CINCINNATI — Kroger and U.S. Bank are parting ways, and current cardholders will soon be transitioned automatically to the new U.S. Bank Smartly card. Some cardholders reached out asking what other cash-back credit cards are available to help save on groceries. I took that question to the experts to find out.
What's happening to your Kroger credit card?
The Kroger Mastercard, issued by U.S. Bank, is being discontinued. Current cardholders will be transitioned to the U.S. Bank Smartly card, which offers 2% cash back on all purchases with no annual fee.
The best cash-back credit cards for groceries
Ana Staples, a credit card industry expert at Bankrate, shared her top credit card recommendations for earning strong cash back rewards on groceries.
| Card | Cash Back on Groceries | Annual Fee | Spending Cap |
|---|---|---|---|
| Amex Blue Cash Preferred | 6% | $95/year | $6,000/year |
| Amex Blue Cash Everyday | 3% | None | $6,000/year |
| Capital One Savor | 3% on groceries & dining | None | None |
| U.S. Bank Smartly | 2% on all purchases | None | None |
American Express Blue Cash Preferred Card
- 6% cash back on groceries
- $95 annual fee
- Spending capped at $6,000 per year on grocery purchases
"One thing to be mindful about here is the $95 annual fee," Staples said. "With current grocery prices, that can be pretty restrictive, especially for families who need a higher spend there."
WATCH: Which rewards card is best for you?
American Express Blue Cash Everyday Card
- 3% cash back on groceries
- No annual fee
- Same $6,000 annual spending cap applies
Capital One Savor Card — Staples' personal pick
- 3% cash back on groceries and restaurants
- No annual fee
- No spending cap
"My personal favorite, however, is a card from a different issuer and that is a Capital One card. The Capital One Savor card," Staples said. "It earns 3% back on grocery store purchases and at restaurants. So all of your food purchases are covered basically as far as the rewards go and it doesn't have an annual cap."
How to choose the right card for you
Staples said choosing the right card comes down to three personal factors:
1. Where you spend the most: "First thing I would really think about is your personal spending habits where you're spending the most," Staples said. "Certainly groceries are one everyday category that is popular among cardholders. You will always be buying groceries. You will always be earning those rewards."
2. Whether you're willing to pay an annual fee: "For some people it requires some maintenance for the credit cards to really justify," Staples said. "If you realize about yourself that this is just something you're not willing to do, that is completely fine. There are other options that you can choose from that do not have annual fees."
3. How much time you want to spend managing rewards: "How much time you want to spend maximizing that credit card — do I really want to go that extra step to maximize that card? Do I really want to care about switching categories every quarter? Do I really want to care about the spending caps and things like that," Staples said.
Should you close a credit card?
If you decide the Smartly card isn't the right fit and open a different credit card instead, you might wonder whether you should close it—or another card you rarely use. Staples advises against doing so.
Closing a credit card can affect your credit score in two key ways, according to Staples:
- Credit utilization increases — Removing a credit line reduces your available credit, which raises your utilization ratio. Staples said credit utilization is the second most important credit factor.
- Average age of credit decreases — The longer your accounts stay open, the better it reflects on your credit profile.
Staples recommends making small, occasional charges on the card to keep it active — or calling U.S. Bank to explore other cards in their lineup.
"Just because of these little things, I always recommend either keeping the credit card open and rarely using it or looking into different products that U.S. Bank offers. They have a line of different credit cards. Maybe you'll find something that suits you better. You can call the bank and see if they can product switch you to that card," Staples said.
If there's no annual fee and you have good financial habits, keeping the card open may be the better option — so you don't waste your money.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
"Don't Waste Your Money" is a registered trademark of Scripps Media, Inc. ("Scripps").
Follow John:
- Facebook: John Matarese Money
- Instagram: @johnmataresemoney
- X/Twitter: @JohnMatarese
Follow Taylor:
- Facebook: Taylor Nimmo
- Instagram: @tnimms
- X/Twitter: @tnimms
For more consumer news and money saving advice, go to www.dontwasteyourmoney.com
