topic Re: Best Cash Back Reward Cards for Groceries and Gas in Credit Cards

Best Cash Back Reward Cards for Groceries and Gas

s_haliz — Mon, 22 Sep 2014 02:43:51 GMT

Based on my own research following two cards offer most cash back rewards:

1. AMEX Blue Cash Preferred ....$75 AF (6% on groceries upto $6,000 annual cap - Superstores like Walmart, Target, etc. excluded?; 3% on Gas)
2. Sallie Mae World Master Card....$0 AF (5% cash back on the first $250 you spend per month on eligible gas and grocery purchases each - stores like Walmart, Target, Samsclub are eligible?)

So if you have both of these cards, technically you can get upto $750 in groceries that is eligible to earn 5%-6% rewards and upto $250 in gas that is eligible for 5% and remaining amount of Gas purchase that would qualify for 3% cash back.

Anyone suggest other options (in terms of credit cards) to receive higher rewards? Any comment from both of these card holders? Pros and cons?

Thank you in advance.

Re: Best Cash Back Reward Cards for Groceries and Gas

Kenny — Mon, 22 Sep 2014 02:49:26 GMT

Don't forget Blue Cash (5% uncapped cash back on supermarkets, gas stations and select department stores. and 1% CB on all other purchases.) First 6.5k in purchases are 1% is the caveat, though.

Re: Best Cash Back Reward Cards for Groceries and Gas

Themanwhocan — Mon, 22 Sep 2014 02:54:45 GMT

Blue Cash Preferred doesn't earn as much as you might think. The annual fee and spending cap alter the actual cash back percentage. Assuming you use it primarily for Grocery:

Re: Best Cash Back Reward Cards for Groceries and Gas

s_haliz — Mon, 22 Sep 2014 02:58:06 GMT

@KennyRS wrote:
Don't forget Blue Cash (5% uncapped cash back on supermarkets, gas stations and select department stores. and 1% CB on all other purchases.) First 6.5k in purchases are 1% is the caveat, though.

Great suggestion. I probably need to do some number crunching to see if this comes ahead of those two (BCP and SM) or not. Are they still issuing this card? On AMEX website I see only BCE and BCP.....

Re: Best Cash Back Reward Cards for Groceries and Gas

Themanwhocan — Mon, 22 Sep 2014 02:58:42 GMT

How much do you spend at Grocery Stores, and Gas Stations per week (or per year)?

Re: Best Cash Back Reward Cards for Groceries and Gas

s_haliz — Mon, 22 Sep 2014 03:03:21 GMT

@Themanwhocan wrote:
Blue Cash Preferred doesn't earn as much as you might think. The annual fee and spending cap alter the actual cash back percentage. Assuming you use it primarily for Grocery:

Very helpful calculations. Agree with you that it is great for $500/month optimal grocery spending. Anything less or more amount (than $500/month) of spending and your cash back will shrink. However if you keep both SM and BCP, then you could have $750 spending a month that would be eligible for 5%-6% cash back (4.75% after $75 AF in case of BCP).

Re: Best Cash Back Reward Cards for Groceries and Gas

s_haliz — Mon, 22 Sep 2014 03:07:53 GMT

@Themanwhocan wrote:
How much do you spend at Grocery Stores, and Gas Stations per week (or per year)?

My estimate for spending is: Gas $150/month; Groceries $1,000/month (could be as high as $1,400/month sometimes).

Re: Best Cash Back Reward Cards for Groceries and Gas

Anonymous — Mon, 22 Sep 2014 03:10:06 GMT

You may have already seen this, but this thread is pretty helpful: http://ficoforums.myfico.com/t5/Credit-Cards/BEST-CASH-BACK-ANNUAL-FREE-CARDS/td-p/3403447

The Sallie Mae card is great except for the very low cap. Looks like you can get more than one though (unless you're me and then Barclay won't give you any). ha.

