The holidays always seem to sneak up on us, don’t they?
Every December, you vow not to be caught off guard again.
The holidays are just around the corner and you may not have the budget for gifts.
Millions of people have been impacted by the rising cost of essentials.
No matter how tight your budget is, you still want to show your family and friends how much you care about them.
You want to capture that holiday magic with the perfect gift, but you need to come up with a room in the budget ASAP. What’s a holiday shopper to do?
Get Holiday Cash With Credit
There are lots of ways to make extra money.
But if you need quick cash, you might have to take out a personal loan or open a credit card.
Today, we’ll be talking about that last option.
So which credit card is best for holiday shopping?
The best credit cards for holiday shopping in 2024 will give you long term payoff, as well as a quick cash boost.
Many credit cards have cashback or points perks that you can use later on.
Even cards that don’t have those perks can help you build your credit.
With credit cards, you have lots of options.
It can feel overwhelming, especially when you add holiday stress into the mix.
Before applying for a credit card, you’ll need to know your credit score.
Has it been a while since you’ve checked your credit?
Checking again before applying is a good idea.
Maybe you’ve never checked your credit score.
Don’t worry; it’s easy!
Make your list, check your credit
First, know your rights.
You’re legally entitled to a free credit report from each of the three major credit bureaus once a year.
This report doesn’t impact your score or cost you anything.
But it doesn’t stop lots of websites from trying to charge you for a credit report, though, so don’t let them trick you!
These credit reports will give you your credit score.
Once you know your that, you can start looking at credit cards.
The credit cards with the best rewards usually require “Good” or “Excellent” credit scores.
Knowing your credit score before applying for a credit card is essential.
If you apply for credit cards and get denied, it can hurt your overall credit score.
This gets you stuck in a vicious cycle.
You apply and get rejected, which hurts your score, so you’re more likely to get rejected next time, too.
When you know what your credit score is, you can pick the best credit card for holiday shopping without hurting your score in the long run.
You’re also more likely to get approved quickly if you apply for credit cards within or below your credit range.
Let’s take a look at the three best credit cards for holiday shopping so you can start wrapping those presents.
Already Have Good Credit?
Our first pick is the Chase Freedom Unlimited® credit card.
Chase Freedom Unlimited® credit card
Why we like it:
- The Chase Freedom Unlimited® stands out as a top choice for holiday shopping due to its combination of no annual fee, competitive APR terms, and the ability to earn significant cash back rewards. The card's introductory offer of an additional 1.5% cash back on up to $20,000 spent in the first year is a fantastic bonus for holiday purchases, potentially saving you up to $300. Additionally, the card provides cash back on a variety of spending categories, including travel, dining, and drugstore purchases, making it versatile for your holiday needs.
- Furthermore, the ability to transfer points between Chase cards and redeem for travel at higher rates with select cards enhances the card's value. This feature enables you to maximize the value of your points and potentially plan a post-holiday getaway.
- Chase Freedom Unlimited® offers a comprehensive and flexible approach to holiday shopping, making it a standout option for consumers looking to save money and earn rewards during the holiday season.
Annual Fees
Regular APR
Credit Required
Annual Fees
Regular APR
Credit Required
Why we like it:
- The Chase Freedom Unlimited® stands out as a top choice for holiday shopping due to its combination of no annual fee, competitive APR terms, and the ability to earn significant cash back rewards. The card's introductory offer of an additional 1.5% cash back on up to $20,000 spent in the first year is a fantastic bonus for holiday purchases, potentially saving you up to $300. Additionally, the card provides cash back on a variety of spending categories, including travel, dining, and drugstore purchases, making it versatile for your holiday needs.
- Furthermore, the ability to transfer points between Chase cards and redeem for travel at higher rates with select cards enhances the card's value. This feature enables you to maximize the value of your points and potentially plan a post-holiday getaway.
- Chase Freedom Unlimited® offers a comprehensive and flexible approach to holiday shopping, making it a standout option for consumers looking to save money and earn rewards during the holiday season.
- Cardholders can earn an additional 1.5% cash back on up to $20,000 spent in the first year, potentially yielding up to $300 in cash back, making it an attractive option for holiday spending.
- The card's generous cash back rewards, including 6.5% on travel, 4.5% on dining and drugstore purchases, and 3% on all other purchases, provide a substantial opportunity for savings during the holiday season.
- The ability to transfer points between Chase cards and redeem for travel at higher rates adds an extra layer of value to the card, potentially enabling cardholders to plan a post-holiday getaway.
It’s the best credit card for holiday shopping when you don’t need to build your credit, but do need extra cash.
You’ll need good to excellent credit (a score of 690 to 700) to qualify – so double-check your score before you apply.
If you do qualify, though, the perks on this card make it perfect for shopping this holiday season.
Pros:
- No annual fee, making it a cost-effective choice.
