1-2-3 REWARDS® Visa® Card: Should You Apply?

The 1-2-3 REWARDS® Visa® Card isn’t very rewarding, even for those who frequently shop at Kroger stores. If you’re looking for a credit card to provide savings on grocery and gas purchases, you can probably do better with other offers, like the Chase Freedom®.

Review: Our Thoughts On the 1-2-3 REWARDS® Visa® Card

The 1-2-3 REWARDS® Visa® Card can provide decent rewards to cardholders who buy their gas at Kroger’s, but doesn’t offer much beyond that. Other cash back credit cards, like the Citi Double Cash Card or the Chase Freedom® can give their users much better returns on all-around purchases in categories the average consumer shops in every day. The saving on gas only lasts for one year, during which cardholders can get 25 cents off every gallon purchased at Kroger Family Fuel centers. To qualify, however, you must use the card to earn and redeem 100 points within a month. We explain this benefit more in the benefits section below.

The estimates above are based on spending data from the Bureau of Labor Statistics. We also made the assumption that ALL grocery purchases were made at Kroger, and all gas purchases as well.

Since the 1-2-3 REWARDS® Visa® Card has no annual fee, there is very little risk to applying for it, if you’re looking for a card to save on gas. However, you should not apply for this card if you want to get a single card you can use everywhere else. If that’s what you’re after, we recommend looking at the top gas rewards credit cards – those tend to be a better balance between rewards you earn at the pump and at the grocery store.

While store credit cards are generally not the best, some of Kroger’s competitors (like Wal-Mart and Costco) put out significantly better offers for their customers. The Costco Anywhere Visa® Card is especially worth mentioning, since it is a competitive even when compared to the best credit cards on the market.

Bottom Line: The 1-2-3 REWARDS® Visa® Card doesn’t have many benefits worth writing home about. Most other credit cards can produce similar, if not better, results that give you much more flexibility. The card may be worth applying for if you are someone who frequently buys their gas from Kroger.

1-2-3 REWARDS® Visa® Card Benefits & Features

The 1-2-3 REWARDS® Visa® Card gives consumers reward points when used to make purchases of Kroger family brand products, at Kroger stores (excluding fuel centers) and anywhere Visa cards are accepted. When you break down the value of these points to the rate at which you earn them, that translates to a 1.5%, 1%, and 0.5% return respectively.

Additionally, cardholders can also earn 25 cents off per gallon for one year at Kroger Family of Stores Fuel Centers, when you redeem 100 fuel Rewards points. However, it should be noted that this card doesn’t earn any reward points whenever you use it to pay for purchases at Kroger Fuel Centers. The national average price of gas as of writing this article is around $2.21. Therefore, the 25-cent discount would represent roughly a 11.3% discount, which is quite substantial. It’s worth noting that the fine print on the card says that you get this discount “when you redeem at least 100 existing fuel points earned in a single month”. Therefore, you need to spend enough money using the Kroger card to qualify for it.

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Annual Fee	No Annual Fee
Purchase APR	14.24% to 24.24% Variable
Card Details	No Annual Fee 1 point anywhere Visa Cards are accepted 2 points in the Kroger® family of stores (excluding fuel centers) 3 points on the Kroger family of quality brands Rewards are sent automatically every quarter. Every 1,000 points you earn gets you $5 in free groceries An additional 25 cents off per gallon for ONE YEAR at Kroger Family of Stores Fuel Centers2 when you redeem 100 fuel Rewards points

All the rewards you earn are automatically redeemed every quarter. Every 1,000 points you accumulate is worth $5 in groceries at Kroger.

How Does the 1-2-3 REWARDS® Visa® Card Compare to Other Credit Cards?

To better measure the value of the 1-2-3 REWARDS® Visa® Card, it’s best to compare it against other available options. We contrast the benefits of other popular cash back cards against the Kroger credit card below.

