While the holidays can be fun, they can also cause financial stress and stress for some people as holiday shopping puts a strain on the budget.
Luckily, the TPG team can help you maximize your credit card rewards and avoid debt this holiday season. Here are five tips to help you shop like a pro and earn rewards.
Make a plan and budget
First, make a holiday shopping plan and create an overall spending budget. Who do you shop for? How much do you plan to spend on gifts? What other expenses should you include in your vacation budget?
These are great questions to ask to help you set expectations and prevent impulse purchases that can lead to overspending.
Spreadsheets are a great way to track spending and budget. You just plug your budget into a pre-made template or write it down on paper. If you already know what you plan to buy, insert a link to the sales page so you know how much it will cost.
As you adjust and finalize your budget, remember to account for the additional expenses you’ll incur from additional gatherings, such as larger groceries and catering expenses.
Take advantage of credit card offers and statement points
One of the biggest benefits of rewards cards is that they often come with additional perks to help you save money.
For example, American Express Platinum Card® Comes with $50 in Saks Fifth Avenue statement credit that you can use half the year (up to $100 in statement credit per year; terms apply; registration required). This is a great perk to use on more expensive, luxury gifts.
Or, if you fly a lot in your life, you can use your credit card’s Global Entry/TSA PreCheck points to pay the application fee of up to $120.
Reward your inbox with the TPG daily newsletter
Join over 700,000 readers and get breaking news, in-depth guides and exclusive offers from TPG experts
Amex and Chase often offer great deals on a variety of credit cards to help you save money when shopping at popular retailers. TPG editors have previously received offers from American Express, such as Delta SkyMiles® Reserve American Express Card Retailers like Dyson, Ugg and Urban Outfitters.
Related: Everything you need to know about credit card merchant offers
Don’t ignore shopping portals
This time of year, we talk a lot about shopping portals. This is because skipping them is essentially leaving money on the table.
By doing your online holiday shopping through portals, you can earn reward points or cash back at a host of online retailers. Most major U.S. airlines have shopping portals that can help you earn extra miles on every qualifying purchase, or you can use third-party portals like Rakuten to earn cash back or Amex Membership Rewards or Bilt Rewards points.
We recommend using a shopping portal aggregator like Cashback Monitor to find the best portal for every online purchase. This way, you don’t have to filter each portal’s offers individually.
If you’re a Rakuten user, you can conveniently download a Chrome extension that notifies you while you’re browsing if there are cash back offers (or points back offers, if your account is set up to earn Membership Rewards points) that you can activate.
Use a cash back credit card
We’re big fans of points and miles at The Points Guy, and for good reason. We view points and miles as an investment that can save you money on future travel purchases. However, if you want your rewards to be paid out more immediately to save on non-travel expenses during your vacation, a cash back card is your best option.
Flat rate cashback cards e.g. Citi Double Cash® Card (see Rates & Fees) is an easy way to earn rewards no matter where you shop, as it offers 1% cash back when you make a purchase and another 1% cash back when you pay your bill. You can then use these rewards as statement credits to offset the costs of your bills.
this Chasing Freedom® (See Rates & Fees) is another great option, earning at least 1.5% back on every purchase.
Related: Best Cash Back Credit Cards
Take advantage of financing options
While carrying a balance is never the best option, if you manage it correctly, you can still fund larger purchases over time without paying exorbitant interest. Many rewards credit cards offer a 0% introductory APR on new purchases.
If you plan to pay off your holiday shopping before the end of the introductory period, one of these allows you to fund your spending without paying any interest.
Another option is to use one of the financing options offered by some credit card issuers. For purchases over $100, both Amex and Chase have solid financing options. With each plan, you can choose a fixed payment plan that includes a fixed monthly fee instead of traditional interest charges.
You will almost always save money using these programs compared to paying interest over time.
Related: My Chase Plan vs. Amex’s Pay It® Plan It®
bottom line
Overspending on a credit card is never a good idea, but that doesn’t mean you should give up on using a credit card to maximize your earnings and rewards potential as you cross items off your holiday shopping list.
By setting a budget, using the right card for your purchases, and taking advantage of card offers and shopping offers, you can focus on enjoying the holidays instead of worrying about debt in the new year.
RELATED: The best cards for holiday shopping