- An introductory offer of an additional 1.5% cash back on up to $20,000 spent in the first year.
- Competitive cash back rates, including 6.5% on travel and 4.5% on dining and drugstore purchases.
- The ability to transfer points and redeem for travel with select cards.
- A lengthy 0% introductory APR period, ideal for managing holiday expenses.
Cons:
- The card may not be suitable for individuals with lower credit scores.
- The varying APR range can be high
Looking For A New Bank?
Our second pick is the Alliant Visa® Signature Credit Card with Cashback.
Alliant Visa® Signature - Best Cashback Credit Card for Alliant Credit Union Members
Why we like it:
- The Alliant Cashback Visa® Signature Credit Card stands out as a top contender for holiday shopping, thanks to its impressive cash-back rewards and favorable terms. What sets it apart is the potential to earn up to 2.5% cash back on the first $10,000 of qualifying eligible purchases per billing cycle. This is a significantly higher rate than most other flat-rate cards on the market. Even if you don't meet the requirements for the highest tier, you'll still enjoy a respectable 1.5% cash-back rate on all other purchases. Plus, the absence of an annual fee and foreign transaction fees make it a cost-effective choice for international shopping.
- Moreover, the card's simplicity is a major draw. There are no complicated categories to track, making it incredibly user-friendly. Whether you're aiming for the top-tier rewards or not, you'll earn consistent cash back on all your spending. This straightforward approach is ideal for holiday shopping, where purchases can vary widely.
Annual Fees
$0
Regular APR
17.24%-27.24% Variable APR
Credit Required
Excellent (740 – 850)
Annual Fees
$0
Regular APR
17.24%-27.24% Variable APR
Credit Required
Excellent (740 – 850)
Why we like it:
- The Alliant Cashback Visa® Signature Credit Card stands out as a top contender for holiday shopping, thanks to its impressive cash-back rewards and favorable terms. What sets it apart is the potential to earn up to 2.5% cash back on the first $10,000 of qualifying eligible purchases per billing cycle. This is a significantly higher rate than most other flat-rate cards on the market. Even if you don't meet the requirements for the highest tier, you'll still enjoy a respectable 1.5% cash-back rate on all other purchases. Plus, the absence of an annual fee and foreign transaction fees make it a cost-effective choice for international shopping.
- Moreover, the card's simplicity is a major draw. There are no complicated categories to track, making it incredibly user-friendly. Whether you're aiming for the top-tier rewards or not, you'll earn consistent cash back on all your spending. This straightforward approach is ideal for holiday shopping, where purchases can vary widely.
- Works with Google Pay™, Apple Pay™, and Samsung Pay™
- ATM fee rebates up to $20/month with Alliant High-Rate Checking
- No monthly service fees with Alliant High-Rate Checking
- 0.25% APY (2.0x the national average) with Alliant High-Rate Checking
This credit card requires you to be a member of Alliant Credit Union to apply, so if you’ve been looking at switching banks, this one is perfect for you.
Alliant keeps things simple.
They only offer two cards, and the cards are pretty similar.
This card was our pick because of cashback options.
They offer cash back on every purchase, making this their best credit card for holiday shopping.
Pros:
- High cash-back rates, up to 2.5% on qualifying purchases
- No annual fee or foreign transaction fees
- Straightforward rewards structure with no categories to track
- Additional benefits with Alliant High-Rate Checking account
- Compatibility with popular digital payment methods
Cons:
- Requires membership in Alliant Credit Union and an associated checking account for the highest cash-back tier
- Spending cap on the highest cash-back rate
Building Or Repairing Your Credit?
This third pick is for people who don’t have “good” or “excellent” credit.
If your credit score needs to be built or repaired, check out Credit.com.
Credit.com’s tagline is “Better Credit For All”, and they live up to that.
Credit.com lets you look at cards across several different companies and pick the one that’s best for you.
You start by inputting what your credit score is and what you’re looking for in a card.
Then Credit.com pulls up all the cards that fit your criteria and gives you a snapshot of the features.
Once you have all the info, you can pick the best credit card for holiday shopping and your wallet.
Pros:
- Card options for any credit score.
- A wide variety of partners gives you flexibility.
- Preference filters let you tailor a card to your needs.
- Allows you to check your credit score for free every 14 days.
Cons:
- Recommendations aren’t always accurate.
- You’ll need to double-check that your card is a good fit.
- Directs you to lenders rather than lending directly.
Other Credit Cards For Holiday Shopping
Wells Fargo Active Cash® Card
Why we like it:
- The Wells Fargo Active Cash® Card offers a rare combination of features that make it an excellent choice for holiday shoppers. The 2% cash back on all purchases is a compelling offer, especially when coupled with the absence of an annual fee. This means cardholders can maximize their rewards without worrying about covering an additional cost. The introductory 0% APR on purchases also provides a valuable cushion for those looking to spread out payments during the holiday season.