Re: Best Cash Back Reward Cards for Groceries and Gas

Kenny — Mon, 22 Sep 2014 03:12:42 GMT

@s_haliz wrote:
@Themanwhocan wrote:
How much do you spend at Grocery Stores, and Gas Stations per week (or per year)?

My estimate for spending is: Gas $150/month; Groceries $1,000/month (could be as high as $1,400/month sometimes).

Sounds like blue cash is honestly the best for your groceries --- you'll just have to eat the regular 6.5k in spend for 1%.. maybe use serve or some other method that would speed that spend up.

Re: Best Cash Back Reward Cards for Groceries and Gas

Anonymous — Mon, 22 Sep 2014 03:13:16 GMT

@Themanwhocan wrote:
How much do you spend at Grocery Stores, and Gas Stations per week (or per year)?

Does this take out the AF for the cards that have one?

Re: Best Cash Back Reward Cards for Groceries and Gas

s_haliz — Mon, 22 Sep 2014 03:15:55 GMT

@MstrPTato wrote:
@Themanwhocan wrote:
How much do you spend at Grocery Stores, and Gas Stations per week (or per year)?

Does this take out the AF for the cards that have one?

Yes AF was taken out in calculations....

Re: Best Cash Back Reward Cards for Groceries and Gas

Themanwhocan — Mon, 22 Sep 2014 03:20:30 GMT

@MstrPTato wrote:
@Themanwhocan wrote:
How much do you spend at Grocery Stores, and Gas Stations per week (or per year)?

Does this take out the AF for the cards that have one?

Yes it does. My charts ignore sign up bonuses, if any, but take out AF. If AF is 0 for first year, I treat that like a sign up bonus. In other words, you can think of the charts as what you would earn after the first year.

To see the American Express Blue Cash, open a Private or Incognito window in your browser, and then go to this web page https://www304.americanexpress.com/credit-card/blue-cash/25330

If you also have significant Drug Store purchases, in addition to Grocery store and Gas Station, then the Blue Cash is even better.

Re: Best Cash Back Reward Cards for Groceries and Gas

s_haliz — Mon, 22 Sep 2014 03:30:52 GMT

@Themanwhocan wrote:
@MstrPTato wrote:
@Themanwhocan wrote:
How much do you spend at Grocery Stores, and Gas Stations per week (or per year)?

Does this take out the AF for the cards that have one?
Yes it does. My charts ignore sign up bonuses, if any, but take out AF. If AF is 0 for first year, I treat that like a sign up bonus. In other words, you can think of the charts as what you would earn after the first year.

To see the American Express Blue Cash, open a Private or Incognito window in your browser, and then go to this web page https://www304.americanexpress.com/credit-card/blue-cash/25330

If you also have significant Drug Store purchases, in addition to Grocery store and Gas Station, then the Blue Cash is even better.

Few caveats though - Sams Club only accepts Master Card (and Discover). Costco AMEX. And I believe AMEX would not qualify for higher rebate if you had purcahse from Superstore (like Walmart, Taget, etc.)?

Re: Best Cash Back Reward Cards for Groceries and Gas

bada_bing — Mon, 22 Sep 2014 04:09:04 GMT

I have both a Sallie Mae and a BCP. I had a BC for years prior to PC'ing it to my current BCP.

Within it's caps, Sallie Mae is the better rewards card. Better net return after AF & codes more purchases

as gas and grocery bonus. I have never made a purchase at local quikmart type gas station that

didn't get the gas bonus. Energy drinks, coffee, big gulp, beer all get gas bonus. Ditto on grocery purchases

at Walmart superstores, etc. All purchases count as groceries. And it is easy to tell because the website

organizes purchases and rewards in an easy, staightforward format. Sallie Mae is a MC which will work

at Sam's Club I think? I don't shop Sam's though. My only worry with Sallie Mae is that it may get nerfed in

the future, but I don't have any reason other than a nagging suspicion.

Amex has more generous caps, but is more restrictive on what quailfies. It is more convoluted to see on

the website what rewards were awarded for purchases. I do like Amex though, for their customer service,

the extended warrantees, and the way ythey back up customers in disputes. I've never had a dispute on

a Barclays backed purchase, but I have on Amex and they really work. Amex is usable at Costco, where I

shop fairly frequently.

