How to Save Money With Credit Cards When Prices Are High
Bonuses, rewards and 0% APR periods can help with inflation, but so can thoughtful redemptions and periodic reviews of what your card may be costing you.
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Managing Editor With annual inflation up to 3.3% in March 2026 largely due to gas prices, consumers are feeling pinched — and pessimistic. According to the Federal Reserve Bank of New York’s Survey of Consumer Expectations (also from March), 35.9% of households are expecting a worse financial situation a year from now. That’s nearly a 16% increase compared to six months prior.
Your credit cards, when used responsibly, can be a surprising source of help. Many offer valuable benefits that can save you money on the purchases you make every day.
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While you can lean on your credit card as a source of emergency funding, credit card debt is expensive and can be hard to get out of. When you’re faced with unexpected costs, there may be less expensive ways to pay for them, such as payment plans with a medical provider or a lower-interest personal loan. Earn more where you spend the most
If you use a card that earns 1% cash back on everything, it’s a start. There are other options that earn significantly more, though, and that’s meaningful when your money doesn’t go as far. “Even slightly higher prices can be impactful when they’re on the things we buy every week,” says Elizabeth Renter, NerdWallet senior economist.
To keep things simple, switch to a card earning 2% back. If you’re willing to manage two or more cards, combine the 2% card with others that earn 3% or more in your most common spending categories.
“Cards that offer higher rewards on everyday essentials like groceries, gas, dining, or even utilities can put real money back in your pocket on purchases you are already making,” said Drew Tsitos, manager of credit card products at Navy Federal Credit Union, in an email.
Be strategic when making large purchases
If you have a large planned expense coming up, it could be a good idea to apply for a new credit card to take advantage of promotions you are eligible for when you first get the card.
Many cards have sign-up bonuses that offer a high amount of rewards if you hit a spending minimum within a set period of time, often three to six months after your application is accepted. Cash-back cards offer bonuses of around $200 to $300, while travel rewards cards’ bonuses can be significantly higher in value.
When you have to spend $3,000 in three months to earn a bonus, using the new card to buy one big thing — like the $1,500 refrigerator you need to replace your old one — will get you much of the way there. Before you apply for the card, though, consider whether you can reach the spending minimum without getting into debt.
“The key is that the purchase should already fit your budget,” Tsitos said. “Stretching your finances just to hit a spending requirement defeats the purpose.”
A card with a 0% interest promotion can also help soften the blow of a big expense. With such cards, you’ll get a year or more to make smaller payments toward your balance at 0% APR. (Just note that the interest rate will go back to its standard level once the promotion ends, so you’ll begin to owe interest on any remaining balance.) Some no-interest cards also offer sign-up bonuses and rewards on spending.
Spend rewards wisely
The value of your unredeemed points is $0, so they only help you lower costs if you actually cash them in.
Cash-back rewards are more straightforward than travel points. Usually, you can redeem them for a statement credit, so your next credit card bill will be slightly lower. Sometimes you can also redeem for a deposit into a bank account.
Travel rewards can be more complex, depending on the card, and point values can vary depending on how you use them. Still, they can be a helpful way to make travel more affordable.
Either way, don’t sit on your stockpile of points forever.
Re-evaluate the cost of your cards
When money is tight, cutting back on subscription fees is a great way to free up some cash. Credit card annual fees are a subscription, in a way, and if you’re not getting enough value out of a card to more than offset the cost, downgrading to a no-fee card is a money-saving option. With premium travel cards charging triple-digit annual fees, it’s essential to evaluate your cards’ value each year.
Another cost of carrying a card is interest if you have debt. Let’s say you carry a $5,000 balance on a card charging 20% APR. If it takes you 18 months to pay it off, you’ll spend $829 on interest.
A balance transfer credit card with a no-interest promotion can lower what you spend on interest. If you transferred that $5,000 balance to a card offering 0% APR for 18 months (assuming the card charges a 3% balance transfer fee), you’ll save $679 if you pay down your balance before the promotion ends.
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