I’m a Financial Planner: 5 Things To Consider Before Buying Groceries With Your Credit Card

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But they can also be extremely expensive.

Credit card companies earn billions of dollars a year on interest charges alone, not to mention other fees.

If youre thinking about buying groceries with your credit card, do so with a plan in mind.

That way, you might get the most benefits with the least amount of hassle or fees.

Heres what they said.

But if you use it because youre struggling financially, that could be a sign of a bigger problem.

This situation demands a closer look at your overall financial health to identify and address underlying issues.

Then, make a budget either manually or via afree budgeting app based on your income and expenses.

This means more than just paying the minimums it means paying off your balance in full each month.

Paying off the full balance avoids incurring interest from month to month, said Kovar.

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Be cautious of carrying a balance that can lead to interest charges [and] outweigh the potential benefits.

This makes your groceries significantly more expensive over time.

Check your cards interest rate and any other fees.

While youre at it, find out when your card actually accrues interest.

This can also happen if youre purchasing these foods because theyre the only thing you could afford.

Ensuring you have access to nutritious food is crucial for maintaining overall well-being.

Regardless of how you pay for them, it might be time for a change if they dont.

But your credit card usage also affects your credit score.

From this, 35% of your score is based on your payment history.

This means you could build credit if it’s possible for you to reliably make those on-time payments.

Another 30% of your score is based on your credit utilization (amounts owed).

This applies not only to your grocery purchases, but to any other expense you charge to your card.