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Combat Inflation with a Cash Back Credit Card
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Nearly 9 in 10 Americans have taken up bargain-hunting as a necessity as inflation pushes up prices across the board, according to a poll conducted by The Washington Post and George Mason University’s Schar School of Policy and Government in June 2022. And it’s easy to see why—as inflation rises, the purchasing power of the dollar declines, meaning every cent needs to stretch further.
While it’s impossible for an average person to fight inflation directly, there are a few tools available that can help mitigate rising prices by bringing in a little extra income: for our purposes, that’s a credit card with strong cash back rewards. And it’s not hard to see why: an extra 1-2% back every time you use a credit card might not seem like a lot, but small rewards can add up to big savings in the long run with responsible credit card use.
How a Cash Back Card Can Help
There are three main things to consider when thinking about how a cash rewards credit card can help offset some of the squeeze that comes from inflation:
- Ongoing rewards: The best cash back credit cards offer higher rates of return when using the card, either on specific categories or for every purchase without restrictions. While rewards may take time to add up, they’re a consistent and predictable way to up your purchasing power.
- Welcome offers: In addition to ongoing rewards, a cash back card with a welcome offer can provide a quick way to put cash back in your pocket so long as you spend the required amount in the allotted time. Unlike ongoing rewards these are one-and-done, so it’s best to plan ahead to make sure you can hit that spending goal responsibly.
- Annual fees: Fees are important when considering a new card. While a given card may have an outstanding rewards rate or welcome offer, it may not be worth it if it has a similarly astronomical annual fee.
Thankfully, there are a number of cards that offer the right combination of rewards program, welcome offer and low-to-no annual fee – continue on to see our top picks:
Discover it® Cash Back
If you like your credit rewards in cash, this is a great pick with its outstanding cash back match program in your first year.
Welcome Offer: Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
Rewards: 5% cash back at different places each quarter up to the quarterly maximum when you activate. 1% unlimited cash back on all other purchases - automatically.
Annual Fee: $0.
Bank of America® Customized Cash Rewards credit card
If you want choice in how you earn cash back rewards, this is the only card that lets you choose your rewards category to match your buying habits.
Welcome Offer: $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
Rewards: 6% cash back for the first year in the category of your choice, 2% cash back at grocery stores and wholesale clubs, and unlimited 1% cash back on all other purchases. After the first year from account opening, you’ll earn 3% cash back on purchases in your choice category. Earn 6% and 2% cash back on the first $2,500 in combined purchases each quarter in the choice category, and at grocery stores and wholesale clubs, then earn unlimited 1% thereafter. After the 3% first-year bonus offer ends, you will earn 3% and 2% cash back on these purchases up to the quarterly maximum.
Annual Fee: $0.
Blue Cash Everyday® Card from American Express
This is an excellent $0-annual-fee cash back card that lives up to its name – it’s one of the best offers out there for everyday purchases and its welcome offer just sweetens the deal.
Welcome Offer: Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.
Rewards: This card is a cash back* machine. 3% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%. 3% Cash Back on U.S. online retail purchases, on up to $6,000 per year, then 1%. 3% Cash Back at U.S. gas stations, on up to $6,000 per year in purchases, then 1%. 1% cash back on other purchases. Terms apply.
Annual Fee: $0.
*To see rates & fees for Blue Cash Everyday® Card from American Express, please click here.
Blue Cash Preferred® Card from American Express
If you’re not afraid of having to eventually pay an annual fee, this is one of the best cash back* offers on the market today.
Welcome Offer: Earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months.
Rewards: This card makes earning cash back* a breeze. Earn 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% Cash Back on select U.S. streaming subscriptions, 3% Cash Back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more), 1% Cash Back on other purchases. Terms apply.
Annual Fee: $0 intro annual fee for the first year, then $95..
*To see rates & fees for Blue Cash Preferred® Card from American Express, please click here.
Capital One Quicksilver Cash Rewards Credit Card
The Capital One Quicksilver Cash Rewards Credit Card is a simple and easy-to-use card with a powerful ongoing rewards rate - a great pick for just about any wallet.
Welcome Offer: Earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening.
Rewards: 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply) – it’s as simple as that.
Annual Fee: $0.
Methodology
Each month, the CompareCards team reviews over 100 credit card offers examining the features most valuable to consumers including rewards, welcome offer, the interest rate, fees and other features to identify the best offers shown here.
Editorial Note: This content is not provided or commissioned by the credit card issuer. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.
*Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply
*To see rates & fees for Blue Cash Everyday® Card from American Express, please click here.
*To see rates & fees for Blue Cash Preferred® Card from American Express, please click here.