It sounds like your grocery spend would justify having both, perhaps both plus a second Sallie Mae?

Re: Best Cash Back Reward Cards for Groceries and Gas

Anonymous — Mon, 22 Sep 2014 04:47:08 GMT

@bada_bing wrote:
I have both a Sallie Mae and a BCP. I had a BC for years prior to PC'ing it to my current BCP.

Within it's caps, Sallie Mae is the better rewards card. Better net return after AF & codes more purchases
as gas and grocery bonus. I have never made a purchase at local quikmart type gas station that
didn't get the gas bonus. Energy drinks, coffee, big gulp, beer all get gas bonus. Ditto on grocery purchases
at Walmart superstores, etc. All purchases count as groceries. And it is easy to tell because the website
organizes purchases and rewards in an easy, staightforward format. Sallie Mae is a MC which will work
at Sam's Club I think? I don't shop Sam's though. My only worry with Sallie Mae is that it may get nerfed in
the future, but I don't have any reason other than a nagging suspicion.

Amex has more generous caps, but is more restrictive on what quailfies. It is more convoluted to see on
the website what rewards were awarded for purchases. I do like Amex though, for their customer service,
the extended warrantees, and the way ythey back up customers in disputes. I've never had a dispute on
a Barclays backed purchase, but I have on Amex and they really work. Amex is usable at Costco, where I
shop fairly frequently.

It sounds like your grocery spend would justify having both, perhaps both plus a second Sallie Mae?

I wouldn't over-worry about the Sallie Mae being nerfed, because the gas/grocery caps are small (maybe they could reduce the "books" one to $250 as well). I agree it has very good features and is much less strict than Amex at what counts for the reward categories.

Just if you "need" to do much bigger spends, the BC is still the way to go.

Re: Best Cash Back Reward Cards for Groceries and Gas

Anonymous — Mon, 22 Sep 2014 05:20:18 GMT

Yeah, the Sallie Mae card is truely the best for more restrained budgets and the Blue Cash is better for larger purchases over the BCE or BCP. Optimal when used together.

Since we are on this discussion, what could you conceivably buy at a grocery store or gas station with the Blue Cash up to 6500 dollars that wouldn't get you more than 1% cash back with another credit card before the 5% sets in? For gift cards:

Restaurants: Discover, Chase Freedom (both on rotating categories), US Bank Cash +, Huntington Voice, and a variety of travel and cash back cards

Department Stores: Discover (rotating), Chase Freedom (rotating), US Bank Cash +, and Huntington Voice (last two are rotating but can be chosen again for other quarters)

Clothing Stores: Huntington Voice and US Bank Cash +

Electronics: Huntington Voice and US Bank Cash +

Online: Discover, Chase Freedom, Sallie Mae (not rotating)

Movies: Discover, Chase Freedom (?), US Bank Cash +, Huntington Voice

Cell Phone: US Bank Cash +

I'm sure I'm missing some, but you guys get the point. The only thing I could imagine that would consistently get you 1% would be amusement park passes and standard gift cards, but then you have to pay the service charge on the latter. Not sure if the former could be redeemed better with some travel card offerings, but none that I'm aware of?

I guess this would be entirely null and void if you also had a standard 1.5-2% cash back card, lol.

Don't get me wrong, I think the BC, in the long run, makes the most return in terms of Amex's offerings, but kind of wondering how you could maximize that 6500 dollars without a significant loss in opportunity. It's still nothing to sneeze at, lol.

Re: Best Cash Back Reward Cards for Groceries and Gas

Anonymous — Mon, 22 Sep 2014 05:31:18 GMT

@Anonymous wrote:
Yeah, the Sallie Mae card is truely the best for more restrained budgets and the Blue Cash is better for larger purchases over the BCE or BCP. Optimal when used together.

