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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:
Rewards: .
Annual Fee: .
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: You may be eligible for as high as $300 cash back after spending $3,000 in purchases on your new Card in the first 6 months. Welcome offers vary and you may not be eligible for an offer. Cash back is received as Reward Dollars, redeemable for statement credit or at Amazon.com checkout. Terms Apply.
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 eligible purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) purchases and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.
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.
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: You may be eligible for as high as $200 cash back after spending $2,000 in purchases on your new Card in the first 6 months. Welcome offers vary and you may not be eligible for an offer. Cash back is received as Reward Dollars, redeemable for statement credit or at Amazon.com checkout. Terms Apply.
Rewards: This card is a cash back* machine. Earn 3% cash back at U.S. supermarkets, 3% cash back on U.S. online retail purchases, 3% cash back at U.S. gas stations, on eligible purchases for each category on up to $6,000 per year in purchases (then 1%). Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.
Annual Fee: $0.
*To see rates & fees for Blue Cash Everyday® Card from American Express, please click here.
Methodology
Our editors take a comprehensive, data-driven approach to identify the best credit cards in various categories. We use an objective rating and ranking system that evaluates over 100 credit cards from more than 50 issuers. While this site receives compensation from companies listed here, this does not influence our ratings or reviews. Learn more 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.
