Best credit cards for holiday shopping for 2021

You can choose from several types of credit cards for your holiday shopping. Choosing the best is all about narrowing down your choices based on the features you like the most.

Most vacation buyers want a card that will help them maximize credit card rewards (if you’re more interested in an interest-free offer, we’ll cover that later). There are a few things to consider when choosing a vacation rewards card:

Type of rewards: The two most common types of rewards are cash back and travel points. The most popular are cash back credit cards and they are easy to use. However, travel enthusiasts often love travel credit cards. These usually earn credit card points and are a bit more complicated, but they’re great for saving money on travel.

Reward rate: The reward rate is the amount a credit card earns on purchases, whether it’s cash back, points, or credit card miles. Some cards offer the same rate in all categories, such as an unlimited 2% return. They work well if you have balanced expenses all over the place. Others offer bonus categories, such as 4% discount on meals or 3% on online purchases. These can be more rewarding if they have bonus categories that match your vacation spending.

Registration bonus: A sign-up bonus, also known as a welcome bonus, is an offer available to new cardholders. Most of the best signup bonuses only require that you hit a minimum spend, such as $ 3,000 in three months to earn a $ 500 bonus. Since you will be spending more during the holidays, now is a great time to land a big bonus.

Annual subscription : Credit cards have a wide range of annual fees. There is everything from cards with no annual fee to cards that cost over $ 500 per year. When you evaluate credit cards, be sure to compare the value of their benefits to the annual fees they charge.

These are the features to keep in mind when choosing a credit card for the holidays. Their order of importance is up to you.

Some consumers favor a valuable sign-up bonus, while others prefer a low annual fee or a high reward rate. If you’ve planned a lot of vacation spending, you might also want to look specifically at high limit credit cards. With a higher credit limit, you will be able to spend more.

You will find that the best rewards credit cards all offer a great mix of benefits. It’s just a matter of finding the one that works for you.

How to choose a vacation credit card to save on interest

If you want to increase your vacation budget, a new credit card could also help. In this situation, look at introductory 0% APR credit cards.

This type of credit card offers 0% APR on purchases for an introductory period, such as 12 or 15 months. You can put your holiday purchases on your credit card, then pay off the balance over time. As long as it is paid off at the end of the introductory period, the card issuer will not charge you any interest. Even compared to a good credit card APR, an introductory 0% APR will save you a lot of money on vacation credit card debt.

Learn more: What is APR and what does it mean for your credit cards?

Another great thing about 0% APR introductory cards is that a lot of them offer signup bonuses and purchase rewards. This means that you don’t need to compromise on the benefits of your card. You could, for example, request a card that offers:

  • An introductory APR of 0% on purchases
  • Cash back on every purchase
  • A sign-up bonus after reaching a minimum spending

You’ll save money on your holiday purchases with the signup bonus and cash back on your card. To make it even better, you will be able to pay off the balance without interest on monthly payments during the introductory period.


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