Before you know it Christmas will be here. People will be looking for deals to purchase gifts for loved ones and friends. One way to lessen the pain of all of the gift buying is by having the right credit card to charge the items to. The cards in this post are some of the best credit cards for Christmas shopping.
There is no one size fits all credit card on the market for making Christmas purchases. It couldn’t be that easy. There are many different cards to choose from but where do you start?
What I want to do is give you some of the best options to look at as it comes to spending on a credit card for your Christmas shopping and give you some things to consider when you make that decision.
Features to Consider in Picking the Best Credit Card for Christmas Shopping
Depending on what your goals are for using a credit card when making Christmas purchases will determine what card that you should get.
The goal in the end is to find a card that will give you the most rewards for the spending that you are going to do. This would include during the Christmas season and beyond.
So, let’s take a look at some of the key features that most people look at when choosing a credit card for Christmas purchases.
1. Great Reward Categories
Do you spend a lot on gas, groceries, or eating out? You want to select a card where you can earn a lot of cash or points in categories that you spend a lot in.
2. Cash back
Cash back cards are just that, cards that give you cash back for every purchase that you make. This usually ranges from 1% to 6%. Some cash back cards allow you to earn the same percentage on every purchase on the card. While other cards have categories like gas, groceries, and travel where you can earn more cash back.
3. Travel Rewards
Travel reward cards earn points/miles that can be used to purchase travel. This can usually be done through a credit card travel portal or by transferring points to a transfer partner.
Just like cash back cards, travel rewards cards have bonus categories that you can earn extra points in like travel, dining, and groceries.
4. Sign Up Bonuses
Both cashback and travel cards have sign up bonuses. The travel cards tend to have bigger sign up bonuses but many of them have annual fees while most cash back cards don’t.
Just before Christmas is a great time to get a new credit card, since you are going to be buying gifts which will help you earn the minimum spend for your sign up bonus. This is really helpful for the larger minimum spend on a travel card.
5. Purchase Protections
There are credit cards that come with purchase protections when you use them. Some common protections include return protection, purchase protection, and extended warranties.
Return protection is where you will be credited for a purchase even if the store doesn’t take back the item. Purchase protection covers the cost of the item if it is lost or stolen. Extended warranties are given to items that are purchased with the card. This can range from one to three extra years.
These are the most common factors but you may have something that I didn’t mention that is top of your list like a 0% introductory offer. So, you will have to put those things into the equation when selecting the right card for you.
Best Credit Cards for Christmas Shopping
1. Wells Fargo Active Cash Card
The Wells Fargo Active Cash Card is great while making purchases for Christmas. The card is a straightforward cash back card with no categories that you have to choose each month or quarter. You can know that every purchase that you make with the card is earning the same percentage cash back.
Rewards:
- 2% cash back on all purchases
Bonus: $100 cash rewards after spending $500 in the first 3 months
Annual Fee: $0
A Few Other Perks: There is a 0% introductory offer for 12 months on all purchases and balance transfers put on the card.
2. Chase Freedom Flex
The Chase Freedom Flex is a cash back card that comes with bonus categories that are available throughout the year. The card also comes with rotating quarterly categories that earn 5% cash back. These categories can come in handy when making purchases for Christmas. The card’s points are flexible in that they can be used for cash back or for travel.
Rewards:
- 5% cash back on up to $1,500 in combined quarterly categories. You must activate the offer each quarter
- 5% cash back on travel booked through Ultimate Rewards
- 3% cash back on dining including take out and at drug stores
- 1% cash back on all other purchases
Bonus: Earn $200 after you spend $500 in the first 3 months from account opening.
Annual Fee: $0
A Few Other Perks: 0% introductory offer on all purchases and balance transfers for 15 months. Purchase Protection for 120 days for lost or stolen items up to $500 per claim. Extended Warranty Protection for an extra year per purchase.
3. American Express Blue Cash Preferred Card
The American Express Blue Cash Preferred card is the first card on the list with an annual fee. The first year with the card the annual fee is waived. This card has various bonus categories that are good throughout the year. This is a card to consider if you are going to spend a lot on groceries for the holidays and throughout the year.
Rewards:
- 6% cash back at U.S. supermarkets on the first $6,000 every year and then 1% after that
- 6% cash back on selected streaming services
- 3% cash back at U.S. gas stations and transit including taxis/rideshare, parking, tolls, trains buses and more
Bonus: Earn a $250 statement credit after spending $3,000 in the first 6 months.
Annual Fee: $0 the first year and then $95 per year after that.
Other Perks: 0% introductory interest rate on all purchases for the first year from the account opening. Extended warranty protection for warranties under 5 years. Purchase protection for 90 days from the date of purchase, and return protection for up to $1,000 per calendar year.
4. American Express Blue Cash Everyday Card
This card should not be confused with the Blue Cash Preferred card. The card has no annual fee and different earning categories. If you are someone who does a lot of Christmas shopping online, then this card can be a great fit for you.
Rewards:
- 3% cash back on grocery store purchases on the first $6,000 each year and then 1% after that
- 3% cash back at U.S. gas stations on the first $6,000 each year then 1%
- 3% cash back on the first $6,000 in purchases at U.S. online stores then 1% after that
- 1% cash back on all other purchases
Bonus: No sign up bonus
Annual Fee: $0
Other Perks: You can request a balance transfer within the first 60 days of account opening. Fees do apply to this offer. Purchase protection can help protect covered purchases up to 90 days from the time of purchase on items that are stolen or accidentally damaged.
5. Chase Sapphire Preferred
The Chase Sapphire Preferred card is a good fit for people who are looking for a large sign up bonus for the Christmas season. The bonus can be used as cash or you can use the points to book travel through the Chase travel portal or by transferring the points to one of Chase’s travel partners.
Rewards:
- 5% bonus on travel booked through the Chase travel portal
- 3% bonus on dining, vacation rentals, gas/EV charging, and top streaming services
- 2% bonus on travel booked outside of the Chase travel portal
- 1% bonus on all other purchases
Bonus: 75,000 bonus points after you spend $5,000 in the first 3 months from account opening. The 75,000 points are worth $750 in cash or at least $750 when using them to book travel through the Chase travel portal. The points can even be worth more if transferred and used with an airline or hotel travel partner.
Annual Fee: $95
A Few Other Perks: $100 annual hotel credit, purchase protection protects your purchase for 120 days against damage or theft, and the extended warranty protection adds on an additional year of eligible warranties that are less than 3 years. The card also offers many travel protections and benefits.
The Chase Sapphire Preferred is one of my favorite cards. I have a guide on all of the perks and benefits of the card.
6. Prime Visa
If you do a lot of shopping on Amazon during the year or especially during the holidays, then the Amazon Prime Visa card could be a good choice for you.
Perks:
- 6% cash back when you choose select delivery methods on eligible Amazon.com purchases with an eligible Prime membership
- 5% cash back on Amazon purchases, Whole Food Markets, Amazon Fresh, and Chase Travel with eligible Prime Membership
- 2% cash back at restaurants, gas stations and local transit
- 1% cash back on all other purchases
Bonus: Earn a $150 Amazon gift card immediately upon approval
Annual Fee: $0
A Few Other Perks: Purchase protection, baggage delay insurance, roadside dispatch, and travel accident insurance are a few of the extra perks.
7. Target REDcard Credit Card
This is a great card for someone that is going to do a lot of their Christmas shopping at Target. One nice thing about this card is that you get the discount at the time of your purchase. You don’t have to wait around to get the discount or cashback like many other cards.
Perks:
- 5% discount on all purchases at a Target store or Target.com
- 2% earnings on dining and gas stations
- 1% earnings everywhere else
Bonus: No bonus
Annual Fee: $0
A Few Other Perks: Exclusive offers, gifts and early access to promotions. Free standard shipping and (free two day shipping on qualified items), and 30 extra days to return items.
The Ultimate Holiday Strategy: Timing a New Sign-Up Bonus
Christmastime can be a great time to sign up for a travel credit card to earn a large sign up bonus. Many travel cards have sign up bonuses in the 60,000 to 100,000 point range. You usually have to spend $3,000 to $5,000 to earn the bonus.
Depending on what your budget is for Christmas, you can knock out most if not all of the spend for the bonus. Plus, if you use the sign up bonus towards travel, you can save a lot of money on your next trip.
Final Thoughts
Each one of the credit cards above have advantages and disadvantages to use during Christmas. It doesn’t matter if you choose one of these cards or use a card that you already have for Christmas. It does make sense to earn something back while doing your Christmas shopping.
Another way to stretch your holiday budget is by using a shopping portal. Before buying gifts online, I always check CashBack Monitor to compare the current payout rates across different portals and make sure I’m maximizing my return. I have a full breakdown on how to use the site.
