Three Credit Cards to help combat soaring food costs

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Sandwich and euro money. Expensive food

By Alyssa Furtado, RateHub.ca

Special to the Financial Independence Hub

A University of Guelph report predicts Canadians will spend an additional $345 on groceries this year. However, there are ways to help offset the rising costs using certain types of credit cards.

Food is getting more expensive and the weak Canadian dollar hasn’t helped. The report notes that for every cent the dollar drops over a short period of time, fruits and vegetables are likely to rise by more than 1%. Unfortunately, more than 80% of all fruit and vegetables are imported.

Going out for dinner is also expected to cost more this year. Food prices in restaurants are forecast to rise between 1.5% and 3.5% in 2016.

RateHub.ca has found a few cash-back credit cards that can help neutralize these rising food costs. Here are our three favourites:

Scotia Momentum Visa Infinite

scotia-momentum-visa-infiniteOne of the best cash-back credit cards is the Scotia Momentum Visa Infinite card. You can earn 4% back on groceries and gas, 2% cash back at drug stores and recurring bill payments, and 1% cash back on everything else.

The card also comes with a number of benefits, including travel emergency medical insurance, trip interruption, flight delay, delayed and lost baggage, and rental car collision/loss damage insurance. If you apply before May 31, the $99 annual fee is waived for the first year.

SimplyCash Card from American Express

simplycash-amexThe SimplyCash Card from American Express is a great cash-back card with no annual fee. For the first six months you have the card, you can get 5% back on purchases at gas stations, grocery stores, and restaurants (up to a maximum of $250 cash back). When the six months are over, you’ll earn 1.25% cash back on all purchases.

Another nice thing about this card is you can earn referral bonuses of $100 for every friend who gets approved. The maximum annual referral bonus is $1,500. And if you want to use Apple Pay, this card is compatible.

BMO CashBack MasterCard

bmo-cashback-cardThere’s also no fee on the BMO CashBack MasterCard. You’ll earn 1% cash back on all purchases with no restrictions. And there’s a great sign-up offer. Apply before April 30 and you’ll get $25 cash back. If you spend $1,500 in the first three months of receiving the card, you’ll earn an additional $50.

The card also allows you to receive a discount of up to 25% when you rent a car at participating Alamo Rent A Car and National Car Rental locations. You can add another cardholder for free and earn additional cash back.

The bottom line

If you’re looking to trim down your food costs, these credit cards can help make your trips to the store a little more rewarding and make your grocery bill seem a little bit smaller.

FurtadoAlyssa Furtado is a passionate entrepreneur, financial expert, digital marketer and educator and founder of RateHub.ca, a website that compares Canadian mortgage ratescredit card deals, deposit rates and insurance. Its goal is to empower Canadians to search smarter and save money.

 

 

 

 

 

 

 

 

 

 

 

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