The Best Credit Cards for Holiday Shopping

The Best Credit Cards for Holiday Shopping
Up-to-date as of: Nov 11, 2011

Santa and his elves are hard at work these days, double checking their lists and trying to make sure that every child who’s been nice this year has a merry holiday season. But times have been tough for a lot of us, including Mr. Claus, and we could all benefit from savings during such an expensive time of the year. Luckily, credit card companies are following in the tradition of retailers offering their best promotions and sales during the holidays. So, as long as credit cards haven’t left lumps of coal in your stocking in the past, you should consider the following list of the Best Credit Cards for Holiday Shopping because they truly have the potential to spread holiday cheer.

There are two groups of credit cards that can help you this holiday season: those that you already have in your wallet and those that you can apply for. You see, not only are there a number of attractive new rewards and 0% interest credit cards currently on the market, but certain credit card companies are also sweetening the deal for existing customers as the holidays roll around.

When it comes to finding the right credit card for which to apply this holiday season, it is important to determine which of the following four primary consumer needs you are trying to address: A) Lowering your holiday spending tab by getting the card with the highest initial rewards bonus; B) Earning the best ongoing rewards in order to benefit throughout the entire year and beyond; C) Performing a balance transfer in order to minimize the cost of existing credit card debt and create some breathing room for holiday shopping; D) Buying time to pay down holiday purchases without interest by opening a 0% credit card. For your convenience, we have listed the best credit cards for each purpose below:

  • Chase Sapphire PreferredSM Card (Initial Rewards Bonus) Offers 50,000 bonus points after you spend $3,000 during the first three months the card is open. You can redeem these points for $500, either in the form of a check, which you can use to replenish your bank account after the holidays, or a statement credit on your card account. It does not have a first-year annual fee, but a $95 fee will be charged beginning in the second year.
  • Capital One® VentureSM Rewards Credit Card (Ongoing Rewards) This card is essentially a 2% cash back credit card as long as you redeem for travel-related expenses. It also provides a $100 initial rewards bonus and does not have an annual fee during the first year ($59/yr. thereafter).
  • Citi® Platinum Select® MasterCard (Balance Transfer) Gives you 0% on transfers for 21 months. This card has a 3% balance transfer fee and no annual fee.
  • Citi® Dividend Platinum Select® Visa® Card - $100 Cash Back (0% on Purchases) Not only offers 0% on purchases for 15 months and has no annual fee, but also allows you to further reduce the cost of holiday purchases with a $100 initial rewards bonus, 5% cash back on department store, toy store, clothing, and electronics purchases through the end of the year, and 1% on all other purchases.

A number of credit card companies are also offering interesting holiday specials. If you already have one of their cards, you could therefore earn extra rewards on certain types of purchases, get discounts at online shopping malls, benefit from special rewards redemption discounts, etc. The highlights of these holiday programs are listed by issuer below:

American Express

  • 5X Rewards on 20 major brands through the end of the year

  • Weekly 50% off deals on Facebook through the end of the year

  • 50 offers for 20% off on things ranging from retail to travel during American Express CYBER WEEK (11/21 - 11/30)

  • $25 credit when you spend $25 or more at qualifying small businesses on Small Business Saturday (11/26)

Capital One

  • Earn 40% - 100% more rewards on purchases made through Perk Central, Capital One’s online shopping portal, Nov. 25-28

  • Redemption specials on GPS systems, golf clubs and televisions 11/18 – 11/21

Chase

  • Nov. 1 – Nov. 25, Chase Freedom, Sapphire and Ink cardholders can use rewards points to bid on popular holiday gifts in weekly Holiday Merchandise Auctions

  • Nov. 15 – Dec. 12, Chase Freedom, Sapphire and Ink cardholders get 10 points per $1 spent at select retailers through ultimaterewards.com

  • Amazon.com Credit Card users get 10 points per $1 spent on downloadable digital purchases at Amazon.com

  • Through Jan. 4, Chase Freedom cardholders receive 10% or 20% off select gift cards redeemed at ultimaterewards.com/great

  • Chase Sapphire cardholders can use points to get winter experiences with Olympic gold medalist Picabo Street

Discover

  • Oct. – Dec., Discover cardholders get a 5% cash back bonus on up to $300 spent at restaurants, department stores and clothing stores

  • 2% cash back on up to $250 spent on Amazon.com each billing through the end of the year

  • Discounts and free shipping from select retailers at Shop Discover, Discover’s online mall

  • Redeem rewards for premium tickets to and an exclusive experience at the 2012 Discover Orange Bowl

It certainly appears that many credit card companies are in the giving mood these days. That’s a good thing too because it gives us a bit of a break when it comes to the $831 that American Express estimates the average consumer will spend on gifts this holiday season. Hopefully, less stressful gifting will lead to a happier holidays for everyone!