1-2-3 REWARDS® Visa® Card vs Costco Anywhere Visa® Card

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The Costco Anywhere Visa® Card is one of the top store-branded credit cards, chiefly due to how good it is when used outside of Costco locations. Most other store cards, including the 1-2-3 REWARDS® Visa® Card, excel at one thing, and are mediocre on everything else. This makes them a poor choice for an ‘everyday’ credit card. The Costco Anywhere Visa® Card breaks that trend. It gives users 4% cash back on eligible gas purchases for the first $7,000 per year in gas purchases, 3% back at restaurants and travel worldwide, and 2% back on all other Costco purchases. Any Visa purchases that falls outside of those categories earns a 1% return. There are simply a lot more ways to get money back in your pocket through the Costco Anywhere Visa® Card than with the 1-2-3 REWARDS® Visa® Card. If you shop with both stores, you should get the Costco card over the one offered by Kroger.

1-2-3 REWARDS® Visa® Card vs Citi Double Cash Card

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The Citi Double Cash Card is a top-rated cash back credit card that gives consumers an effective 2% rewards rate on all purchases. Users get 1% back whenever they make a purchase, and another 1% back when that purchase is paid off. While this isn’t enough to beat the 1-2-3 REWARDS® Visa® Card when it comes to things like gas purchases at Kroger, it is significantly better in virtually all other aspects. The only major downside to some may be the fact that the Citi Double Cash Card requires excellent credit scores (above 720). If you’re someone with a below-average score, it may be difficult to qualify for this offer.

1-2-3 REWARDS® Visa® Card vs Chase Freedom®

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The Chase Freedom® has the potential to give consumers significantly better returns than the 1-2-3 REWARDS® Visa® Card. This card awards 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter, and 1% on everything else. Those 5% categories include things like gas stations, wholesale clubs, and even Amazon.com. As long as you’re comfortable with reward categories shifting around throughout the entire year, the Chase Freedom®’s reward structure is likely to give the better overall value. Keep in mind that you will need to make sure to activate your bonus categories each quarter, or else you’ll only get the 1% rate on everything.

One more thing worth noting about the Chase Freedom® is that it comes with a sign-up bonus– something that is missing on the 1-2-3 REWARDS® Visa® Card. Users who spend at least $500 on purchases within the first 3 months of card membership will receive a bonus $150.

Compare Cash Back Rewards Using Our Model

It can be difficult to understand how many rewards you can earn with one card versus another. We build a calculator that can easily show you the expected rewards value on cards like the 1-2-3 REWARDS® Visa® Card based on how much you spend. Input your estimated monthly budget by pressing the gear icon below, and our model will do the rest. This allows you to easily compare across many options, with results that are tailored to how you spend your money.

RewardsNet Rewards RateAPRAnnual FeeBonus ValueRewards By MonthRewards Rate By Month

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Savings Through (Through 24 Months)	Rewards	Dollars

