If you’re a regular Kroger customer and you’re thinking about signing up, keep reading to learn what the Kroger Rewards World Elite Mastercard’s biggest strengths are, and which alternatives might let you earn more rewards over time.
An ok rewards card for Kroger shoppers
Before we dig into the nitty-gritty details, let’s start with the positives of the Kroger Rewards World Elite Mastercard. First, this card earns one of the highest rates of cash back for a card with no annual fee, albeit with a low spending cap. Use mobile wallets for all of your purchases up to the spend limit of $3,000 to earn $150 back in rewards. And if you’re paying your statement balance in full each month to avoid interest charges, that’s essentially free money back in your pocket. The 2% cash back rate is good, and competitive with the best flat-rate cards on the market. For those who shop exclusively at Kroger stores, it can be a lucrative deal. Cardholders can also save an additional $0.55 per gallon of gas. This reward kicks in the first first year every time you redeem at least 100 fuel points at Kroger Fuel Centers. The fact that this card doesn’t charge an annual fee might be its biggest benefit as a rewards credit card. If you’re not earning any type of cash back and don’t want a more traditional rewards credit card, the Kroger Rewards World Elite Mastercard is an alternative to consider if you frequent the Kroger family of stores. While the perks aren’t great (not unexpected for a co-branded card with no annual fee) it does provide a handful of nice protections. There’s a zero liability guarantee for fraudulent purchases and access to Mastercard ID Theft Protection which can help should you become a victim of identity theft. There’s also the Lowest Hotel Rate Guarantee – Mastercard will refund the difference if you book a hotel and find it listed for less elsewhere – as well as no foreign transaction fees should you choose to use the card outside the US. Also: Best metal credit card: Cold hard cash cards
Where it falls flat
The biggest downside of the Kroger Rewards World Elite Mastercard is the low spending cap for its 5% cash back category, as most people can spend way more than $3,000 annually. Once you hit that cap, the rewards fall to 1%, meaning you’d be better off switching to either a flat-rate card or a non co-branded rewards or grocery card. Another downside of the Kroger Rewards World Elite Mastercard is that the 2% cash back rewards are restricted to Kroger brands only. This is fine for consumers who only shop with Kroger, but that’s unrealistic for most people. Granted, you can use the card anywhere Mastercard is accepted, but you’ll only earn 1% cash back. Opting for a flat-rate card a higher rewards rate everywhere you shop. Also: Most exclusive credit cards: Oh you fancy, huh?
Who should get this card:
Someone who shops exclusively at Kroger brand grocery storesSomeone who doesn’t want to pay an annual feeA person who uses mobile wallets for most of their transactions
Who should pass:
Someone who is willing to sign up for a better cashback card to earn more rewardsAnyone who wants additional options when it comes to how they redeem their points and whereSomeone who wants to earn a good reward rate at other storesSomeone who spends more than $3,000 on purchases annually
How does it compare to other grocery store credit cards?
If you’re looking for a no-fee credit card that lets you rack up cash back at US supermarkets specifically, you may want to take a look at the Blue Cash Everyday® Card from American Express. It earns 3% cashback at U.S. supermarkets, U.S. gas stations, and U.S. online retail purchases (earned as a statement credit; up to $6,000 per year in purchases for each category, then 1%) It earns 1% everywhere else. It’s a rewarding card with no annual fee. However, if you want to step it up a notch, AmEx offers an upgraded version of the card: the Blue Cash Preferred. It earns 6% cash back (up to $6,000 spent, then 1%) at U.S. supermarkets and for select U.S. streaming services, plus 3% cash back at U.S. gas stations and on transit. It has an annual fee of $95 ($0 intro annual fee for the first year), but it would take just $1,700 in grocery spending to cover it. Consumers should also consider a flat-rate card, like the Citi Double Cash Card. It earns 2% cash back no matter where you shop (1% when you buy, 1% when you pay it off), and doesn’t have an annual fee. If you really want to maximize your rewards, you could combine either the Blue Cash Everyday or Blue Cash Preferred with the Double Cash. Use either of the Blue cards for groceries and gas, and the Double Cash for everything else. [This article was first published on The Simple Dollar in 2020. It was updated in July 2022.]
