Holly Johnson is a credit card expert and writer who covers rewards and loyalty programs, budgeting, and all things personal finance. In addition to writing for publications like Bankrate, CreditCards.com, Forbes Advisor and Investopedia, Johnson owns Club Thrifty and is the co-author of "Zero Down Your Debt: Reclaim Your Income and Build a Life You'll Love."
Sticking to a budget can be tough, and in the final crunch before the holidays, it can feel nearly impossible.
My partner and I are raising two teenage girls, and I just finished up my holiday shopping. In total, I've spent $1,346 on holiday gifts for my two kids and my nieces and nephews. I no longer buy gifts for adult family members or anyone else. Setting boundaries is a good way to stick to your budget.
But there's always a last-minute gift that sneaks in, right? That's why I suggest keeping an eye on credit card deals.
I'm not only talking about using credit cards to earn rewards, but also taking advantage of shopping portals and other offers that make credit card purchases an even better bargain. Using your credit card can help you lock in deals you really can't get any other way, and it's helped me saved money on almost every purchase I made this holiday season.
Here's a rundown of credit card deals I used this year to save on holiday spending, how they work and some pitfalls to watch out for.
If you can avoid overspending when using a credit card for your holiday shopping, consider these strategies to earn more rewards or score more savings on everything you buy.
Major credit card issuers like Amex, Capital One and Chase all have offers programs that can help you earn more rewards or cash back on eligible purchases. These programs look different but all basically work the same.
Essentially, cardholders can browse available offers that award them extra cash back or rewards points for eligible spending. All you have to do is add the offer to your account and make an eligible purchase to earn the additional rewards.
Examples of Amex Offers I've seen in my account this season include:
Some of the Chase Offers in my account this season include:
Capital One Offers are similar to Chase Offers in the way they tend to be for smaller amounts but are easier to use.
I've mostly used Capital One Offers on my Capital One Venture X Rewards Credit Card* and Capital One Savor Rewards Credit Card* because they aligned with where I already planned to spend.
For example, I used a Capital One Offer to save 7% at Wayfair.com when I bought my 13-year-old a stand-up lighted mirror for her bedroom.
I also got 25% back when I ordered our holiday cards from Shutterfly:
Other Capital One Offers I have used for holiday gifts this year were through stores like Lululemon and Ulta.
If you're into earning airline miles, major airlines also have shopping portals that let you make purchases at participating stores and earn rewards based on how much you spend. And remember, airline shopping portal rewards are on top of what your credit card may earn.
Examples of airline shopping portals to check out include American Airlines AAdvantage eShopping, Delta SkyMiles Shopping and Southwest Airlines Rapid Rewards Shopping.
For example, with Delta SkyMiles Shopping, you can earn bonus Delta miles while shopping at more than 1,000 stores like Apple, CVS, Nike and Kohl's.
You could also redeem rewards you already have for holiday gifts, which can help you spend less on purchases overall.
I did this twice this year to secure gifts for my children, redeeming Chase Ultimate Rewards points for merchandise and gift cards.
Most experts recommend never redeeming Chase points for merchandise, but the way I did it was an excellent deal. I redeemed 17,762 Chase Points from my husband's Chase Sapphire Reserve® account for a set of AirPods Pro 2 when Chase was offering 50% off Apple purchases with rewards, which they commonly do during the holidays.
Since AirPods Pro 2 have a retail value of $249, I got a lot more than 1 cent per point in value for this redemption. I also essentially got my kid a free set of AirPods, which is her big gift this year.
In addition, I redeemed some rewards for gift cards for both Lululemon and Ulta (about $250 in total). These gift cards were redeemed for exactly 1 cent per point, but they helped me justify buying more expensive items for my kids that I wouldn't have otherwise (like the crazy expensive Lululemon leggings that both my kids love).
The end of the year is also a great time to earn a credit card welcome bonus, and you definitely still have time to do so. After all, many cards will ship to you within a few days after account approval, and others give you a virtual card number you can use to start shopping online right away.
While some of the best credit card welcome bonuses require $4,000 or more in spending within the first few months of account opening, some other cards have lower amounts.
For example, you can earn an Amazon gift card instantly upon account approval with the Prime Visa. You could also opt for a card like the Chase Freedom Flex®*, which offers a $200 cash bonus when you spend just $500 on purchases within three months of the account opening.
While credit cards are good tools for saving on purchases, it's important to remember they can also lead to financial troubles. The average credit card interest rate is around 22%, so anything you can't pay off can quickly accumulate into overwhelming debt.
When shopping with a credit card, keep these tips in mind.
I have quite a few credit cards for personal and business use, and I use all of them for different purposes. But, here's a rundown of the cards I used most for holiday shopping this year, and why: