A credit card used for holiday shopping is a tool for collecting rewards and protection on purchases you were already going to make. Used well, a credit card can be the best way to pay for the holidays. You get rewards, purchase protection, and fraud coverage that cash and debit cards don’t offer. NerdWallet offers these tips for getting the most from your credit card rewards:
1. Hit the minimum spending requirement to earn a sign-up bonus
Many credit cards offer some sort of sign-up bonus, which is an influx of points, miles or cash in exchange for spending a certain amount of money within a specific period of time… You’d be hard-pressed to find any other way to earn that many miles and points that quickly.
2. Take advantage of additional bonus offers
While the sign-up bonus is often the best way to earn a giant trove of points in one fell swoop, it’s often not the only way.
Authorized user bonuses
Some credit cards offer additional bonuses for adding an authorized user. If you’re comfortable adding someone an authorized user, such as a partner or a trustworthy, college-age child, this can earn extra points…
Additional spending bonuses
Some cards periodically offer bonus points to encourage ongoing spending. You might see a promotion like, "Earn an extra 10,000 points for every $1,000 spent between now and the end of the year." Assuming you don’t get a better earnings rate on another credit card, these offers can be lucrative.
3. Use online shopping portals
We recommend using shopping portals for online shopping you were intending to do anyway, as they can earn you extra points and miles toward your next trip. Many loyalty programs have online shopping portals…
4. Take advantage of temporary bonuses
Whether it’s rotating categories or temporary bonuses, pay attention to when it’s time to use a certain credit card or to activate bonuses.
Rotating spending categories
Some credit cards offer bonus rewards in categories that rotate every few months. A sticky note on your card with a phrase like, "restaurants and PayPal, July through September" can help you track which card to use and when.
Limited-time additional perks
Banks are trying to entice customers with limited-time rewards. Make sure to register for promotions or offers on your card. Again, the sticky note method or a calendar reminder can help you remember to maximize those benefits.
5. Use your credit card for everything that doesn’t charge a fee
Whenever possible, use your credit card to rack up rewards. Check your automated payments and make sure your Wi-Fi bill and Netflix subscription is linked to your credit card rather than something like a debit card that doesn’t earn points.
And often, you don’t even need to carry around the physical credit cards. Set up your smart device to make mobile payments using apps such as Apple Pay or Google Pay. Even if you’re out on a run and don’t have your wallet, you could still pop into a convenience store that accepts mobile payments to grab a Gatorade simply by paying with your smartphone or Apple Watch.
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The strategies discussed in this article are general credit card rewards practices and may not apply to all credit card programs. Features, rewards, and benefits vary by issuer and card type. First Federal Bank offers the uChoose Rewards Credit Card. Please review your card's terms and benefits for details.