Monthly Spend: $1,430

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Card	Annual Fee	Net Rewards Rate ValuePenguin calculates the value of rewards by estimating the dollar value of any points, miles or bonuses earned using the card less any associated annual fees. The estimates here are ValuePenguin's alone, not those of the card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer.	Bonus ValuePenguin calculates the value of rewards by estimating the dollar value of any points, miles or bonuses earned using the card less any associated annual fees. The estimates here are ValuePenguin's alone, not those of the card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer.	Rewards Value ValuePenguin calculates the value of rewards by estimating the dollar value of any points, miles or bonuses earned using the card less any associated annual fees. The estimates here are ValuePenguin's alone, not those of the card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer.
Citi Double Cash Card
	No Annual Fee	1.91%	$0	$686
Learn More	Graph Card	Read Review	More Details
Annual Fee No Annual Fee APR 12.99%, 17.99% or 22.99% Variable Card Details 1% cash back on purchases and another 1% cash back when you pay for those purchases Estimated Rewards Through 24 Months Card Rewards Dollars* Spending Rewards 686 686 Total 686 686
Capital One® Quicksilver® Cash Rewards Credit Card
	$0	1.71%	$100	$615
Apply Now	Graph Card	Read Review	More Details
Annual Fee $0 APR 13.24% - 23.24% (Variable) Card Details One-time $100 cash bonus after you spend $500 on purchases within 3 months of approval Earn unlimited 1.5% cash back on every purchase, every day Every 10th Uber ride is free up to $15 when you pay with your Quicksilver card through March 31, 2017 No rotating categories or sign ups needed to earn cash rewards; plus, cash back doesn't expire and there's no limit to how much you can earn 0% intro APR on purchases for 9 months; 13.24%-23.24% variable APR after that Balance transfers also have a 0% intro APR for 9 months; 13.24%-23.24% variable APR after that; a 3% fee applies to each balance transferred Pay no annual fee or foreign transaction fees Note: The information in this box was provided by Capital One® and is not part of our independent analysis. Estimated Rewards Through 24 Months Card Rewards Dollars* Spending Rewards 515 515 Bonuses 0 100 Total 515 615
Costco Anywhere Visa® Card
	No Annual Fee	1.66%	$0	$598
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Annual Fee No Annual Fee APR Card Details 4% cash back on eligible gas worldwide, including gas at Costco, for the first $7,000 per year in gas purchases and then 1% thereafter 3% cash back on restaurant (including cafes, bars, lounges and fast food restaurants) and eligible travel purchases worldwide, including airfare, hotels, car rentals, travel agencies, cruise lines and Costco Travel 2% cash back on all other purchases from Costco and Costco.com 1% cash back on everything else Requires you to be a Costco Member Doubles as your Costco Membership Card Citi® Private Pass Estimated Rewards Through 24 Months Card Rewards Dollars* Spending Rewards 598 598 Total 598 598
Chase Freedom®
	$0	1.37%	$150	$493
Apply Now	Graph Card	Read Review	More Details
Annual Fee $0 APR 14.24%-23.24% Variable Card Details Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate Unlimited 1% cash back on all other purchases - it's automatic 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 14.24-23.24%. Balance transfer fee is 5% of the amount transferred, $5 minimum Enjoy new 5% categories every 3 months like gas stations, restaurants, and wholesale clubs Cash Back rewards do not expire as long as your account is open No annual fee Estimated Rewards Through 24 Months Card Rewards Dollars* Spending Rewards 343 343 Bonuses 0 150 Total 343 493
Capital One® QuicksilverOne® Credit Card
	$39	1.21%	$0	$437
Apply Now	Graph Card		More Details
Annual Fee $39 APR 23.24% (Variable) Card Details Earn unlimited 1.5% cash back on every purchase, every day Every 10th Uber ride is free up to $15 when you pay with your QuicksilverOne card through March 31, 2017 No rotating categories or sign ups needed to earn cash rewards; plus, cash back doesn't expire and there's no limit to how much you can earn 0% intro APR on purchases for 9 months; 23.24% variable APR after that Get access to a higher credit line after making your first 5 monthly payments on time Fraud coverage if your card is ever lost or stolen Note: The information in this box was provided by Capital One® and is not part of our independent analysis. Estimated Rewards Through 24 Months Card Rewards Dollars* Spending Rewards 515 515 Less Annual Fees 78 Total 515 437
1-2-3 REWARDS® Visa® Card
	No Annual Fee	0.59%	$0	$211
Apply Now	Graph Card		More Details
Annual Fee No Annual Fee APR 14.24% to 24.24% Variable Card Details No Annual Fee 1 point anywhere Visa Cards are accepted 2 points in the Kroger® family of stores (excluding fuel centers) 3 points on the Kroger family of quality brands Rewards are sent automatically every quarter. Every 1,000 points you earn gets you $5 in free groceries An additional 25 cents off per gallon for ONE YEAR at Kroger Family of Stores Fuel Centers2 when you redeem 100 fuel Rewards points Estimated Rewards Through 24 Months Card Rewards Dollars* Spending Rewards 42,240 211 Total 42,240 211