3 Ways You Can Save Money by Using Your Credit Card Perks for the Holidays

Hispanolistic / Getty Images

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

With the holidays just around the corner, it’s almost time to start making all your plans. However, with the cost of living higher today than it was a year ago, many Americans will be cautious about how they spend money. This is where your credit card rewards can be useful.

Whether you’re planning to host a large family gathering, travel somewhere warm over the holidays or just shop for your loved ones, your credit card rewards can help you save money this holiday season.

Keep reading as we explore three ways to save money with your credit card perks during the holidays.

Maximize Your Rewards

No matter what your plans include this year, it’s important to maximize your rewards by using the right credit card.

Are you planning to host a large Thanksgiving or Christmas gathering? Then you’ll want to have a credit card that offers generous rewards at grocery stores. For example, the Blue Cash Preferred card from American Express offers 6% cash back at grocery stores for up to $6,000 per year on purchases (then 1%). 

If you’re planning to travel somewhere over the holidays, you’ll want a travel credit card to earn as much as possible on your trip. For example, you could have the Chase Sapphire Preferred card and earn 5x points on all travel booked through Chase Travel. The card will also give you 3x points on all restaurant purchases during your trip.

If you just want a card that rewards you for the Christmas gifts you purchase, consider a cash back card like the Citi Double Cash. You’ll earn 1% cash back on the purchase and then another 1% back once you pay your balance.

Save Money on Your Travel

It’s no secret that winter weather can affect air travel. If you have non-refundable travel plans, missed flights could mean you’re out a significant amount of money. However, using the right credit card can help you avoid this situation.

Travel cards like the Chase Sapphire Preferred provide cardholders with trip cancellation/trip interruption insurance. If your trip is canceled for a covered reason like weather, you can get reimbursed for up to $10,000 per person or $20,000 per trip for non-refundable expenses like tours, hotels, rentals cars, and more.

Another perk of many airline credit cards is the ability to receive free checked bags on your flight. For example, the United Explorer card offers the first checked bag for free for the cardholder and one travel companion. Since checked bags are normally $40, this could help you save $160 on a round-trip flight.

Use Your Rewards for Shopping

You could also use your credit card rewards to reduce your holiday shopping expenses this year. Depending on the cards you have in your wallet, your rewards can be redeemed for statement credits or even gift cards. 

If you choose to redeem for gift cards, these can be given to your friends or family as gifts or you can use them to purchase items that may be on their wish list. 

The Bottom Line

Credit cards can be a great tool to use. They can provide you with valuable travel rewards or cash back. Plus, most have other useful benefits that can help you save money. 

However, when using credit cards, it’s important to be responsible. Not paying your balance at the end of the month can cause you to accrue interest which can lead you to spend more money than you had planned.

Share This Article: