WARNING: The Kroger Credit Card is not what it seems. They may be a great grocery store but here’s what isn’t so great about the Kroger Mastercard.

Wherever you live, odds are there are Kroger-owned supermarkets in your area. In the Midwest they go by then name Kroger’s, in California it’s Ralph’s, and there are other regional names they operate under too. Combined, they are the largest grocery store chain in America. So you would think it would make sense to get their credit card, right? Not exactly. Our Kroger credit card review will show you why…

The Signup Promo:
Some people call this the American bait-n-switch; reel us in with something upfront, only to leave us stuck with a crappy deal in the long run. This marketing technique doesn’t always mean it’s a ripoff, but when it comes to the Kroger credit card, many feel it is.

$25 new account bonus: For quite a while now, they’ve been running a promotion to get a $25 credit at their store when you apply and are approved for their store card (which they call the 1-2-3 Rewards MasterCard).

I don’t know about you, but that in itself is hardly enough of an incentive. It’s the same as those pitiful bonuses you see banks give out to signup for an account. $25 may be nice, but the honest truth it’s not worth the time and hassle.

Balance Transfer: Plain and simple, this is not a good choice if you need to transfer a balance. It’s not even a 0% offer; instead it’s for 2.99%. Worst of all, it’s only for 9 months and not 12. Once you add the balance transfer fee on top of that, it makes no sense. There are so many better offers out there.

Interest Rate:
Of course these things constantly change, but at the time I’m writing this, the APR isn’t the worst I’ve seen but it’s not the best either. There are four different tiers which depend on your credit. It can be as high as 21.99%. Worst of all, it’s a variable rate which is tied to the prime rate; that will go way up once the economy is rocking and rolling again.

Kroger Credit Card Rewards:
They call their rewards program 1-2-3 Rewards points. For each dollar spent, here’s what they offer…

• 1 point on normal purchases
• 2 points at Kroger (and Kroger-owned) grocery stores. This excludes gas, alcohol, etc.
• 3 points on Kroger-brand products

Now read the fine print…
When you read about the above point structure, it sounds like you’re getting 1% on normal purchases, 2% at Kroger, and 3% on their brands… right? Unfortunately that’s not the case.

They only give you a $5 grocery coupon for every 1,000 points you spend. That only equals out to be…

• 0.5% rebate on normal purchases
• 1% rebate at Kroger
• 1.5% rebate Kroger brands

That’s pretty lousy, huh? Getting only half a percent cashback on your purchases is pathetic. Almost every other credit card offers double that. So the Kroger credit card offers no real value as far as rewards go

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A Better Option:
If you’re looking to earn only 1% cashback, odds are the cards in your wallet already give you that. If you want better than that, then you should look into the Discover More. It has no annual fee and offers up to a staggering 5% cashback bonus at every grocery store, including Krogers! Check out my Discover More review to get the scoop.