Credit Cards Are Offering Bigger Rewards — But Many Americans Are Going Deeper Into Debt

In today’s economy, the credit card you carry isn’t just about convenience - it’s a reflection of how you're navigating rising costs, especially at the grocery store. On one side of the spectrum, new credit cards are emerging that offer more ways than ever to earn cash back and points. On the other, millions of Americans are swiping their cards out of necessity - and falling into growing debt as a result.

The Rise of the Rewards Stack

For rewards-savvy shoppers, this is a golden age. Companies like Rakuten and Fetch have partnered with American Express to launch co-branded credit cards that supercharge rewards. With the Rakuten card, users can earn an additional 4% cash back on top of their usual offers. Fetch’s upcoming card promises an extra 10 Fetch Points per dollar spent on groceries and retail. These cards are part of a larger trend: turning everyday spending into an opportunity to earn more. Savvy users are stacking browser extensions, loyalty programs, coupons, and now specialized credit cards to save three times on a single purchase. For those who plan strategically and pay balances in full, these tools offer real value.

But for Others, Plastic Is a Lifeline

However, not everyone is swiping to save - many are swiping to survive. Since 2020, grocery prices have increased by 24%, with another 3% rise expected in 2025. As living costs continue to climb, particularly for food, housing, and transportation, families are feeling the squeeze. 

What’s Next?

The rise of co-branded rewards credit cards reflects a booming market for deal-seeking shoppers. But it’s also a sign of how competitive, and desperate, the financial landscape has become. As credit becomes more embedded in everyday spending, especially for essentials like food, the line between smart financial strategy and financial vulnerability is growing thinner. Until grocery prices stabilize and wages catch up with the cost of living, many households will continue to rely on credit cards as a stopgap. And while new rewards programs offer appealing perks for some, for others, the only thing piling up faster than points is debt.