Great Credit Cards for Holiday Shopping
The branded card of a retailer you are loyal to may have strong rewards.
As you dive into holiday shopping, get some extra oomph from your spending by using a rewards credit card that provides additional cash back or points at the retailers—or retailer websites—you visit most.
The Discover It card, for example, provides 5% cash back on up to $1,500 in combined purchases at Amazon.com, Target.com and Walmart.com in the fourth quarter of 2020 (1% on all other spending). Quarterly categories for 2021 hadn’t been announced at press time, but bonus categories in 2020 included grocery stores, gas stations, wholesale clubs and restaurants. For rewards on a broader variety of online purchases, consider the Bank of America Cash Rewards Visa. You choose one of six categories that earn 3% cash back, including online shopping, gas, dining, travel, drugstores, and home improvement and furnishings—and each calendar month you can change the category. The card also offers 2% back at grocery stores and wholesale clubs. After you spend $2,500 combined in the 2% and 3% categories each quarter, you get 1% back on purchases in both categories. All other spending earns 1% back.
The branded card of a retailer you are loyal to may have strong rewards. The Amazon Rewards Visa offers 3% cash back on Amazon purchases (5% if you’re a Prime member), and the Capital One Walmart Rewards Mastercard provides 5% back at Walmart.com and 2% at Walmart stores (5% in-store the first 12 months if you use Walmart’s mobile-payment app). Both cards offer rewards in other spending categories, too. The Target RedCard offers a 5% discount on in-store and online Target purchases.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Rake in a big bonus. The holiday season may be a good time to open a card that offers a bonus of cash back, points or miles if you charge a certain amount in the first few months. The Chase Sapphire Preferred Visa ($95 annual fee) card offers 80,000 points—worth $1,000 in travel bookings or $800 in cash—if you spend $4,000 in the first three months. Or consider the Bank of America card mentioned above. It provides $200 for spending $1,000 in the first 90 days.
Lisa has been the editor of Kiplinger Personal Finance since June 2023. Previously, she spent more than a decade reporting and writing for the magazine on a variety of topics, including credit, banking and retirement. She has shared her expertise as a guest on the Today Show, CNN, Fox, NPR, Cheddar and many other media outlets around the nation. Lisa graduated from Ball State University and received the school’s “Graduate of the Last Decade” award in 2014. A military spouse, she has moved around the U.S. and currently lives in the Philadelphia area with her husband and two sons.
-
Is 100 the New 70?
Eating well, exercising, getting plenty of sleep and managing chronic stress can help make you a SuperAger. Funding that long life requires longevity literacy.
By Phil Wright, Certified Fund Specialist Published
-
Nine Lessons to Be Learned From the Hilton Family Trust Contest
Disclaimers, good communication, post-marital agreements and more could help avoid conflict in a family after the owners of a wealthy estate pass away.
By John M. Goralka Published
-
403(b) Contribution Limits for 2024
retirement plans Teachers and nonprofit workers can contribute more to a 403(b) retirement plan in 2024 than they could in 2023.
By Jackie Stewart Published
-
Roth IRA Contribution Limits for 2024
Roth IRAs Roth IRA contribution limits have gone up for 2024. Here's what you need to know.
By Jackie Stewart Published
-
Four Tips for Renting Out Your Home on Airbnb
real estate Here's what you should know before listing your home on Airbnb.
By Miriam Cross Published
-
Five Ways to a Cheap Last-Minute Vacation
Travel Procrastinator? No matter. You can pull off a fun and memorable getaway on a moment's notice — without breaking the bank.
By Vaishali Varu Last updated
-
How Much Life Insurance Do You Need?
insurance Instead of relying on rules of thumb, you’re better off taking a systematic approach to figuring your life-insurance needs.
By Kimberly Lankford Published
-
When Is Amazon Prime Day?
Amazon Prime In 2023 Amazon had two Prime Day events — one in July and another, called Big Deal Days, in October. We expect 2024 to follow the same schedule.
By Bob Niedt Last updated
-
How to Shop for Life Insurance in 3 Easy Steps
insurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
By Kaitlin Pitsker Published
-
5 Ways to Shop for a Low Mortgage Rate
Becoming a Homeowner Rates are high this year, but you can still find an affordable loan.
By Daniel Bortz Published