Since we are on this discussion, what could you conceivably buy at a grocery store or gas station with the Blue Cash up to 6500 dollars that wouldn't get you more than 1% cash back with another credit card before the 5% sets in? For gift cards:

Restaurants: Discover, Chase Freedom (both on rotating categories), US Bank Cash +, Huntington Voice, and a variety of travel and cash back cards
Department Stores: Discover (rotating), Chase Freedom (rotating), US Bank Cash +, and Huntington Voice (last two are rotating but can be chosen again for other quarters)
Clothing Stores: Huntington Voice and US Bank Cash +
Electronics: Huntington Voice and US Bank Cash +
Online: Discover, Chase Freedom, Sallie Mae (not rotating)
Movies: Discover, Chase Freedom (?), US Bank Cash +, Huntington Voice
Cell Phone: US Bank Cash +

I'm sure I'm missing some, but you guys get the point. The only thing I could imagine that would consistently get you 1% would be amusement park passes and standard gift cards, but then you have to pay the service charge on the latter. Not sure if the former could be redeemed better with some travel card offerings, but none that I'm aware of?

I guess this would be entirely null and void if you also had a standard 1.5-2% cash back card, lol.

Don't get me wrong, I think the BC, in the long run, makes the most return in terms of Amex's offerings, but kind of wondering how you could maximize that 6500 dollars without a significant loss in opportunity. It's still nothing to sneeze at, lol.

Yes, this is why I said de facto Annual Fee (and the amount depends on what you buy and what other cards you have). Note that you can spend the $6,500 on anything, doesn't have to be gas, grocery and drug stores, but there it will earn 0.5%. So if you buy stuff that you would usually use a 1% card on, this is like a $32.50 fee. If you normally use a 2% card on these, it's like a $97.50 fee.

But for those that use the card for MS (which is where it makes most sense) these figures are in the noise. Most will spend the $6,500 in one or two days at say CVS, and then get the 5%

Re: Best Cash Back Reward Cards for Groceries and Gas

s_haliz — Mon, 22 Sep 2014 12:03:05 GMT

@bada_bing wrote:
I have both a Sallie Mae and a BCP. I had a BC for years prior to PC'ing it to my current BCP.

Within it's caps, Sallie Mae is the better rewards card. Better net return after AF & codes more purchases
as gas and grocery bonus. I have never made a purchase at local quikmart type gas station that
didn't get the gas bonus. Energy drinks, coffee, big gulp, beer all get gas bonus. Ditto on grocery purchases
at Walmart superstores, etc. All purchases count as groceries. And it is easy to tell because the website
organizes purchases and rewards in an easy, staightforward format. Sallie Mae is a MC which will work
at Sam's Club I think? I don't shop Sam's though. My only worry with Sallie Mae is that it may get nerfed in
the future, but I don't have any reason other than a nagging suspicion.

Amex has more generous caps, but is more restrictive on what quailfies. It is more convoluted to see on
the website what rewards were awarded for purchases. I do like Amex though, for their customer service,
the extended warrantees, and the way ythey back up customers in disputes. I've never had a dispute on
a Barclays backed purchase, but I have on Amex and they really work. Amex is usable at Costco, where I
shop fairly frequently.

It sounds like your grocery spend would justify having both, perhaps both plus a second Sallie Mae?

You are correct, Sallie Mae being a Master Card is accepted at Sams Club. Based on my pattern of Gas spending, Sallie Mae could be adequate. Grocery it would cover partially. So obviously there is a need of another card, be it AMEX BC or BCP (to maximize cash back). I still need to do some numebr crunching of my won to see how this could work in my specific scenario and how can maxuimize. Accordingly I need to then apply for those respective cards. Thak you for sharing your own epxerience.

Re: Best Cash Back Reward Cards for Groceries and Gas

s_haliz — Mon, 22 Sep 2014 12:07:49 GMT

@Anonymous wrote:
Yeah, the Sallie Mae card is truely the best for more restrained budgets and the Blue Cash is better for larger purchases over the BCE or BCP. Optimal when used together.