- Furthermore, the flexibility in redemption options ensures that cardholders can use their cash back in a way that best suits their needs, whether it's through statement credits, ATM withdrawals, direct deposits, or mailed checks.
Annual Fees
Regular APR
Credit Required
Annual Fees
Regular APR
Credit Required
Why we like it:
- The Wells Fargo Active Cash® Card offers a rare combination of features that make it an excellent choice for holiday shoppers. The 2% cash back on all purchases is a compelling offer, especially when coupled with the absence of an annual fee. This means cardholders can maximize their rewards without worrying about covering an additional cost. The introductory 0% APR on purchases also provides a valuable cushion for those looking to spread out payments during the holiday season.
- Furthermore, the flexibility in redemption options ensures that cardholders can use their cash back in a way that best suits their needs, whether it's through statement credits, ATM withdrawals, direct deposits, or mailed checks.
- Up to $600 in cell phone protection for added security.
- Advanced security features like Voice Verification and 2-step Verification.
- Exclusive Visa perks, including Concierge and Luxury Hotel Collection access.
- Pros
- Competitive 2% cash back rate on all purchases.
- No annual fee, enhancing overall value for cardholders.
- 15-month 0% APR introductory period for added financial flexibility.
- Cons
- 3% foreign transaction fee may deter international use.
- Balance transfer fee increases after 120 days, potentially impacting long-term suitability.
Wells Fargo Reflect® Card
Why we like it:
- The Wells Fargo Reflect® Card stands out as an excellent choice for holiday shopping. Its most impressive feature is the 0% introductory APR for a generous 21 months on both purchases and qualifying balance transfers. This means you can make big-ticket purchases or transfer existing balances without incurring interest charges for nearly two years. For savvy holiday shoppers looking to spread out payments, this is a game-changer.
- Moreover, the absence of an annual fee is a welcome relief, allowing you to maximize your savings during the holiday season. The Reflect® Card also caters to the digital age with its Cellular Telephone Protection, providing up to $600 of coverage against damage or theft when you pay your monthly cell phone bill with the card. This perk offers peace of mind for those who rely heavily on their mobile devices.
Annual Fees
Regular APR
Credit Required
Annual Fees
Regular APR
Credit Required
Why we like it:
- The Wells Fargo Reflect® Card stands out as an excellent choice for holiday shopping. Its most impressive feature is the 0% introductory APR for a generous 21 months on both purchases and qualifying balance transfers. This means you can make big-ticket purchases or transfer existing balances without incurring interest charges for nearly two years. For savvy holiday shoppers looking to spread out payments, this is a game-changer.
- Moreover, the absence of an annual fee is a welcome relief, allowing you to maximize your savings during the holiday season. The Reflect® Card also caters to the digital age with its Cellular Telephone Protection, providing up to $600 of coverage against damage or theft when you pay your monthly cell phone bill with the card. This perk offers peace of mind for those who rely heavily on their mobile devices.
- Roadside Dispatch® provides round-the-clock emergency roadside assistance, guaranteeing you won't be left stranded during your holiday journeys.
- My Wells Fargo Deals offers tailored discounts from diverse merchants, enhancing the joy of holiday shopping, dining, and experiences, with cash back as an effortless account credit.
- Credit Close-up℠ equips you with the tools to comprehend, monitor, and enhance your FICO® Score without any adverse effects on your credit.
- Pros
- Extended 0% intro APR period for both purchases and balance transfers.
- No annual fee, allowing you to save more during the holiday season.
- Valuable perks like Cellular Telephone Protection and Roadside Dispatch® add extra layers of security and convenience.
- Cons
- Variable APRs after the intro period may be higher than some competitors.
- Balance transfer fee of 5%, with a minimum of $5, could impact those looking to consolidate debts.
card_name
Why we like it:
- The Prime Visa by Chase earns our enthusiastic endorsement for several compelling reasons. Firstly, its $0 annual fee, coupled with an enticing rewards program, makes it an attractive option for a broad spectrum of consumers. Prime members are instantly rewarded with a $150 Amazon Gift Card upon approval, and they continue to enjoy a generous 5% cash back at Amazon.com, Amazon Fresh, and Whole Foods Market. This card's versatility shines through with an additional 5% cash back on Chase Travel purchases, ensuring it's not limited to just online shopping. Furthermore, the 2% cash back at gas stations, restaurants, and local transit, along with 1% on all other purchases, demonstrates its commitment to rewarding everyday spending.
- What sets the Prime Visa apart is its seamless integration with the Amazon ecosystem. With the ability to redeem rewards at Amazon.com the very next day, it caters to the needs of avid online shoppers. The absence of an annual credit card fee and a plethora of travel and shopping protections further bolster its appeal. While it does require an Amazon Prime membership, the combined benefits far outweigh the associated costs. All in all, the Prime Visa by Chase is a standout choice for holiday shopping, particularly for loyal Amazon Prime users looking to maximize their spending power.
