5 Ways to Use Only Credit Card Rewards To Shop This Holiday Season
Written by
Ashley Donohoe
Edited by
Maria Concepcion
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
The recent Deloitte holiday survey found that the average American will spend $1,652 on holiday purchases this year. If this makes you concerned about your budget, you should consider using credit card points, miles or rewards dollars to cover or at least reduce your holiday shopping expenses fully.
This strategy works best if you are open to being frugal and already have many rewards to redeem. However, there’s still time to earn rewards for bills and other everyday expenses. Using the right card for specific purchases, taking advantage of bonus categories and checking for special offers will help you maximize your earnings.
Here are five ways you can use only those rewards to shop this holiday season.
1. Get Free Gift Cards
If you check your credit card’s rewards portal, you’ll likely find dozens of gift cards available, often starting with a value of $25. Common options include cards for restaurants, travel, retail stores and entertainment. Plus, you’ll likely find more flexible prepaid cards from the card issuer.
You can use your rewards toward physical or digital gift cards you can give others. Another option is getting gift cards for yourself, which you can use to buy what you need.
2. Use Rewards Directly at the Checkout
Your credit card issuer might let you directly use your rewards points online at participating retailers. For example, American Express lets you redeem points at Amazon, PayPal, Best Buy, Saks Fifth Avenue and more. Discover also supports PayPal and Amazon.
If you have a store card, you might instead earn digital rewards certificates after spending a certain amount. You can redeem these at the checkout online or locally to help cover your holiday purchase.
3. Order Free Merchandise
To potentially get free stuff to give your loved ones, check your credit card’s website or app for merchandise redemption options. While the selection depends on your credit card company, examples could include electronics, clothing and accessories, sports items, collectibles, kitchen gadgets and pet toys.
If you use this option, be prepared to get less value for your points or miles since the redemption requirements often run high. You’ll also want to account for the potential shipping time so the gifts will arrive before your holiday gatherings.
4. Use Your Rewards Toward Holiday Trips
Credit card rewards can cover holiday travel costs and hotel stays as well. First, you can check about booking your trip through your card company’s travel portal. Another option is transferring your rewards to a travel partner and booking through its website.
Keep in mind that flexibility is important. Blackout dates may apply, and you should book earlier if availability is limited. Remember to take advantage of the additional travel perks your card may offer, including Uber credits, free room upgrades and complimentary travel insurance.
5. Get Statement Credits or Cash
If you value flexibility, consider using your rewards toward a statement credit to cover holiday shopping charges. Your creditor may also have an option for depositing the cash into a linked bank account.
The credit bureau Experian cautions that the statement credit won’t affect your minimum payment amount. Note that you’ll also likely get less value for your rewards if you’re redeeming points or miles. This makes it important to consider alternatives such as gift cards and travel redemption first.
More From GOBankingRates
