I know most of you are probably high on spooky season and all things Halloween right now, but I’ve already got mistletoe on my mind. It’s not just because Amazon Prime Big Deal Days are just around the corner. To get the most out of Christmas, I start putting my credit cards to work now.
My strategy for affording gifts is equal parts planning and pivoting toward savvy ways to spend and save as the holiday season approaches. Here’s how I use my Amazon Prime Visa to get a little more stretch out of my holiday dollars long before Black Friday rolls around.
How I use the Prime Visa to maximize holiday savings (and avoid debt)
I don't use any credit card to spend beyond our means, ensuring we always have the funds in the bank account to pay the bill when it comes due. Leveraging the way we spend is also a financially savvy move that helps us save on holiday festivities.
Step 1: Make a list and budget early
Deciding how we’ll spend our holiday dollars starts early, preferably at the end of summer. There are three reasons for this.Â
First is to make sure any big-ticket items like electronics or expensive toys are on my shopping list for October's Prime Day. Second, I can draft a budget to follow through the entire season. And finally, having plenty of time means I can rack up points by choosing slower shipping options with better built-in rewards.
Step 2: Start a holiday sinking fund
Consumers expected to spend an average of $875 in 2023 on holiday gifts, decorations and food, according to the National Retail Federation. Coming up with that kind of dough requires some planning, So by the end of summer, I start a holiday sinking fund, squirreling away an extra $250 every month into our savings to cushion our Christmas spending.
If we're a little tight, I’ll consider taking on some extra work or a side hustle to find some wiggle room in our family’s budget.
Step 3: Put it all on the card
My Prime Visa sees a lot of action generally, but especially as the holiday season approaches. To start racking up points, I pivot midsummer to using my card for every purchase, including monthly expenses like utilities, gas and groceries.
By the time Black Friday rolls around, I have plenty of Amazon reward points to afford hot toys or trendy gifts. Depending on how early I switch to using the Prime Visa for purchases, I can start the shopping season with hundreds of dollars in Amazon points to spend.
Tips for using the Prime Visa to earn rewards in time for the holidays
While you do need to pay a little extra to be a Prime member ($14.99/month or $139/year), membership comes with plenty of benefits that go beyond free shipping on Amazon’s platform. Here are a few ways you can get the most out of Amazon’s rewards tailored specifically for Prime Visa cardholders.Â
Lean into that new cardholder bonus
You’ll get an $150 Amazon gift card instantly upon approval. That’s essentially extra cash in your pocket.
Shop at Amazon, Amazon Fresh or Whole Foods
If you’re a frequent Amazon or Whole Foods shopper, the Prime Visa is a no-brainer because of the points potential. You’ll earn unlimited 5% back at Amazon.com, Amazon Fresh and Whole Foods Market, as well as Chase Travel purchases. Plus some select Amazon purchases offer as much as 10% back for certain products or shipping options.
Refer a friend
If you already have an Amazon Prime Visa and aren’t eligible for the new cardholder bonus, don’t despair. You’ll still earn a $50 Amazon gift card for each person you refer for an Amazon Visa or Amazon Prime Visa, up to 10 people or $500 per year.Â
Use it instead of other cardsÂ
In addition to earning points on Amazon and at Whole Foods, you can earn 2% back by using your Amazon Prime Visa at a variety of locations including at restaurants and gas stations and for local transit and commuting (including rideshares). Other purchases that don’t fall into these categories can still earn 1% back when you use the card.Â
Yes, other cards can earn more rewards, but I find the Prime Visa is an easy way to earn points I use specifically for holiday shopping.
Can you spend to save for the holiday season? It depends.
My strategy of leaning into credit cards to afford Christmas only works because I spend within my means. If getting the Prime Visa will entice you to shop until you drop, don’t yield to temptation without setting firm limits and having a holiday shopping list in hand.
The key to my strategy is to stick to your budget and not to be lured into buying things just because they’re on sale. Be like Santa: make a list and stick to it.
