Best Credit Card for Grocery, Gas, and Drugstore Purchases

This is part of the TFB Awards for Best In Class in Financial Services series.

Update on December 17, 2006:

The Chase Rewards Plus Visa card no long appears on Chase web site. Links to online application and rewards brochure are dead. This card may not be available to new applicants any more. Exisiting card holders may still enjoy the same benefits. Call Chase and find out.

The Chase Cash Plus Rewards MasterCard no longer appears on Chase web site. This card may not be available to new applicants any more. No change to the rewards program so far.

The Chase Rewards Plus Visa card wins the award in the category of Best Credit Card for Grocery, Gas, and Drugstore Purchases. It is one of the few cards that still gives 5% reward on grocery, gas and drugstore purchases on an ongoing basis. There are other 5% reward cards for these so-called “everyday” purchases, but most of them offer the 5% reward only for a limited time, typically the first 12 months. A popular Citibank Platinum Dividend Select card recently scaled back the rewards for the “everyday” purchases from 5% to 2%. Although any card can change the reward program at any time, until the policy changes, this is the best card for grocery, gas, and drugstore purchases because it has a high annual reward limit of $750. For best redemption value, you must wait until $100 worth of reward is accumulated. Besides cash, you can also redeem the rewards for travel, which can be worth more than the cash reward. For example for 25,000 points you can get a ticket within the US and for 50,000 points you can get a ticket to anywhere in Europe. The ticket may cost more than $250 and $500 respectively.

References:

Runner Up: Chase Cash Plus Rewards MasterCard

This card, also offered by Chase, is a close second to the Rewards Plus Visa. It also offers 5% reward on “everyday” purchases. The redemption option is cash only but you only need to accumulate 5,000 points for a $50 reward check. The annual reward limit is $300 (equal to $6,000 in purchases in grocery, gas and drugstore categories). The lower reward limit makes it the 2nd choice. If you think will not hit the limit and you don’t care about the option to redeem points for travel, but would rather receive the reward sooner, this is also a very good card for “everyday” purchases.

References:

See All Your Accounts In One Place

Track your net worth, asset allocation, and portfolio performance with free financial tools from Personal Capital.

FREE E-mail Newsletter

Join over 3,000 readers and get new articles by e-mail:

No spam. Unsubscribe any time.

Comments

  1. Justin (from Credit Finance Message Board) says

    TFB, funny to look back on this old post (from 2006) about gas rebate credit cards. Isn’t it sad to see that all of the good 5% rebate cards no longer exist today? I’m always doing research on these things for my little forum and I wish Chase or Citi would offer their 5% rebates again on gas/groceries/drugstores.

    I’m just curious – what card do you use today – in 2008? Are you continuing to use the Chase Cash Plus?

  2. Harry Sit says

    Yes, I’m still using my Chase Cash Plus card, which still pays 5% rebate. Some other cardholders were converted to the Chase Freedom card which pays 3.75% rebate if you wait until you have 20,000 points and redeem for $250. The conversion wave hasn’t hit me yet but it can happen at any time. If they convert me I will probably accept the Freedom card for simplicity. Citi Driver’s Edge has the mileage matching rebates which can be higher than 3.75% but I hate the hassle of sending them repair bills with odometer readings.

Leave a Reply

Your email address will not be published. Required fields are marked *