Best Credit Cards for the Holidays

By Miranda Marquit. Last updated 22 April 2014. 4 comments

With the holidays coming up fast, now is a good time to get a jump on your shopping. It’s easier on your budget when you plan out your holiday spending over a couple of months rather than cramming it all in during December. If you want to make your holiday spending even more effective, consider using a well-chosen credit card to make your purchases. (See also: Early Holiday Shopping: Why I Finish by Thanksgiving)

A card that offers an introductory purchase rate of 0% can make your spending more manageable. Even better? Cards with rewards programs and/or huge signing bonuses. Not only can you complete your holiday shopping, but you can also reduce the overall impact to your budget with the help of cash back and rewards points.

Most of us spend more during this time of year, and it makes sense to use the holiday burst of spending wisely. Each of the cards noted below will help you do just that.

Best Ongoing Cash Back Rewards

Blue Cash Preferred® Card from American Express

Click here to apply nowIf you are looking for a credit card with a great ongoing cash back rewards program, the Blue Cash Preferred from American Express (review here) is your choice. The rewards break down as follows:

  • Get 100 Reward Dollars, redeemable for a $100 statement credit, after you make $1,000 in purchases with your new Card in the first three months.
  • Plus, get one year of Amazon Prime after you sign up for a new membership with your Card and meet the spending requirement in the same time period.
  • As an Amazon Prime member, you get unlimited Free Two-Day Shipping on millions of items.
  • Earn Cash Back: 6% US supermarkets up to $6,000 per year in purchases, 3% US gas stations & select US dept stores, 1% other purchases. Terms and limitations apply.
  • Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit.
  • 0% intro APR on purchases and balance transfers for 15 months, then a variable rate, currently 12.99% to 21.99%, based on your creditworthiness and other factors.
  • Terms and Restrictions Apply.

This is one of the most consistently generous cash back rewards programs available. The program doesn’t use rotating categories, so it’s perfect for the holiday host or hostess looking to buy food items at the grocery store and helpful for those who do their gift shopping at department stores. The $75 annual fee is easy to overcome for the savvy shopper. If you spend just $100 a month at the supermarket, you'll break even.

Note: There is also the regular, non-Preferred version called the Blue Cash Everyday Card® from American Express. The "Everyday" version has no annual fee, but cash back percentages are halved across the board.

Also, the Blue Cash Preferred comes with a signup bonus of $100 Reward Dollars if you spend $1,000 in the first three months. You can have American Express apply this bonus directly to your balance (as a “statement credit”) to help offset some of your holiday spending on the card.

Best 0% APR on Purchases

Citi® Dividend Platinum Select® Visa® Card

Click here to apply now If you think that you need a little extra time to pay off your holiday expenses, a card with a long introductory period for purchases can help. The Citi Dividend Platinum Select Visa has a 0% APR intro period of 12 months. After that, the APR will be 12.99%-22.99% variable based on your creditworthiness. Hopefully, you plan to pay off your purchases much sooner than that, but this card provides you with a little interest-free breathing room.

On top of that, you can earn a $100 signing bonus if you spend $500 in purchases in the first three months.

Rotating categories throughout the year give you 5% cash back — right now, on purchases at The Home Depot®, home furnishing and home and garden stores from 4/1/14 through 6/30/14. The rest of your purchases earn 1% cash back. You can earn up to $300 per calendar year, excluding the $100 cash back with this offer.

Click here to apply for the Citi® Dividend Platinum Select® Visa® Card

Best Travel Rewards

Capital One® Venture® Rewards Credit Card

Click here to apply now Do you do a lot of traveling for the holidays? If you are looking for a way to build up your travel rewards quickly, you can use the holidays as a way to spur you forward. Use the Capital One Venture Rewards card to book your travel now and to make your holiday purchases, and you could fly free in no time.

You receive unlimited 2X miles on every purchase, every day, and you earn a one-time bonus of 20,000 miles once you spend $2,000 on purchases within the first 3 months, equal to $200 in travel. You can travel when you want — there are no blackout dates. Plus, there are no foreign transaction fees (perfect for holiday jaunts abroad), and the annual fee of $59 is waived for the first year.

By the next holiday season, you could be using the travel rewards from this card for totally free flights to visit family.

Click here to apply for the Capital One® Venture® Rewards Credit Card

Best 0% Balance Transfer

Chase Slate

The Chase Slate is one of the only cards with no balance transfer fee and 15 months of 0% APR on balance transfers, if you transfer the balance within sixty days of opening the card. (Most cards charge a 3% fee on balance transfers, which can be a hefty amount if you're transferring a big balance.) The 15 month 0% APR also applies to purchases, and there is no annual fee.

If you are trying to get your debt under control and paid down, this card can help. You might even want to wait until after the holidays are over and transfer one of your higher interest balances to this card and avoid interest charges for carrying a balance.

The best balance transfer credit cards

Savvy Credit Card Use During the Holidays

Make sure that you are smart about your credit card use during the holidays. Even though there are some great terms associated with many of these credit cards, you don’t want to fall into the debt trap.

Do Your Best Only to Spend Money That You Already Have

Rewards credit cards are most effective when you make planned purchases, and then pay off the balance each month. That way, you earn the rewards, but you don’t end up having their value eroded by interest charges.

If You're Going to Carry a Balance, Choose Your Card Wisely

If you think that you will need to carry a balance as a result of your holiday shopping, look for a rewards card with a 0% APR on purchases for a few months. Make a plan to pay off the balance before the end of the intro period. In any case, it’s best if you avoid carrying a balance for more than three or four months. Choose a card with an intro period, and you can still earn rewards without paying interest.

With the right plan, you can take advantage of credit cards for the holidays, earning bonuses and rewards that can help you offset your spending, saving you money on purchases now and interest later.

Disclaimer: This content is not provided or commissioned by the credit card issuer. Opinions expressed here are author’s alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through the credit card issuer Affiliate Program.

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Guest's picture

Great article!! Especially now since it is close to the holidays, this was a perfect read. It’s good to know of the some of the best credit cards for the holidays.

Guest's picture
Guest

I'd suggest to anyone to skip JP Morgan/Chase cards. Unfortunately, I have one. The number escaped into the wild, from a disreputable third party company. I phoned their customer service to get the card stopped and the number changed. I was told that they won't change the number or cancel the card. Their service people claim their systems are down. The service people have said the same thing for three straight days. Their service people also say that there is fraud protection. However, I have read the terms of service and as I understand those terms, the terms say that JPM/Chase can use binding arbitration to force the payment of charges, regardless of whether or not the charges are fraudulent. I now believe that something is going on, possibly nefarious. Please remember, these people recently lost $2,000,000,000.00, they have every reason to find "other" sources of revenue. I'm looking for another card provider. I urge you to find a different provider also.

Guest's picture

After reading the post that was entirely dedicated to the Chase Sapphire Preferred Card, it definitely seems like a good deal, but especially if you're looking for a card just to make it through gift-buying season. As a very recent post-grad, I'm lucky that I'm not expected to get anyone too expensive this Christmas season.

Guest's picture
Credit Card Rewards Nerd

The Discover More card is also paying 5% cash back on all Internet shopping as well as department store shopping for up to $1500 in spending from October through December.

You might also be interested in the rewards calculator at http://www.creditcardtuneup.com/ . You enter your average monthly spending in categories like restaurants, groceries, gas, airfare, hotels, etc. and it calculates the single best card as well as the best combinations of cards for your spending profile.