Best Credit Card Strategy for Holiday Shopping
Earn the most on gift spending
Concentrate holiday spending on cards that reward where you shop: a strong flat-rate card for everything, plus category cards for dining and online shopping. Shopping portals (your issuer rewards mall) can stack extra points at major retailers, and the holidays are a great time to clear a new card welcome-bonus minimum spend with spending you were already doing.
Protect the gifts
Holiday purchases are exactly what card protections are for: purchase protection and extended warranty cover damage, theft, and longer warranties on electronics and gifts, and return protection (on cards that have it) helps with strict retailers. Paying by card also gives you dispute rights if an order never arrives.
Finance big gifts the smart way
For a large gift you cannot pay off immediately, a 0 percent intro APR card beats carrying a balance at a normal APR, as long as you clear it before the promo ends. The one rule for the season: do not let holiday spending become a balance you carry into the new year, since interest erases any rewards.
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