How to use your rewards credit card to fight inflation

Amid an unprecedented rise in prices for all goods and services, American credit card holders can take advantage of rewards cards to earn cash back or discounts to help their pocketbook a bit.

However, if those cards are not used correctly, the rewards will not be worth it and you will probably end up overpaying or increasing your debts.

According to a recent report from the Federal Reserve Bank of New York's Microeconomic Data Center, credit card balances are already up 26% since the first quarter.

Here are some of the top-rated rewards cards according to LendingTree.

Chase Freedom Flex

This credit card, which does not have a free year and has a 0% annual percentage rate (APR) for the first 15 months, was ranked the best rewards card for 2022 overall.

Cardholders will earn $200 after spending $500 in the first three months of account opening. They'll also earn 5% cash back on up to $1,500 in combined purchases in bonus categories they can activate each quarter.

However, after 15 months, consumers will be hit with a high APR ranging from 17.24% to 25.99%, according to LendingTree.

Blue Cash de American Express

The Blue Cash Card from American Express was ranked the best rewards credit card for everyday purchases, in part because it “ has one of the highest rewards rates on U.S. grocery purchases of any credit card. ” in the market,” according to LendingTree.

After spending $3,000 in the first six months after opening, consumers will earn a $350 statement credit.

Cardholders will get 6% cash back at grocery stores for up to $6,000 per year. They can also get 3% cash back at gas stations and transportation like taxis/rideshares, trains and buses, and 1% on other purchases, according to LendingTree.

The card has an APR of 0% the first year. After that, consumers can be hit with a high APR ranging from 16.24% to 27.24%.

Capital One SavorOne

The Capital One SavorOne Rewards Credit Card was voted best for dining and entertainment rewards.

Consumers can get 8% cash back on Capital One Entertainment purchases and tickets at Vivid Seats, as well as 3% cash back at restaurants, entertainment, popular streaming services and grocery stores (excluding supermarkets like Walmart), and Target.

Cardholders can also earn a $200 cash bonus after spending $500 within the first three months of opening the card.

There is a 0% APR for the first 15 months, but after that consumers will face an APR between 16.49% and 26.49%.