Best credit card for someone who eats out a lot

[salilsurendran]

Hello,
One of my biggest spending categories is eating out and groceries. They total to about $400 a month. I was thinking about going for the Chase Sapphire Preferred Card since it offers 2x points for this category. That alone should cover the $95 annual fee. I right now have the Chase Freedom Card which offers 1% back and 5% back during certain quarters with no annual fee. Also since this year I will be travelling quite a bit I can use the 50k points they give for spending $4k in the first 3 months for the flight tickets. Are there any better credit cards out there for dining and grocery categories? Interest rates don't make a difference since I pay off my credit card in full every single month.

[Nutria]

the Chase Sapphire Preferred Card since it offers 2x points for this category.

2x what? (That's always the first question to ask when someone -- typically in the media -- spouts off a multiple or percentage without saying what of.)

That alone should cover the $95 annual fee.

With a fee that large, at 2% you need to spend $4,750 in order to cover the fee. $400/month for 12 months is... $4,800.

[rennigade]

2x what? (That's always the first question to ask when someone -- typically in the media -- spouts off a multiple or percentage without saying what of.)

uh...that means double the points for specified category. OP specifically said what the 2x offer is for...(edit by moderator)

$1 = 1 point if spend on lets say gas

$1 = 2 points if spend on grocery/dining out.

Make sense now?

OP...I signed up for this card less than a month ago. The annual fee is free the first year. Id say meet the $4k spending requirement in the first 3 months to get the 50k reward bonus. What you do with the points at that point is up to you. Im transferring mine to southwest and cashing out to gift cards...which will be around $550. I have points elsewhere im trying to use on flights.

If you're good with credit cards (paying balance off each month fully) I would say cancel the card after you use all the rewards (and less than 1 year to avoid annual fee) and jump to something else. Southwest card is decent...there is a $99 annual fee that you do have to pay but you also receive 50k rewards if you meet the spending requirement. Again...you can cash those in for flights or $500 in gift cards.

Rinse/repeat.

[disneysteve]

As Nutria points out, if the card has an annual fee, you need to make sure it doesn't negate the value of the rewards earned. How much do you anticipate charging to this card each year? Also, does the card give any other perks?

For example, my Marriott Rewards card has an $85 annual fee but every year on my account anniversary I got a certificate for one free night. That's easily worth more than $85 since it is good for up to a category 5 hotel. So I don't mind the fee at all. I don't have to charge a penny to the card to get my money's worth out of that fee.

[dawnwes]

Hello,
One of my biggest spending categories is eating out and groceries. They total to about $400 a month. I was thinking about going for the Chase Sapphire Preferred Card since it offers 2x points for this category. That alone should cover the $95 annual fee. I right now have the Chase Freedom Card which offers 1% back and 5% back during certain quarters with no annual fee. Also since this year I will be travelling quite a bit I can use the 50k points they give for spending $4k in the first 3 months for the flight tickets. Are there any better credit cards out there for dining and grocery categories? Interest rates don't make a difference since I pay off my credit card in full every single month.

I have a Fidelity AmEx with 2% back.

However, I have a few questions:

1. Are there certain restaurants you frequent more than others? You may be able to find gift cards for 20% off online to order and put into an app so you can save 20% instead of just your 2%.

2. Not all restaurants take AmEx. Most do, and certainly the larger chains do, but we have run into some not taking them.

3. Put gift cards on your Christmas and Birthday lists!

[amarowsky]

I have a Fidelity AmEx with 2% back.

However, I have a few questions:

1. Are there certain restaurants you frequent more than others? You may be able to find gift cards for 20% off online to order and put into an app so you can save 20% instead of just your 2%.

2. Not all restaurants take AmEx. Most do, and certainly the larger chains do, but we have run into some not taking them.

3. Put gift cards on your Christmas and Birthday lists!

I have the card too. Best card. EVER. And actually good news regarding the Fidelity Amex, is it is going to Visa, which is just better because of wider acceptance (IMO).

https://www.nerdwallet.com/blog/credit-cards/fidelity-shift-amex-visa-effect-cardholders/

[disneysteve]

Are there certain restaurants you frequent more than others? You may be able to find gift cards for 20% off online to order and put into an app so you can save 20% instead of just your 2%.

Great point. If you are frequenting national chains, definitely buy gift cards. Go to giftcardgranny.com to see what's available. This won't help if you're doing local independent places, though. For those, be on the lookout for special deals especially around the holidays. Many places will sell gift cards with a bonus. For example, buy $100 worth of cards and get a $20 card free. That's the time to stock up and take advantage of that 20% bonus.

[dawnwes]

Great point. If you are frequenting national chains, definitely buy gift cards. Go to giftcardgranny.com to see what's available. This won't help if you're doing local independent places, though. For those, be on the lookout for special deals especially around the holidays. Many places will sell gift cards with a bonus. For example, buy $100 worth of cards and get a $20 card free. That's the time to stock up and take advantage of that 20% bonus.

And check Costco if you have a membership.

[Leo]

I have the Citi Double Cash, it's basically 2% cash back. No annual fee. So in your case, $4,800/year x .02 = $96 per year.

[TexasHusker]

I've found that I only come out on a rewards card with a fee, is when I use it for my business, and all of my managers are using the card(s) for company expenses.

On my own, there's no way I would spend enough to fool with it.

[~bs]

i have the sapphire preferred card, which I do use for eating out.

the card is good for the initial sign up bonus, which is worth $600 in real travel benefits (airlines ticket or hotel) not including the points from the initial purchases.

the card is also good if you spend their rewards on their website. Each point is equal to 20% more this way. So 50,000 points = $600 in benefits


Card is good coupled with the chase freedom card because the 5% rewards you can get with the freedom card can transfer to the sapphire program. (You gain access to the 20% discount this way aswell, making it a 6% reward.

Downside of sapphire is the annual fee

Like most travel cards, it has no foreign transaction fee.

[~bs]

my no fee card is a fidelity amex, 2% everything no fee

There are quite a few 2% cards nowadays, making these cards not that special.

the citi 2% card is decent for a non-amex card.

[~bs]

2x what? (That's always the first question to ask when someone -- typically in the media -- spouts off a multiple or percentage without saying what of.)



With a fee that large, at 2% you need to spend $4,750 in order to cover the fee. $400/month for 12 months is... $4,800.

understand that this is a travel card, and the benefits are tailored to people who spend on traveling.

$95 fee is relatively standard for fee cards. The 50k point bonus is worth $600, which is 6 years of fees. If you travel internationally somewhat regularly, saving on the (typically) 2.9% FX fee makes a difference as well.

this card offers primary car rental insurance in the US, which is somewhat unusual for credit cards. Without this protection, you'll either have to pay the rental company a high rate, or take the hit on your personal insurance policy.