With record inflation making a direct impact on our purchasing power over the last few years, consumers may wind up spending more on the holidays this year compared to the past. A recent PwC report estimates that 2024 holiday spending will increase 7% over last year’s figures, reaching an average of $1,638 spent on holiday gifts, travel and entertainment per shopper.
Savvy consumers can always keep their eyes out for deals and sales, but how they pay for their holiday purchases can be just as important. After all, the best credit cards for holiday shopping offer something back for each dollar spent. Some even come with intro APR offers that let consumers pay off their holiday shopping interest-free for a limited time.
What to consider when choosing a credit card for holiday shopping
If you’re looking for the best holiday credit card, you probably want a card with rewards. You should also consider redemption options, interest rates and credit card fees that apply. Here’s an overview of the specific details to look for in the best credit cards.
- Credit card welcome offers: Spending an average of $1,638 or anywhere close to that gives you the chance to earn a generous credit card welcome offer. These offers apply when you sign up for a new card and meet a minimum spending requirement within the first few months of account opening.
- Rewards rates: Compare rewards credit cards based on their earning rates. Where some offer a flat rate (usually 1.5% or 2%) of cash back on everything you buy, others offer higher rewards rates in categories like dining out, drugstores and groceries.
- Redemption options: Choose a card with rewards rates that make sense with your spending, but also understand the redemption options available to you. Where some cards let users redeem for cash back or statement credits, others offer alternate redemptions like gift cards and travel.
- Rates and fees: Make sure you understand if any annual fees apply with the cards you’re considering, as well as what the interest rates are. If you want to keep costs down and still earn rewards, consider the best credit cards with no annual fee.
How to maximize credit cards for holiday shopping
Once you find some cards you’re interested in, you’ll want to use them to your benefit in every way you can. This means maximizing the rewards you earn while reducing or eliminating out-of-pocket costs.
Earn a welcome bonus
First off, make sure you meet the minimum spending requirement to earn the welcome bonus on any new cards you sign up for. You can do this by using your card for end-of-year holiday shopping, but also for regular expenses and bills you have. For example, you can use your card for groceries, gas, utility bills and other regular expenses until you reach the spending threshold for the bonus.
Pair a few different rewards credit cards
You can also consider pairing a few different cards together to boost your total rewards haul for the holidays. For example, you can use a card that earns up to 3% or 5% back in bonus rewards in a few different categories, then switch to a card that earns 2% cash back for the rest of your spending.
➤ SEE MORE:Best credit card combinations: How to pair cards together for maximum rewards
Maximize rewards with shopping portals and offers
Consider using credit card shopping portals to earn more rewards on purchases with participating retailers. Examples include Shop through Chase as well as airline shopping portals like Delta SkyMiles Shopping and American AAdvantage eShopping.
You can also utilize “offers programs” to earn additional cash back, including Amex Offers, Capital One Offers and Chase Offers.
➤ SEE MORE:Can you use cash-back apps alongside cash-back credit cards?
Consider 0% APR credit card offers
If you want some time to pay down holiday shopping bills without any interest, look into credit cards that offer 0% APR on purchases for a limited time. Cards in this niche category let you skip interest payments for anywhere from 12 to 21 months, and some even offer rewards.
Pay your balance in full
If you’re not using an intro 0% APR credit card (and once intro APR offers end), make sure to pay your credit card balance in full each month. With the average credit card interest rate well over 20%, you won’t get ahead with rewards if you carry a balance.
The best holiday credit cards
The best holiday credit cards have generous welcome offers, lucrative rewards rates, intro APR offers or all of the above. The cards below are a few we recommend for rewards, savings on interest or both.
card_name
card_name
card_name
card_name
card_name
card_name
Frequently asked questions about holiday credit cards
How do you pick a credit card for holiday shopping online?
Choose a credit card that aligns with your online shopping habits. Consider rewards like cash back or travel points, and look for cards that offer bonus rewards for specific online retailers – especially ones you know you’ll shop a lot with for the holidays. Prioritize security features like zero liability protection, and weigh the benefits of annual fees against potential rewards. Remember to review terms and conditions, meet minimum spending requirements, and pay your bill on time to maximize your card’s benefits.
➤ SEE MORE:Best credit cards for online shopping
Is it a good idea to use a credit card for holiday shopping?
Using a credit card for holiday shopping makes sense if you want to earn rewards on spending. However, you should only charge purchases you have the cash to pay for and always pay your bill on time. If you wind up with credit card debt you can’t immediately pay off, the interest you pay will wipe out the benefit of any rewards earned.
Are there any risks to using a credit card for holiday shopping?
Using a credit card for the holidays is risky if you don’t have the cash to cover your shopping list. If you need to carry a balance, consider signing up for a 0% APR credit card that lets you skip interest for up to 21 months.
The bottom line
The best credit card for holiday shopping is the one that gets you what you want, whether that includes rewards for spending, 0% APR for a limited time or both. You may even find your ideal card is actually a few different cards that pair well due to their unique rewards rates and features.
Whatever you do, make sure to approach holiday shopping with a plan in mind — and with cash in the bank to cover your purchases. If you wind up with holiday debt because you spent more than you planned, you won’t be doing yourself any favors.
