What the Instacart Credit Card is and who issues it

The Instacart credit card is a rewards card issued by Goldman Sachs Bank that gives you cash back on Instacart purchases and other spending. You use it like any other credit card — swipe it at checkout, pay a monthly bill — but the rewards structure is built around Instacart shopping. The card does not require you to be an Instacart+ member, though the rewards are better if you are.

This is a standard credit card product, not a store card that only works at one place. You can use it anywhere Visa is accepted. The difference is that your rewards rate changes depending on where you spend: you earn more cash back at Instacart than you do at a grocery store or gas station, and you earn a base rate on everything else.

Key Takeaways

  • The Instacart card gives 5% cash back on Instacart purchases if you are an Instacart+ member, or 2% if you are not.
  • You earn 2% cash back at grocery stores and gas stations, and 1% on all other purchases.
  • There is no annual fee, but you will need to be approved for a credit line just like with any credit card.
  • Cash back is paid as a statement credit each month, not as a separate deposit to your bank account.
  • Using this card means taking on credit card debt if you do not pay the full balance each month, which costs you interest.

Rewards rates and where you earn the most

Your cash back rate depends on three things: whether you have an Instacart+ membership, where you are spending, and what category the merchant falls into. If you have Instacart+, you earn 5% cash back on Instacart orders. Without the membership, you earn 2%. At traditional grocery stores and gas stations, you earn 2% regardless of membership status. On everything else — restaurants, retail, online shopping outside Instacart — you earn 1%.

The 5% rate only applies to orders placed through the Instacart app or website. If you use the card to pay a restaurant bill or buy groceries at a store, you get the 2% grocery rate, not the 5% Instacart rate. This matters if you are comparing it to other grocery rewards cards, which often give 3% to 5% at all grocery stores, not just Instacart.

Cash back is credited to your statement each month. You do not receive it as a separate payment or deposit. If you owe $50 in cash back and your bill is $200, your next statement shows a $50 credit, reducing what you owe to $150. If you carry a balance and pay interest, the interest charges will often exceed the cash back you earn, especially at the 1% rate.

Annual fees and costs of carrying a balance

The Instacart card has no annual fee. You can open it and use it once a year without paying anything to Goldman Sachs. This is different from some premium rewards cards, which charge $95 or more per year and require you to earn enough cash back to make that fee worth it.

The real cost of this card comes from interest if you do not pay your full balance each month. Goldman Sachs sets the interest rate (called the APR, or annual percentage rate) based on your credit score and credit history. Rates vary, but as of now they typically range from 18% to 28% for most cardholders. If you carry a $1,000 balance for a month at 24% APR, you will pay roughly $20 in interest charges. That $20 wipes out the $10 to $20 in cash back you might have earned on that same $1,000 in spending.

If you plan to pay your full balance each month, the interest rate does not matter to you. If you think you might carry a balance, compare this card's APR to other cards you have been offered before you open it.

How to open the card and what you need

You can open the Instacart card through the Instacart app or website. Look for the "Instacart Card" option in the account or payments section. Goldman Sachs will ask for your Social Security number, date of birth, address, and income. They will pull your credit report (called a hard inquiry) to decide whether to approve you and what credit limit to give you.

You do not need to have an Instacart account already, though most people who open this card do. You do not need an Instacart+ membership to open it, but you will earn a lower cash back rate (2% instead of 5% on Instacart orders) without one. An Instacart+ membership costs $9.99 per month or $99 per year.

If you are approved, the card is typically delivered within 7 to 10 business days. You can use it for Instacart purchases when ready through the app while you wait for the physical card to arrive. Once you have the card, you can use it anywhere Visa is accepted.

How this card affects your credit score

Opening a new credit card will lower your credit score slightly, usually by 5 to 10 points, because Goldman Sachs pulls your credit report. This is temporary. Your score typically recovers within a few months if you pay on time.

After that, the card's effect on your score depends on how you use it. If you pay your full balance each month, the card helps your score over time because it shows lenders you can manage credit responsibly. If you carry a balance, especially a high one, it can hurt your score because it raises your credit utilization ratio — the percentage of your available credit that you are using. For example, if you have a $5,000 credit limit and carry a $2,000 balance, your utilization is 40%, which is high enough to lower your score.

The best way to use any credit card for your score is to spend what you would spend anyway, then pay the full balance before the due date each month. The cash back is a bonus, not the reason to carry a balance.

Comparing the Instacart card to other grocery and rewards cards

The Instacart card makes sense if you order from Instacart regularly and have an Instacart+ membership. The 5% cash back rate is competitive with other grocery rewards cards. However, if you do most of your grocery shopping in stores rather than through delivery, other cards may give you more cash back. The Chase Freedom Unlimited card, for example, gives 1.5% cash back on all purchases with no annual fee, which is simpler but lower than the Instacart card's rates.

If you shop at a specific grocery chain, that chain's own credit card might offer higher rewards at that store. Whole Foods cardholders get 5% cash back at Whole Foods. Kroger cardholders get fuel discounts and rewards. These store cards are often easier to get approved for if your credit score is lower, but they only work at one store.

The Instacart card's advantage is flexibility: you can use it anywhere, and you get bonus rewards on Instacart purchases if you have the membership. Its disadvantage is that the 5% rate only applies to Instacart, not to all grocery stores. If you want one card that gives high rewards everywhere, a general rewards card might be better. If you want the highest rewards specifically on Instacart, this card is worth considering.

What happens if you miss a payment or run into trouble

If you miss a payment, Goldman Sachs will charge you a late fee (typically $25 to $40 for the first late payment) and report the missed payment to credit bureaus. A single late payment can lower your credit score by 100 points or more. If you miss payments for 30, 60, or 90 days, the damage gets worse and the card issuer may freeze your account or send your debt to a collection agency.

If you are struggling to pay your bill, contact Goldman Sachs customer service before the due date. They may be able to work out a payment plan or temporarily lower your interest rate. Waiting until after you miss a payment makes it much harder to negotiate. You can find the customer service number on your statement or the back of your card.

Frequently Asked Questions

Do I need an Instacart+ membership to use the card?

No. You can open and use the card without a membership. However, you will earn 2% cash back on Instacart orders instead of 5%. If you order from Instacart more than a few times per month, the membership ($9.99 monthly or $99 yearly) often pays for itself through the higher cash back rate.

Can I use the Instacart card at other grocery stores?

Yes. You earn 2% cash back at any grocery store or gas station, not just Instacart. You earn 1% on all other purchases. The 5% rate is only for orders placed through Instacart's app or website.

What is the credit limit, and can I increase it?

Goldman Sachs decides your starting credit limit based on your credit score, income, and credit history. Limits typically range from $500 to $5,000 or higher. You can request an increase after you have had the card for a few months and made on-time payments. Contact customer service to ask.

Does the cash back expire?

No. Cash back is credited to your account each month and does not expire. It reduces your balance due, so you can use it when ready or let it accumulate.

What happens to my rewards if I close the card?

Any cash back that has already been credited to your account stays on your account. You can use it to pay your balance. Cash back that you have earned but not yet credited (usually credited at the end of the month) will still be credited after you close the card.