Inflation may have a hand in our wallets but there are some things a credit card can do to ease the blow. Using a credit card for purchases has its many benefits and can aid your budget during these times of inflation (and even after). Check out the best credit card perks for fighting inflation here.
Inflation is the cause of sky-high prices, and our dollars are not stretching as far as they used to. To offset some of the financial challenges that come with inflation, we say, bring on the credit card perks! A credit card may not be the first thing that comes to mind when thinking about ways to deal with inflation. But in the meantime, have a look at the best credit card perks for fighting inflation.
0% Intro APR Offers
During inflation, having a credit card with a 0% intro APR offer can make all the difference when you have plans on making a more significant purchase. Typically, the duration period of a 0% intro APR offer can range anywhere between six months to 18 months. By making a necessary big purchase with a credit card you can spread out your payments. Add a 0% intro APR to the mix and your worries, about accruing interest on top of the already large sum, will disappear.
However, 0% intro APRs are not only for credit card purchases. They also commonly apply to credit card balance transfers. The Citi Simplicity® Card, for example, offers a 0% intro APR for 21 months on balance transfers. Current inflation interest rates are soaring. Transferring your existing debt to a credit card with a lengthy 0% intro APR on balance transfers can save you money in the long run while you pay down debt.
Statement Credits
Statement credits are often tied to introductory offers. Sometimes statement credits only apply to the first year of being a cardholder, and other times it’s an ongoing annual statement. Probably best recognized through travel credit cards offering statement credits for hotel stays, global entry, and more. However, such travel credit cards usually have an annual fee.
If an annual fee is already within your budget during inflation, best select a card that offers back a statement credit for a service you already use. Or consider a card like the Marriott Bonvoy Bold® Credit Card. It receives 15 Elite Night Credits annually – all for no annual fee.
Credit Card-Linked Offers
Many credit card issuers and payment networks have a marketplace for credit card-linked offers. Think of it as an online store where you can find credit card deals from various merchants. If shopping during inflation is all about saving a buck or two, then credit card offers can give you access to deals, coupons, and extra cash.
Start fighting inflation with access to credit card deals and offers. Browse the BestCards membership platform where you can find hundreds of deals and promotions. Find money-saving offers for dining, shopping, entertainment, and travel.
Buy now, pay later
Inflation puts prices on the rise, and credit card Buy Now, Pay Later (BNPL) options can aid in spreading out your purchases into installment payments. Card issuers like Chase and American Express have BNPL payment options for their cardholders when they shop online. BNPL payment options separate purchases into installment loans (with a fixed interest rate or fee) and commonly get paid every two weeks.
Both BNPL services for American Express and Chase apply to purchases of $100 or more. Pay It Plan It® is the Amex BNPL service and works simply by selecting a qualifying purchase through the app, then choosing a plant option for monthly payments. Once finalized, the monthly payment gets automatically included in the minimum payment due each month on your credit card. Chase offers the My Chase Plan and works similarly.
Cash Back & Rewards
The more obvious credit card perk for fighting inflation is of course earning back rewards when you shop with a credit card. It’s simple. You make a purchase, you earn rewards. The most popular cards are cash back credit cards, which can typically earn as much as 5% cash back on purchases. Usually, cardholders can benefit from flexible redeeming options, for example using the rewards towards a statement balance or making purchases.
It’s best to have a strategy when standing up against inflation with a rewards credit card. Consider signing up for a credit card that earns you the most rewards for a category you likely spend the most money on, like gas and groceries. For example, the Citi Custom Cash℠ Card earns 5% back per $1 spent on your highest spending category each billing period. There’s also the PenFed Platinum Rewards VISA Signature® Card which earns 5X points per $1 spent on gas, 3X points on groceries, and 1X points on everything else – all for no annual fee.
Related Article: Fight Inflation with Cash Back Credit Cards
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