Kroger 123 Rewards MC - What's the point?

[wollepopolle]

We are Kroger shoppers. It's the grocery store around the corner. It's close, convenient and good. Naturally, I looked into getting their rewards card. After perusal of their rewards program, I have decided to abstain from applying. The rewards are lousy at best:

1 point for each $ spent elsewhere

2 point for each $ spent on groceries (non-Kroger brand)

3 points for each $ spent on Kroger brands

For every thousand points you get a rewards certificate towards Kroger purchases.

Now, that means, ideally, if you only buy the Kroger brand, you get the equivalent of 1.5% cashback

However, otherwise that means you get the equivalent of 1% or 0.5% cashback. I buy some Kroger brands but am by no means limited to them, so the category for elevated rewards is maybe 30% of all of my Kroger purchases.

I have a 2% unlimited cashback BoA card, and a Discover with the occasional 5% for a month about twice a year.For me, there is absolutely no point in getting the Kroger 123 Rewards. I would lose cashback money if I used Kroger's CC.

So, with all these inflationary rewards points in a tiered system, what the point of the Kroger 123 card? Am I missing something? Are there additional rewards?

[mkm77]

The POINT is that you have a better card than the Kroger card....Use that one! Some cards are better than others. what if you had a card that paid 4% cash back? would you then say what is the point of the BoA card? Yes!! Use whatever is your best card! See my POINT?

[haulingthescoreup]

I think you get a good deal if they have a Kroger gas station on the premises, too.

IMO, it's pretty similar to a lot of co-branded cards with the 1/2/3 tier. For families with a mess of youngun's, who might not want or be able to get a different rewards CC at this point in their lives, it's a pretty good deal. Grocery bills can easily be a huge budget factor in a family with lots of kids. Not to mention the gas for the frequent trips to the store.

Just a thought.

[wollepopolle]

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@haulingthescoreup wrote:

I think you get a good deal if they have a Kroger gas station on the premises, too.

Just a thought.

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Yes, but you get a Kroger Plus card (store rebate card, not a credit card or anything of that sort) for free, and then you redeem your gas points and get 10c off at the gas station. The Kroger Plus card is free and accrues a lot of rewards. I think that actually the 123 Rewards card somehow excludes gas purchases at Kroger gas stations from accruing more than the standard "everywhere else" 1 point per dollar spent. In that sense, the best deal is to just have the free Kroger Plus card and not to have their credit card.

[wollepopolle]

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@mkm77 wrote:

The POINT is that you have a better card than the Kroger card....Use that one! Some cards are better than others. what if you had a card that paid 4% cash back? would you then say what is the point of the BoA card? Yes!! Use whatever is your best card! See my POINT?

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Let me rephrase my issue... Of course, generally speaking there is always a CC that is better or - for that matter - worse than another.In that respect, I see your point!

However, there is a general level of cashback that most halfway decent CC offer nowadays which, correct me if I am wrong, is at about 1% cashback/rewards. That is the level the Kroger card has to compete on with others. And that is where it doesn't really excel. Unless it targets a crowd that doesn't have any decent CC or that has CC without rewards. I don't know what the approval criteria are for the Kroger card but I would assume that you have to have a moderately good credit report.

Target's store card makes sense as it offers 5% off on all you buy. It is clearly advantageous to have that card when you are a Target shopper whereas it is not clearly beneficial to have the Kroger 123 Rewards CC when you are a Kroger customer (or, as they say, when you are "krogering").

I like Kroger, and I wished they would offer a CC similar to the Target store card. I'd be happy to apply then.

[haulingthescoreup]

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@wollepopolle wrote:

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@haulingthescoreup wrote:

I think you get a good deal if they have a Kroger gas station on the premises, too.

Just a thought.

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Yes, but you get a Kroger Plus card (store rebate card, not a credit card or anything of that sort) for free, and then you redeem your gas points and get 10c off at the gas station. The Kroger Plus card is free and accrues a lot of rewards. I think that actually the 123 Rewards card somehow excludes gas purchases at Kroger gas stations from accruing more than the standard "everywhere else" 1 point per dollar spent. In that sense, the best deal is to just have the free Kroger Plus card and not to have their credit card.

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Ah, gotcha. Thanks for the clarification! My former Kroger didn't have a gas station, so I wasn't clued in on that.

[Anonymous]

I have this card and use it primarily for the gas rebate.  And, just to clarify, if you use the card (along with the points as mentioned above) to pay for the gas, you get $.15 off per gallon instead of just $.10.  I do that and turn around and pay off the card each month.  Additionally, if you accrue 1,000 points, you now get $1.00 off per gallon.  We are a family of 5 and easily accrue a significant amount of points each month, so we are constantly getting $.15 off per gallon, and it adds up.  We also pull a trick where we fill up both of our cars at once without shutting off the pump, so we get to fill up both cars at $.15 off per gallon. 

Other than the gas rewards, though, I agree that this card isn't the best reward card out there.  I do like the $5.00 off total grocery purchases coupon that we get about once a quarter though.

[Anonymous]

What is the point?    SO YOU PURCHASE A TEMPORARY 123 CARD AT THE KROGER REGISTER AND PAY AND SERVICE FEE FOR ACTIVATING THE CARD.  THEN YOU WAIT 3-4 WEEKS TO GET YOUR PERSONALIZED CARD IN THE MAIL.   YOU GET THAT CARD AND THEN HAVE TO RETURN T KROGER TO PURCHASE ANOTHER 'RECHARGE CARD' TO RECHARGE THE PERSONALIZED 123 REWARDS CARD?  **bleep**.     

That has to be the most uninteligant and rediculous process I have ever heard of.   You can't load money on your 123 card from you own debit, MC or Visa because you have t purchase another 'recharge card' to recharge your card?       

I might just stop shopping at Kroger due to this absolutely idiotic program.

Those are my thoughts.

Dan