5 Ways To Maximize Your Credit Card Rewards During Holiday Shopping

Credit cards are a great way to save on purchases you make every day. With the holiday shopping season nearly here, now is the time to make your gift-giving list and find out how you can get the most out of your holiday shopping purchases. Everything Finance offers five tips to maximize your credit card rewards.

Gift Cards

Many rewards credit cards let you exchange the points you’ve earned for gift cards at your favorite retailers. Some, like Citi, even offer discounted gift cards. If you take advantage of this program, you can see serious savings when you buy holiday gifts. You can give these cards to your friends, family, or coworkers, or use them to buy gifts when you shop.

Travel

Many people might feel apprehensive about traveling this holiday because of the pandemic, but if you’re still planning to visit friends and relatives elsewhere, make sure you use your credit card points to get the best possible deal.

When it comes to airline credit cards, Southwest and American Airlines usually have the most generous bonuses for travel and new cardholders. If you use your card responsibly throughout the year or earned a sizeable sign-on reward, there is a strong chance you can get a round trip flight for free.

But the savings don’t stop with flights — you can also redeem your points for discounted hotel reservations. If your stockpile of rewards is big enough, you could potentially bring somebody with you on a low-cost holiday trip.

Rewards credit cards also have their fair share of generous travel perks, like travel insurance, rental car insurance, or even access to a cozy lounge at the airport. Check your account online or contact customer service to find out what rewards are available to you.

Consumer Goods

Depending on the credit card company, you may purchase certain products on sale if it offers an online shopping portal. You can use your points toward these items or use your credit card to earn more. Because these platforms give you special promotional deals, they can be an excellent strategy to save on holiday shopping beyond Black Friday or Cyber Monday.

For example, Citi Diamond Preferred cardholders can access City Easy Deals, which features goods such as clothing, electronics, products for your home and kitchen, purses, watches, sports gear, and much more. These items often have a significant discount, so make sure to check if your credit card has a digital shopping portal benefit. 

Cash Back

Cash back is one of the best ways that credit cards help you save money, and luckily, these rewards are effortless to get. Discover credit cards typically have the most lucrative cash back programs, although the perks typically only apply to specific spending categories. Additionally, these categories change every quarter, so you should check every three months, so you don’t miss these deals. 

The best cash back credit cards will give you 1% to 2% back on any purchase you make. When you add up the cost of gas, food, and miscellaneous items, that rate can leave you with serious savings.

If you have a credit card with cash back rewards and want to use them toward your holiday shopping, it’s as easy as transferring the funds to your bank account and using your debit card when you go shopping.

Statement Credit

It’s not uncommon for people to come out of the holidays with more debt than they had. The extra expenses that come with holiday travel, gifts, clothes, meals, and everything else often leave many people swiping their plastic left and right to cover everything.

But if you have unused points from your credit card rewards program, why not use them to cover some of your unpaid charges? It’s a two-for-one: you can save on holiday purchases you used your card on while also trimming your monthly billing statement. 

For example, if you have an American Express card, you can use your points to shop on Amazon. Amazon will show you how many points you have and how many points the product you are buying is worth. 

When you have a better understanding of your credit card rewards, you can easily take advantage of them. Holiday shopping doesn’t have to be stressful, especially when you have the right type of credit card.

Credit Card Deals To Use This Holiday Season

 

  • Amazon Prime Store Card: You have to be a Prime member, and you can only use it on Amazon. But, if you’re a frequent Amazon shopper, you can get 5% back on every transaction.

 

  • American Express Blue Cash Preferred Card: This card will give you $150 back if you spend $1,000 within six months after applying. You can also receive 6% cash back on groceries and 3% on gas.

 

  • Chase Freedom: You can get $150 if you spend $500 with this card within three months of signing up. It also offers a generous 5% cashback on a variety of categories every quarter. 

 

  • Citi Double Cash Card: You get 2% back on every purchase, making it one of the best cashback cards available.

 

Sources
  • Chonce. Everything Finance, everythingfinanceblog.com/22400/use-credit-card-rewards-this-christmas.html.
  • Cochrane, Matthew. “Use Credit Card Rewards to Make Your Christmas Budget Merry and Bright.” The Motley Fool, The Motley Fool, 28 Nov. 2017, www.fool.com/credit-cards/2017/11/28/use-credit-card-rewards-to-make-your-christmas-bud.aspx.
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