The holiday season is here and you may be wondering how to make the most of your spending. Whether you are buying gifts, booking travel, or treating yourself, you can save money and earn rewards with the best credit cards for holiday purchases.
In this blog post, we will review some of the best credit cards for holiday purchases in different categories, such as cash back, travel, low interest, and more. We will also share some tips on how to use your credit cards wisely and avoid debt during the holidays.
Cash back credit cards
Best Credit Cards for Holiday purchases with cash back are a great option because they give you a percentage of your spending back as a reward. You can use the cash back to pay off your balance, save for future purchases, or even donate to a charity of your choice.
Some of the best cash back credit cards for holiday purchases are:
Chase Freedom Flex:
- This card offers 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate, 5% cash back on travel booked through Chase Ultimate Rewards, 3% cash back on dining and drugstore purchases, and 1% cash back on everything else. Plus, you can earn a $200 bonus after spending $500 in the first three months. There is no annual fee and you get 0% APR for the first 15 months on purchases.
Citi Double Cash Card:
- This card offers 2% cash back on every purchase: 1% when you buy and 1% when you pay. There is no limit on how much cash back you can earn and no annual fee. You also get 0% APR for the first 18 months on balance transfers.
Capital One Quicksilver Cash Rewards Credit Card:
- This card offers 1.5% cash back on every purchase with no limit or expiration. You can also earn a $200 bonus after spending $500 in the first three months. There is no annual fee and you get 0% APR for the first 15 months on purchases.
| Credit Card | Chase Freedom Flex | Citi Double Cash | Capital One Quicksilver |
|---|---|---|---|
| Earning Rates | 5% cash back on bonus categories (up to $1,500/quarter when activated)<br>5% cash back on Chase Ultimate Rewards travel<br>3% cash back on dining and drugstore purchases<br>1% cash back on everything else | 2% cash back on every purchase (1% when you buy, 1% when you pay) | 1.5% cash back on every purchase |
| Sign-up Bonus | $200 bonus after spending $500 in the first three months | None | $200 bonus after spending $500 in the first three months |
| Annual Fee | None | None | None |
| Intro APR | 0% APR for the first 15 months on purchases | 0% APR for the first 18 months on balance transfers | 0% APR for the first 15 months on purchases |
| Additional Benefits | Rotating 5% cash back categories each quarter | No limit on cash back earnings | No limit on cash back earnings |
Travel credit cards
Best Credit Cards for Holiday purchases in Travel credit cards category are another great option for holiday purchases because they let you earn points or miles that you can redeem for flights, hotels, car rentals, and more. You can also enjoy perks like free checked bags, airport lounge access, travel insurance, and more.
Some of the best travel credit cards for holiday purchases are:
Chase Sapphire Preferred Card:
- This card offers 2x points on travel and dining and 1x point on everything else. You can also earn a whopping 100,000 bonus points after spending $4,000 in the first three months. That’s worth $1,250 in travel when you redeem through Chase Ultimate Rewards. There is a $95 annual fee and you get 25% more value when you redeem your points for travel.
American Express Gold Card:
- This card offers 4x points on dining and groceries (up to $25,000 per year), 3x points on flights booked directly with airlines or through Amex Travel, and 1x point on everything else. You can also earn a $250 statement credit after spending $4,000 in the first six months. There is a $250 annual fee and you get up to $120 in dining credits and up to $100 in airline fee credits per year.
Capital One Venture Rewards Credit Card:
- This card offers 2x miles on every purchase with no limit or expiration. You can also earn a 60,000 bonus miles after spending $3,000 in the first three months. There is a $95 annual fee and you get up to $100 in credit for Global Entry or TSA PreCheck fees.
| Credit Card | Chase Sapphire Preferred | American Express Gold | Capital One Venture Rewards |
|---|---|---|---|
| Earning Rates | 2x points on travel and dining<br>1x point on everything else | 4x points on dining and groceries (up to $25,000/yr)<br>3x points on flights (direct or Amex Travel)<br>1x point on everything else | 2x miles on every purchase |
| Sign-up Bonus | 100,000 bonus points after spending $4,000 in the first three months | $250 statement credit after spending $4,000 in the first six months | 60,000 bonus miles after spending $3,000 in the first three months |
| Redemption Value | $1,250 in travel through Chase Ultimate Rewards | Variable; statement credit, travel, or other options | Variable; redeem for travel or statement credit |
| Annual Fee | $95 | $250 | $95 |
| Additional Credits/Perks | 25% more value when redeeming for travel | Up to $120 in dining credits<br>Up to $100 in airline fee credits | Up to $100 in credit for Global Entry or TSA PreCheck fees |
Best Credit Cards for Holiday purchases with lowest interests
Low interest credit cards are a good option for holiday purchases if you plan to carry a balance and want to save on interest charges. These cards offer low or zero interest rates for a certain period of time, which can help you pay off your debt faster and cheaper.
Some of the best low interest credit cards for holiday purchases are:
- U.S. Bank Visa Platinum Card: This card offers 0% APR for the first 20 billing cycles on purchases and balance transfers. There is no annual fee and you get free access to your TransUnion credit score.
- Wells Fargo Platinum Card: This card offers 0% APR for the first 18 months on purchases and qualifying balance transfers. There is no annual fee and you get free access to your FICO credit score.
- Bank of America Customized Cash Rewards Credit Card: This card offers 0% APR for the first 15 billing cycles on purchases and balance transfers made within the first 60 days. There is no annual fee and you get 3% cash back on a category of your choice (gas, online shopping, dining, travel, drugstores, or home improvement/furnishings), 2% cash back on groceries and wholesale clubs (up to $2,500 in combined purchases each quarter), and 1% cash back on everything else.
Tips on using Best Credit Cards for Holiday purchases
Using credit cards for holiday purchases can be a smart way to save money and earn rewards, but you need to be careful and responsible. Here are some tips on how to use credit cards for holiday purchases wisely:
- Set a budget and stick to it. Don’t spend more than you can afford to pay back and avoid impulse purchases.
- Compare credit cards and choose the best one for your needs. Consider the rewards, fees, interest rates, and perks of each card and pick the one that suits your spending habits and goals.
- Pay your balance in full and on time every month. This will help you avoid interest charges, late fees, and damage to your credit score.
- Use your rewards wisely. Redeem your cash back, points, or miles for things that you need or want, such as travel, gift cards, or statement credits. Don’t let your rewards expire or go to waste.
- Protect your credit card information. Be careful when shopping online and use secure websites and networks. Check your statements regularly and report any suspicious or fraudulent charges.
Links to Best Credit Cards for Holiday purchases
1. Sapphire Cards:
2. American Express Gold Card:
3. Capital One Venture Rewards Credit Card:
4. Cards from Chase Bank:
5. Cards from Citi Bank:
6. Cards from Capital:
The holiday season is a great time to use credit cards for your purchases, as long as you do it smartly and responsibly. You can save money and earn rewards with the best credit cards for holiday purchases in different categories, such as cash back, travel, low interest, and more. Just remember to set a budget, compare credit cards, pay your balance in full and on time, use your rewards wisely, and protect your credit card information. Happy holidays!