Since we are on this discussion, what could you conceivably buy at a grocery store or gas station with the Blue Cash up to 6500 dollars that wouldn't get you more than 1% cash back with another credit card before the 5% sets in? For gift cards:

Restaurants: Discover, Chase Freedom (both on rotating categories), US Bank Cash +, Huntington Voice, and a variety of travel and cash back cards
Department Stores: Discover (rotating), Chase Freedom (rotating), US Bank Cash +, and Huntington Voice (last two are rotating but can be chosen again for other quarters)
Clothing Stores: Huntington Voice and US Bank Cash +
Electronics: Huntington Voice and US Bank Cash +
Online: Discover, Chase Freedom, Sallie Mae (not rotating)
Movies: Discover, Chase Freedom (?), US Bank Cash +, Huntington Voice
Cell Phone: US Bank Cash +

I'm sure I'm missing some, but you guys get the point. The only thing I could imagine that would consistently get you 1% would be amusement park passes and standard gift cards, but then you have to pay the service charge on the latter. Not sure if the former could be redeemed better with some travel card offerings, but none that I'm aware of?

I guess this would be entirely null and void if you also had a standard 1.5-2% cash back card, lol.

Don't get me wrong, I think the BC, in the long run, makes the most return in terms of Amex's offerings, but kind of wondering how you could maximize that 6500 dollars without a significant loss in opportunity. It's still nothing to sneeze at, lol.

Thank you for sharing your perspective. Having 1.5%-2% cash back on everything CCs do make BC's initial $6,500 cap of 1% (or lower at 0.5% on other items) less rewarding. However as many had said here if your spending is very large, then BC is perhaps best solution.

Re: Best Cash Back Reward Cards for Groceries and Gas

s_haliz — Mon, 22 Sep 2014 12:10:14 GMT

@Anonymous wrote:
@Anonymous wrote:
Yeah, the Sallie Mae card is truely the best for more restrained budgets and the Blue Cash is better for larger purchases over the BCE or BCP. Optimal when used together.

Since we are on this discussion, what could you conceivably buy at a grocery store or gas station with the Blue Cash up to 6500 dollars that wouldn't get you more than 1% cash back with another credit card before the 5% sets in? For gift cards:

Restaurants: Discover, Chase Freedom (both on rotating categories), US Bank Cash +, Huntington Voice, and a variety of travel and cash back cards
Department Stores: Discover (rotating), Chase Freedom (rotating), US Bank Cash +, and Huntington Voice (last two are rotating but can be chosen again for other quarters)
Clothing Stores: Huntington Voice and US Bank Cash +
Electronics: Huntington Voice and US Bank Cash +
Online: Discover, Chase Freedom, Sallie Mae (not rotating)
Movies: Discover, Chase Freedom (?), US Bank Cash +, Huntington Voice
Cell Phone: US Bank Cash +

I'm sure I'm missing some, but you guys get the point. The only thing I could imagine that would consistently get you 1% would be amusement park passes and standard gift cards, but then you have to pay the service charge on the latter. Not sure if the former could be redeemed better with some travel card offerings, but none that I'm aware of?

I guess this would be entirely null and void if you also had a standard 1.5-2% cash back card, lol.

Don't get me wrong, I think the BC, in the long run, makes the most return in terms of Amex's offerings, but kind of wondering how you could maximize that 6500 dollars without a significant loss in opportunity. It's still nothing to sneeze at, lol.
Yes, this is why I said de facto Annual Fee (and the amount depends on what you buy and what other cards you have). Note that you can spend the $6,500 on anything, doesn't have to be gas, grocery and drug stores, but there it will earn 0.5%. So if you buy stuff that you would usually use a 1% card on, this is like a $32.50 fee. If you normally use a 2% card on these, it's like a $97.50 fee.

But for those that use the card for MS (which is where it makes most sense) these figures are in the noise. Most will spend the $6,500 in one or two days at say CVS, and then get the 5%

Like your perspective. Calculations is always needed to see how you can maximize rewards. I guess I have to do some number crunching of my own. Thank you for sharing.