A few weeks ago, I wrote about the best credit cards for grocery spending and reader Christian asked a question that had me floored. As a business owner, he has $100,000 worth of grocery spending every year and wanted to know the best way to maximize this:
For personal, I use my Diners Club, which gives 3 points per $1. I keep looking for a business card that pays better than 1 mile or point per $1 specifically on groceries. Any suggestions? I spend about $100k a year on groceries for work, and only Visa/MC are accepted.
I don’t know about you, but I’m about to quit my job and open up a restaurant – failure be damned! As Christian mentioned, he does get 3 points per $1 spent with his Diner’s Club card. So at least he’s doing something already to maximize that spending. But there are a few ways he could possibly get even more value for his grocery spending. For starters, he never has to worry about meeting large spending requirements. So even if he has to settle for 1 mile per $1 spent on a card like The Platinum Card from American Express, at least he’s getting extra points via the sign-up bonus.
Another way Christian can maximize his grocery spending is to channel it towards credit cards that pay out category bonuses. That’s actually the article he left his comment under, so he’s well aware of that option. Grocery bonuses tend to be limited (i.e. the first $6,000 with the Amex Everyday Preferred Card), so I would hit up every single lucrative bonus possible. Suddenly, top-tier IHG free nights aren’t so unattainable when you’re earning points twice as fast.
But getting a bunch of credit cards merely for the grocery category bonus is probably not the best strategy. After all, it’s important to focus on your travel goals and earn points accordingly. Who cares that the IHG Rewards Club Select Card offers 2 points per $1 spent if you’re a Hilton guy, right? Luckily, there are other ways to maximize $100,000+ worth of grocery spending and allow yourself a bit of redemption flexibility. There are tons of credit cards that earn more than 1 point per $1 spent – these cards earn valuable currencies. Spending $100,000 on these cards would result in a very impressive rewards account balance – definitely enough for several hotel nights and airfare. Lately, Amex Offers has been targeting people for grocery bonuses, which can add up substantially.
If Christian wants to set his sights higher than just earning points, there’s an alternative: Annual spending bonuses. What exactly is an annual spending bonus? Lots of credit cards offer incredible bonuses in exchange for hitting certain spending thresholds every year. Right away, I thought of the Southwest Companion Pass. Most people get personal and business Southwest card sign-up bonuses in order to meet part of the 110,000 miles required to earn the pass. Christian could 90% of the way there by channeling his grocery spending towards a Southwest credit card. Yes, he’ll miss out on category bonuses but he’ll save tons of cash and miles if he puts the Companion Pass to good use for the 1-2 years it’s valid.
As I said, there are lots of other great annual spending bonuses he can take advantage of. For $100,000 he can get top-tier Ritz Carlton Platinum status via the Ritz Carlton credit card ($75,000) and match it to SPG Platinum. Or he could spend his way to Hilton Diamond status and have enough spending power left to earn 10,000 MQM’s through the Platinum Delta SkyMiles Credit card. There are lots of possibilities and $100,000 will go a long way in generating all kinds of travel rewards.
I want to hear from you: Do you have any suggestions for Christian to maximize the $100,000 he has to spend on groceries every year?
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