Rack Up Rewards
The holiday season is a period of receiving and giving gifts and spending on different purchases. If you are not careful, you can get carried away with the warmth and excitement of the season that you overspend and end up in debt. To prevent this from happening, consider using a holiday credit card that offers points or cash back when you make purchases. If you want to make your holiday shopping season less expensive, here’s an insight into some credit cards you can use to earn points.
1. Wells Fargo Active Cash Card
The Wells Fargo Active Cash Card comes with a welcome cash reward of $200 when you spend a minimum of $500 purchases in the first three months. This card has one of the competitive APRs, a 0% intro APR for 15 months, and a $0 annual fee. The active cash card offers an unlimited 2% reward on all purchases without restrictions and quarterly activations. With this card, you can go shopping, have dinner with your loved ones, or travel during the holidays. The card also has advanced fraud monitoring, which would be quintessential during the busy holiday season.
2. Chase Sapphire Preferred Card
This card has an exciting welcome bonus for new users, which may come in handy this festive season. It allows users to earn up to 60,000 bonus points after spending $4000 on purchases within the first 3 months of opening the account. This card offers some mouthwatering rewards like $50 annual ultimate rewards hotel credit, 3X points on some streaming services, dining, and online grocery purchases(not including Walmart and Target), 2X points on travel purchases, and 1X on other purchases. With this card, you are entitled to no foreign transaction fees when you make purchases outside the United States, saving you 3% of the fees that some cards may charge.
3. Chase Freedom Flex
The Chase Freedom Flex offers a 5% cash back reward up to $1,500 in categories requiring activation. This card, which charges no annual fee, offers 3% cash back on drugstores and dining, 1% cash back on regular purchases, and 5$ cashback for travel purchases via Chase Ultimate Rewards. New users will get a $200 bonus when they spend up to $500 on purchases within the first three months of opening their accounts, alongside earning a 5% cash back on grocery and gas purchases. Some benefits to enjoy with this card include cell phone protection, travel benefits like trip cancellation, and secondary auto rental collision damage coverage.
4. Bank of America Customized Cash Rewards Credit Card
With this card, you will earn 3% cash back on the eligible category of your choice and 2% cash back at wholesale clubs and grocery stores, with unlimited 1% on regular purchases. New users receive a juicy offer of $200 when they make a minimum of $1000 in purchases within the first 3 months of opening their account.
5. Southwest Rapid Reward Priority Credit Card
The Southwest Rapid Reward Priority Credit Card is known to offer generous bonuses, including no expiration dates, black-out periods, cancellation fees, etc. You get 3 points per dollar on Southwest purchases, 2 points per dollar on commuting, internet, phone services, and Rapid Rewards hotel and car rental purchases. New users earn a huge 50,000 bonus points when they spend a minimum of $ 1,000 on purchases within the first 90 days of opening their accounts.
Tips for Responsible Credit Card Usage for Holiday Shopping
The holiday season is notable for having lots of shopping days. To make the best of your credit card, here are some tips to consider when shopping.
Build Your Credit
Ensure you use your credit cards consistently and pay off your bills each month. Pay more attention to how much you charge so that you can offset the balance for maximum boost.
Don’t Use a Debit Card Online
Avoid using a debit card because they are mostly linked to your checking account, and it can be hard to recoup your money in the event of a theft. Rather, use a credit card to make online purchases because most offer theft-protection guarantees.
Maximize Rewards Points or Cash Back
Watch out for card rewards points on travel, gift cards, etc, because the holiday season offers more cash back or rewards points than any time of the year. Some cards will give you bonus points after your first purchase or when you reach a particular purchase amount. Hence, getting a new credit card before the holiday season is in full swing would be smart.
Work on a Budget
Before the holidays begin, create a budget to allow you to know how much you can spend to avoid credit card debt. Ensure you include the vital expenses like entertainment, food, gifts, and travel expenses.
Selecting the best credit cards to earn points during the holidays is a wise decision that can make your festive experiences more worthwhile. While you leverage cash back or rewards points to meet your needs during the holiday season, prioritize responsible credit card usage. Draw up a budget to avoid overspending and make well-informed decisions with your holiday credit card to prevent financial strain in the new year.