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According to the National Retail Federation, U.S. consumers are predicted to spend an average of $902 per person during the winter holidays. This is higher than any other year previously recorded by the federation.
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Whether you spend the average amount or are naturally more — or less — money-conscious, there are ways to save. Many credit cards offer perks or bonuses that can help you score discounts or great deals while holiday shopping.
Here are 10 tips for using your credit card perks or rewards program to maximize your holiday shopping in 2024.
Look Into Card-Linked Offers
“Look into your credit card’s linked offers, also known as card-linked offers, to start accruing points you can use for holiday shopping,” said Kelli Hobbs, a credit rewards expert and vice president of business development (U.S.) at Valuedynamix. “These are card- and potentially even cardholder-specific offers that give people the ability to earn more rewards when shopping with select retailers in-store or online using a preferred credit card.”
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Check Out the Affiliates
If your credit card offers affiliate deals, take advantage of them this holiday season.
“These browser-based offers help cardholders save via online retailers (called ‘online earn stores’) and are available via banking reward programs,” said Hobbs. “When you use your credit card, you can often earn additional rewards for future savings.”
Diversify
Diversification isn’t just for investments. You can apply it to credit cards to maximize rewards and find great deals.
“Building a diverse credit card portfolio can help maximize rewards — using one card with high rewards for groceries, another for gas, and perhaps a travel card for flights and hotels,” said Nate Bacon, head of consumer and small business card at PNC Bank. “If managing multiple cards isn’t practical, look for a card offering a flat-rate reward across all purchases for simplicity and flexibility.”
Look for ‘Hidden’ Perks
Not all perks are immediately obvious or frequently used. Knowing your card’s benefits and how to use them can help you maximize their value.
“Many cards also offer perks you might not be aware of, like cell phone protection that saves on repairs or no foreign transaction fees,” said Bacon. “Regularly reviewing your card benefits can reveal great perks and seasonal promotions that can boost your savings.”
Always Pay Off Your Balance
The average credit card APR is 22.8%. If you use your credit cards for holiday shopping or to earn rewards, make sure to pay off your full balance before interest accrues.
“If you don’t carry a balance, you stand to enjoy a lot of great perks by using a credit card to make a purchase,” said Erika Kullberg, personal finance expert and founder of Erika.com. “First things first though — you have to pay your balance off in full every single month. Doing this is how you will avoid paying interest and fees.”
Look for Exclusive Deals
Sometimes, credit card issuers offer exclusive deals with specific retailers. Knowing about these deals before you shop can help you save money.
“Before doing your holiday shopping, log on to your credit card issuer’s online portal to see what exclusive deals they have waiting for you,” said Kullberg. “If you combine those deals with holiday sales and other savings platforms like Rakuten, you can earn a decent amount of cashback or rewards.”
Leverage Cash Back With Current Discounts or Deals
See if you can combine your card’s cash back offers with in-store discounts.
“Many people overlook how lucrative it can be to stack rewards and cash back offers on everyday purchases — often leaving tons of ‘free’ money on the table,” said Trae Bodge, a retail, smart shopping, and money-saving expert at True Tae.
For example, if you have a rewards card with 5% cash back and the option to pick your own rewards categories, you could use it in conjunction with a retailer’s discounts. If that retailer also has exclusive deals with your card issuer, you could save even more.
“Layering these 5% cash back benefits with in-app offers from brands adds another layer of savings, essentially turning each purchase into ‘cash back on cash back,’” said Bodge. “And to stretch that dollar even further, you can stack these savings on top of any sales retailers are running independently.”
Take Advantage of Extended Warranties
If you plan to buy expensive items like electronics, check if your credit card offers extended warranties.
“Credit cards also come with additional fraud and purchase protections that debit cards and cash don’t give you,” said Kullberg. “Many also provide extended warranties, so in addition to cash back and other rewards, using a credit card when making larger purchases, especially things like large tech purchases, you’re actually saving yourself money in the long term if the item breaks or is defective.”
Redeem Your Rewards for Maximum Value
Not all reward redemption options offer the same value.
“Get acquainted with what rewards you have accumulated,” said Chris Fred, head of credit cards and unsecured lending at TD Bank. “Often these rewards are more valuable than you might think. For example, typically 20,000 points is worth $200 in cashback or a gift card. You can use these rewards to offset the higher-than-usual spending that occurs during the holidays.”
Compare redemption options as well.
Get the Welcome Offer
If you have good credit and are comfortable opening a new account, consider applying for a credit card with a strong welcome offer.
“Many banks offer sign-on bonuses for new accounts tied to reaching a certain threshold of spend,” said Fred. “Since spending is often higher during the holiday season, you are more likely to reach the milestone and receive the acquisition incentive.”
For example, the Wells Fargo Active Cash Card offers a $200 welcome bonus when you spend $500 in the first three months.
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This article originally appeared on GOBankingRates.com: 10 Tips for Using Credit Card Perks To Make the Most of Holiday Shopping
