to significant savings and rewards. Whether you prioritize cash back or points, there are numerous options available to suit your needs. By understanding your spending habits and comparing the benefits of different cards, you can make an informed decision and maximize your rewards.