Kroger 1-2-3 Rewards Credit Card Review

Kroger Credit Card

The Kroger credit card is called the 1-2-3 Rewards Visa. Yes, it is a Visa so it can be used not only at Kroger stores but wherever Visa is accepted. You earn rewards or points on purchases at Kroger and on outside purchases with this card. Let’s take a look at the details of this card and see if it is potentially the right credit card for you.

Interest & Fees

Credit CardKroger 1-2-3 Rewards
Annual Percentage Rate (APR)14.99% to 24.99% based on creditworthiness. Variable based on prime.
Balance Transfer APR14.99% to 24.99% based on creditworthiness. Variable based on prime.
Cash Advances APR26.24%
Balance Transfer FeeGreater of 4% of the amount of each transfer or $10.
Cash AdvancesGreater of 4% of the amount of each cash advance or $10.
Convienience Check FeeGreater of 4% of the amount of each advance or $10.
Foreign Transaction Fee2.8% of each foreign transaction
Late Payment Fee$38
Returned Payment Fee$35
Overdraft ProtectionNone
Annual Fee$0
Grace PeriodAt least 24 days after the close of each billing cycle.

1-2-3 Rewards

This card allows you to earn points for purchases. The amount of points you receive depends on where you use your Kroger credit card. Here is a breakdown of how you earn points:

  • 1 point per every qualifying net $1 spent at places where Visa is accepted
  • 2 points per every qualifying net $1 spent at Kroger
  • 3 points per every qualifying net $1 spent on the Kroger Family of Brands. The family of brands means the brands that Kroger manufacturers such as Private Selection ice cream.

The 1-2-3 rewards translates into 0.5%-1%-1.5% cash back based on the point breakdown directly above.

These points allow you to earn free groceries as you spend. Your points will accumulate as you make purchases. 1,000 points is equal to $5 in reward certificates. Kroger will issue reward checks four times a year based on your spending.

Fuel Rewards

You save an additional 25 cents per gallon for the first year when you redeem 100 fuel points. This only applies at Kroger fuel centers. After one year, the fuel discount will be reduced to 5 cents per gallon. You must use your 1-2-3 Rewards card for this reward.

Should you get this card?

You have to spend a lot to earn rewards and the rewards are not that spectacular. You can do the math on your own to get a rough estimate of the rewards you might receive based on your estimated spending.

Remember that it takes 1,000 points to earn $5.00. As an example, if you spend $500 at Kroger buying all non-Kroger brands, you will only earn $5.00 in rewards (1% back).

You would be better off getting a standard cash back credit card that offers cash back on every purchase. For example, if you had a cash back credit card such as the Capital One Quicksilver, you would receive 1.5% cash back no matter the purchase. You would receive $7.50 cash back on the same $500 of spending at Kroger with the Capital One card.

The biggest advantage of the Kroger 1-2-3 Rewards credit card is the 25 cents off per gallon for the first year. You must fill your tank at Kroger Fuel Centers to obtain this discount, which may not be convenient for some. However, you can save a lot of money over a year if you routinely need to fill your tank.

If you fill up with 15 gallons per visit at a Kroger Fuel Center, you will save $3.75 per fill up. Remember that the discount applies when you redeem at least 100 existing fuel points earned in a single month. This is an excellent discount despite it only lasting a year.

Many people will be able to obtain a better card that provides more value. We suggest taking a look at other rewards or cash back cards that offer more return based on your spending. As an alternative to this card, you may want to look at other grocery store credit cards that potentially have better rewards for your needs. If you live in the Midwest, the Meijer credit card may be an option for you.


Image Credit: Mike Kalasnik