Short answer: Pay for groceries with a credit card if you pay off your balance in full each month. Otherwise, it’s better to use a debit card. If you have no credit card debt: Besides being a good way to build and maintain your credit, paying for groceries with a rewards credit card can put some money back into your pocket. “Groceries” is a common cashback category with most rewards cards. You don’t even have to pay an annual fee for a card that pays you 2% to 3% cash back on supermarket spending. Some pay even more. If you carry a balance on your credit card: Until you pay off what you owe, try to avoid putting additional charges on the card. Otherwise you’re paying a premium for the food in your cart — the cost of each item, plus whatever interest your lender charges. (See these tips on how to tackle debt to get those balances back to $0 in no time.) Until you’ve paid off your credit card, using a debit card for groceries is a wallet-friendlier way to go. Although you’re still paying with plastic, the debit card is the equivalent of paying cash since the money is immediately deducted from the available balance in your bank account. And while you forgo any cashback rewards you might earn on your purchases, you also avoid paying a high interest rate on the money you spend.