The holidays bring many things -- good food, family gatherings and for many, higher spending. Luckily, the right credit card can offer significant savings.Â
As a credit card expert with years of experience both using and teaching people about redeeming rewards and earning discounts on new purchases, credit cards are a key part of my holiday shopping strategy. Here are my favorite tips for how to save on your holiday spending and the two cards I'd recommend using this season.
How to use your credit card to save on gift buying
The first step is making sure you're armed with a credit card that offers rewards for the purchases you're making. Once that's set, look into the extra savings and perks the card may offer.
Activate bonus offers
If you have a card that offers rotating bonus categories, like the Discover it® Cash Back* or the Chase Freedom Flex®*, make sure to activate your offers. It only takes a few seconds and, with the Freedom Flex at least, you'll receive the bonus for previous purchases you've already made that quarter.Â
With programs like Amex Offers and Chase Offers, you'll have to opt-in ahead of time in order to receive the bonus rewards.Â
Remember your cardholder benefits
When buying gifts, especially electronics, look for credit cards that offer benefits like extended warranty coverage and an accidental theft or damage policy. These protections can help insure your new purchases and have you reimbursed for the cost in certain circumstances.
Choose the right redemption method
The holidays are a good time to cash out your rewards in order to offset your spending. Just be careful to redeem your rewards for the most valuable options. For example, it's much better to redeem reward points for 1 cent each towards cash back, rather than 0.8 cents towards purchases from Amazon.com or another retailer.Â
How to avoid overspending on holiday gifts
It's easy to get a little bit too into the holiday spirit and overspend on gifts. To avoid starting the new year in debt, set a realistic budget for your gifts and stick to it. And remember, buying well-researched, thoughtful gifts that show you know the recipient will likely mean more than an expensive, but impersonal choice.
My favorite credit cards for holiday shopping
When looking for cash back rewards over the holidays, the Discover it Cash Back is ideal. It offers 5% cash back on up to $1,500 spent quarterly, then 1%. Discover will also essentially double the rewards you earn at the end of your first year with the card, making it a standout choice if you're interested in a new credit card.
The Discover it Cash Back's current rotating rewards covers purchases at Target and Amazon.com, two great places for holiday shopping. And if you're worried about interest charges, the card features an introductory purchase APR.Â
An intro purchase APR lets you avoid interest accruing on your card balance for a set number of months, meaning you can pay off a purchase without needing to pay interest.
As someone who loves to eat and travel, the American Express® Gold Card is my go-to card for holiday shopping.Â
The American Express Gold Card is great for traveling food enthusiasts.Â
It earns 4x points at restaurants and at U.S. supermarkets, and those rewards can be transferred to airline miles or hotel points. I can also use the valuable Amex Offers to earn bonus rewards on purchases from numerous popular merchants.
*All information about the Discover it Cash Back and the Chase Freedom Flex has been collected independently by CNET and has not been reviewed by the issuer.
