Five smart ways to use a credit card for grocery shopping to maximise cashback rewards and discounts

Efficiently planning and optimising grocery shopping with credit cards can result in substantial savings and rewards. Credit cards are financial tools that allow borrowers to borrow funds on a short-term basis and repay them within the stipulated time.

Further, credit cards not only provide users with comfort and convenience, but also unlock cashbacks, reward points and discounts. These cumulative benefits can make everyday essentials more affordable. Here are five smart ways to use a credit card for grocery shopping effectively:

I. Choose the right credit card

Every credit card has a different purpose, and not all credit cards are equal when it comes to grocery expenses. You should carefully select the card that offers the highest cashback or reward points on grocery purchases.

Not all credit cards are equal when it comes to grocery spending. Select a card that offers the highest cashback or reward points on grocery purchases. Cards such as HDFC MoneyBack + Credit Card reward grocery spending with 10X cash points (worth about 3.3% value) on transactions at several select merchants such as BigBasket and Reliance Smart SuperStore, capped at 2500 points every month.

In contrast, the HSBC Live+ Credit Card provides a direct 10% cashback on groceries, food delivery, and dining services. This is capped at ₹1000 every month. Therefore, such credit cards can be considered for extracting the maximum possible benefit from grocery shopping and monthly food bills.

II. Leverage cashback and reward points

Several credit cards multiply reward points on grocery purchases, which can later be used and redeemed for vouchers, statement credits, or handsome discounts on future spends. The American Express membership rewards credit card offers 1 point per ₹50 spent, plus bonus points on milestone spends. The card also comes with benefits like a 4,000-point welcome gift and fee waivers on high annual spends.

III. Shop at partner merchants

Credit card issuers generally have tie-ups with specific supermarkets or different online grocery platforms, such as Instamart and BigBasket. These tie-ups often result in unique offers, additional cashbacks, or online discounts. Shopping at these partner merchants can assist in maximising benefits and sometimes even unlock exclusive offers unavailable on any other platform. That is why shopping at partner merchants with the designated credit card is always a prudent strategy to make the most while grocery shopping.

IV. Utilise online grocery platforms

Online grocery platforms offer credit card deals as well as a host of other features, such as bundle deals, seasonal promotions, and unique offers for both debit and credit card holders. Leading platforms such as Swiggy and Instamart, paired with a cashback card, can yield an extra 5-10 per cent savings on top of the regular discounts. Lucrative deals can also be found around festivals such as Diwali, Holi, and Eid, among others. You should carefully consider these offers, compare them and go for the most beneficial opportunity for yourself.

V. Stay within budget and avoid interest

This goes without saying: when using credit cards, it is vital to settle dues in full and stay within budget. Focus on avoiding carrying balances to prevent interest costs. Proper grocery spending planning and judiciously using card benefits can make the entire experience of using credit cards pleasant. Proper usage can build credit health and boost credit scores.

Before going ahead with any offer, you should:

1. Check for expiry dates on offers and cashbacks.
2. Follow up with monthly caps on rewards and cashbacks.
3. Reach out to the customer support team for clarity on offers.
4. Merge card benefits with supermarket loyalty programmes for extra savings.
5. Avoid impulse expenses. Never go ahead with purchases that you don’t need.

In conclusion, by following the above-discussed smart ways and adhering to the correct fundamentals of credit card management, you can ensure that you make the most of your credit card when grocery shopping.

As a sensible credit card user, you should always focus on understanding these credit instruments properly before using them. Credit card usage can accompany debt buildup, high interest accumulation, damage to credit scores, and the temptation to overspend. One should keep these points in mind before using credit cards.

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Disclaimer: Mint has a tie-up with fintechs to provide credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards, and credit scores. Mint does not promote or encourage taking credit as it comes with a set of risks, such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.