How To Pick the Best Rewards Credit Card for the Holidays

Choosing a solid rewards credit card can help you reap a slew of benefits during the holiday season, in addition to earning cash back or rewards points on purchases. But the earlier you snag a good credit card deal, the better. With holiday spending on the horizon, you can more easily meet welcome bonus requirements, plus get essential protections and perks on travel and purchases.

Here’s what to consider when choosing the best rewards credit card for the holidays, and how to make the most of it.

Aim for the Bonus

Many rewards credit cards offer a welcome bonus for new cardholders who spend a certain amount within the first few months of card opening. Holiday spending can make it easier to earn a credit card sign-up bonus because you’re more likely to spend a large amount in a short period of time.

And if you need a little more time to earn the bonus, a handful of credit cards offer a longer bonus period, such as the Discover it card which gives you up to a year to qualify.

As you shop for a credit card to use for the holidays, pay attention to the rewards program. Check if it offers rotating bonus categories for merchants where you might be buying gifts (Amazon or department stores) or gift cards (grocery stores). Flat-rate cash back rewards can also be a good choice. These cards pay the same rewards-earning rate, no matter where you shop. Just be aware of maximum spend amounts in some bonus reward categories; for example, if only the first $1,500 of category purchases are eligible for bonus cash back.

Use the Bonus for Holiday Shopping or Travel

Earning a welcome bonus quickly—easier if the bonus has a low spending requirement—gives you the opportunity to use bonus rewards for holiday travel or shopping. Even a small bonus can help offset holiday costs.

Earn Rewards on Holiday Travel

If your holiday plans include travel, look for a credit card that rewards travel and travel-related expenses. Miles flown or points for airline tickets can add sizable rewards to your stockpile, but even road trips are fair game for earning travel points, since Airbnbs, hotel stays, and tourist outings are often considered travel purchases.

Make the Most of Benefits

Make the most of credit card perks and benefits, which include a range of consumer protections and waived or reduced fees.

Trip Cancellation/Interruption Insurance

Travel insurance can save you money if you have to cancel or interrupt your trip due to unforeseeable circumstances. You can file a claim to be reimbursed for nonrefundable travel expenses due to covered events (such as a medical emergency), up to a certain amount for each traveler on your itinerary. This benefit can save you hundreds of dollars in trip costs.

Waived Baggage Fees

Are you packing for a long trip or bringing gifts with you? Checked baggage fees can add up, increasing the cost of holiday travel. Look for a travel or co-branded airline rewards credit card that waives baggage fees to save on checked luggage. Several Delta credit cards offer the first checked bag free for up to nine travelers on the same reservation.

No Foreign Transaction Fees

Foreign transaction fees are charged on purchases made in currencies other than U.S. dollars, even if you're buying a flight on an airline based in another country. If your holiday travel is taking you out of the country, look for a travel rewards credit card, since most don’t charge a foreign transaction fee.

Extended Warranty

Extend a manufacturer’s warranty when you use a credit card with extended warranty protection to make qualifying purchases. This gives you extra coverage if you have trouble with your purchases after the original warranty expires.

Purchase Protection

If purchases are damaged or stolen, purchase protection can repair or replace those items for no additional charge. Purchase protection benefits may last 60-180 days past the original purchase date depending on your credit card.

Price Protection

If the price of an item drops after you’ve purchased it, credit cards with a price protection benefit can refund price differences, with restrictions. Some cards may offer generous protections, up to 60 or 90 days.

Stack Rewards

You can get more out of your rewards by shopping through airline, hotel, credit card, or online shopping portals, which may offer additional cash back, miles, points, or discounts. Rather than go directly to a retailer’s website, start at a portal, such as Chase’s Ultimate Rewards shopping portal or Wells Fargo’s Earn More Mall.