3 Reasons to Get a Grocery Rewards Credit Card in 2023

Do you buy a lot of food?

The end of the year is a great time to sit down, take stock, and really dig deep on your finances. Part of this exercise should ideally be evaluating your existing credit card accounts and the kind of spending you do with them. If you're like most people, you spend more money in some categories than in others.

Research from Motley Fool Money shows that Americans spent an average of $691 per month on food in 2021, with $438 (or 63%) of that spending going toward groceries. And those costs have increased in 2022, thanks to a familiar nemesis -- inflation. If you're wanting a new card in 2023, here's why you should consider going after a grocery rewards credit card.

1. You're spending more on groceries

The cost of groceries (or "food at home," as it's designated) was up 12.4% between October 2021 and October 2022, according to the latest Consumer Price Index Summary. That isn't good, and we can all hope that inflation will cool off in 2023, but no one knows when (or if) that will happen. Paying with a grocery rewards card may help offset some of the extra you're paying at the grocery store -- in fact, you can get as much as 6% cash back by getting one of the best cards available.

2. Many have no annual fee

If you talk to credit card fans, you'll often get the pleasure of discussing annual fees and whether they're worth paying. Some people fully lean in and don't mind paying these fees in exchange for the rewards they earn from using the cards, and this is certainly an understandable position. If the card you're interested in does in fact come with an annual fee, run the numbers and see if the cash back or points you could earn with it will make that fee worthwhile.

My newest credit card is a grocery rewards card with an annual fee, but based on my own grocery spending, the card will more than pay for itself every year. That said, if you're already spending 12.4% more for your groceries in 2022 than you were at the same point in 2021, you may be reluctant to take on yet another expense in the form of an annual fee. In that case, you're in luck -- many of the best grocery rewards credit cards don't have fees.

3. Some offer rewards on other spending

If the promise of receiving cash back or points on your grocery purchases isn't a sweet enough deal for you, you should know that some of the best grocery rewards credit cards have other perks too. You could also be rewarded for your spending on gas, dining out, streaming services, or other common expenses that many of us just can't (or won't) live without. With benefits like that, these cards are worth considering.

If you don't already have a credit card that gives you the chance to earn points or cash back on your grocery purchases, 2023 might just be a great time to apply for one.