Deloitte’s latest survey predicts that the average person is gearing up to spend $1,778 on holiday shopping this year. The survey also highlights that people across different income levels are tightening their belts, pointing towards ongoing inflationary pressures.
When hunting for bargains, don’t forget that using credit cards strategically can amp up your rewards, potentially leading to significant savings. Moreover, making the most of your credit card is simpler than you might think. A couple of smart tactics can ease your holiday budget substantially.
Here are six practical tips to supercharge your credit card rewards this holiday season.
### 1. Open a New Credit Card
Many credit cards entice new users with sign-up bonuses in the form of points or cash. However, to snag these offers, you’ll need to spend a specified amount within a certain timeframe. The holiday season might be the perfect opportunity to hit that spending target and claim a sizable bonus.
If your new credit card offers cash back, it could really enhance your holiday spending budget. Some popular cards even give newcomers a $200 bonus after they meet the required spending. If travel rewards are more your thing, these bonuses can cut future travel expenses down. Some cards even give you a sign-up bonus right away, without requiring any initial spending. Plus, during the holiday season, the welcome offers on these cards tend to be more generous.
### 2. Make the Most of Online Shopping Portals
According to Deloitte’s research, 71% of shoppers prefer buying online for the holidays. If you’re part of this group, take advantage of shopping portals, also sometimes called bonus malls.
Shopping portals are websites that offer cashback, points, or miles — in addition to your credit card rewards — for purchases made through their links. These portals earn commissions from retailers and pass a portion of it on to shoppers when they purchase through the linked portal.
You’ll find many airlines, hotels, and major credit card providers have their own shopping portals. Just log in, locate your desired retailer, and shop through the portal’s link. Checkout like normal on the retailer’s site, and after a little bit of extra clicking, the bonus rewards will automatically be added to your account once the purchase is verified. This process can take anywhere from a few weeks to slightly longer.
### 3. Leverage Cash-Back Apps for Store Shopping
Just like online shopping portals, mobile apps such as Rakuten, Ibotta, and Swagbucks offer extra points or cashback for physical store purchases.
These are quite straightforward to use. Download the app, add your credit card details, and look for in-store offers. When you’re ready to pay at the store, use the card linked in the app. The app tracks your spending, and rewards generally show up in your account in a few weeks. However, note that most apps require a minimum amount before you can cash out your rewards.
### 4. Utilize Card-Linked Offers
Many credit card providers also offer discounts for purchases made at specific retailers through programs like:
– BankAmeriDeals from Bank of America.
– Cash-back deals from U.S. Bank.
– My Wells Fargo Deals from Wells Fargo.
These digital coupons require you to meet certain spending criteria and have expiration dates. You receive discounts either as statement credits or bonus points. You just need to log into your credit card account, check the deals section, and activate any offers you’re interested in. Feel free to add these offers to your card even if you’re not sure you’ll shop at those retailers.
To maximize rewards, you can combine (“stack”) card-linked offers with cash-back sites such as Rakuten and TopCashBack. Websites like Cashback Monitor can guide you to the best discounts available from over 15,000 stores.
### 5. Purchase Gift Cards
If gifting holiday gift cards is on your list, remember you may earn additional rewards by buying them at specific locations with your credit card.
For example, purchasing a gift card directly from a clothing store will generally earn you the standard reward rate. But buying the same gift card from a grocery store might earn you a higher reward rate. Many credit cards offer 3% to 6% cashback on grocery store purchases.
But be cautious — purchasing a large number of gift cards can trigger suspicion with your card issuer, and they may retract your bonus points, especially if you’re working towards a sign-up bonus.
### 6. Dine Out at Participating Restaurants
You’ll earn extra points and miles when you dine at certain participating restaurants. Most major hotel and airline loyalty programs offer a free dining rewards network you can join.
Visit your preferred hotel or airline dining rewards site, enter your ZIP code to find nearby participating restaurants, and register your credit card. Use this card at the restaurant to earn bonus rewards. These programs also commonly offer extra points for your first dining experience and additional rewards for leaving reviews.
Since these programs are operated by the same company, you can typically only earn extra rewards from one airline or hotel dining program per credit card. Additionally, if you register a new card in the dining program, your old card will be automatically removed.