Annual Fees
Regular APR
Credit Required
Annual Fees
Regular APR
Credit Required
Why we like it:
- The Prime Visa by Chase earns our enthusiastic endorsement for several compelling reasons. Firstly, its $0 annual fee, coupled with an enticing rewards program, makes it an attractive option for a broad spectrum of consumers. Prime members are instantly rewarded with a $150 Amazon Gift Card upon approval, and they continue to enjoy a generous 5% cash back at Amazon.com, Amazon Fresh, and Whole Foods Market. This card's versatility shines through with an additional 5% cash back on Chase Travel purchases, ensuring it's not limited to just online shopping. Furthermore, the 2% cash back at gas stations, restaurants, and local transit, along with 1% on all other purchases, demonstrates its commitment to rewarding everyday spending.
- What sets the Prime Visa apart is its seamless integration with the Amazon ecosystem. With the ability to redeem rewards at Amazon.com the very next day, it caters to the needs of avid online shoppers. The absence of an annual credit card fee and a plethora of travel and shopping protections further bolster its appeal. While it does require an Amazon Prime membership, the combined benefits far outweigh the associated costs. All in all, the Prime Visa by Chase is a standout choice for holiday shopping, particularly for loyal Amazon Prime users looking to maximize their spending power.
- Rewards come as points, redeemable for eligible Amazon.com purchases with no minimum redemption required.
- Flexible redemption options include cash back, statement credits, deposit into eligible accounts, travel, and gift cards.
- Travel protections such as accident insurance, lost luggage reimbursement, and auto rental collision damage waiver
- Pros
- Lucrative rewards program, especially for Amazon and Whole Foods purchases.
- Flexible redemption options for earned points.
- No annual credit card fee.
- Comprehensive travel and shopping protections.
- Visa Signature benefits enhance overall cardholder experience.
- Cons
- Requires an Amazon Prime membership, which comes with an annual fee.
- Variable APR range may be relatively high for some consumers.
- Rewards may be less appealing for non-Amazon shoppers.
Target REDcard™ Credit Card
Why we like it:
- The Target REDcard™ Credit Card is a standout choice for holiday shopping due to its generous 5% discount on most purchases at Target. This can lead to substantial savings, especially during the holiday season when expenses tend to be higher. The absence of an annual fee is a major plus, as it ensures that all the discounts you earn go directly into your pocket.
- Moreover, the extended return policy and early access to exclusive offers are additional perks that enhance the overall value of this card. For individuals who frequently shop at Target, this card is a no-brainer as it provides a straightforward way to save money on everyday and holiday purchases.
Annual Fees
$0
Regular APR
28.15% Variable
Credit Required
Good -Excellent (670-850)
Annual Fees
$0
Regular APR
28.15% Variable
Credit Required
Good -Excellent (670-850)
Why we like it:
- The Target REDcard™ Credit Card is a standout choice for holiday shopping due to its generous 5% discount on most purchases at Target. This can lead to substantial savings, especially during the holiday season when expenses tend to be higher. The absence of an annual fee is a major plus, as it ensures that all the discounts you earn go directly into your pocket.
- Moreover, the extended return policy and early access to exclusive offers are additional perks that enhance the overall value of this card. For individuals who frequently shop at Target, this card is a no-brainer as it provides a straightforward way to save money on everyday and holiday purchases.
- 10% account anniversary coupon: A generous gesture that rewards cardholders for their loyalty.
- Special Target Subscriptions offer: This feature provides an extra 5% discount when using the Target RedCard™ Credit Card with the Target Subscriptions program, amplifying the potential for savings.
- 5% off in-store Starbucks spending: A unique benefit that caters to coffee enthusiasts, ensuring they get a discount even when grabbing a Starbucks at Target.
- Early access to upcoming benefits: Cardholders get exclusive access to promotions and events before the general public, adding an element of exclusivity to the card's offerings.
- Pros
- 5% discount on most in-store and online purchases at Target, including Starbucks in-store purchases.
- Free 2-day shipping for online orders, making it convenient for last-minute holiday shopping.
- Extended return policy, providing an additional 30 days for returns, which can be especially useful for holiday gifts.
- Cons
- The high APR is typical for store-specific cards, so it’s crucial to pay off the balance in full to maximize savings.
- Limited usability; the card can only be used at Target, which may not be suitable for those who shop at a variety of retailers.
- Lacks additional shopping protections that are commonly offered by major credit card networks.
card_name - 18 month BT offer
Why we like it:
- The Citi® Double Cash® Card's simplicity is a key factor. Unlike cards with rotating categories or spending limits, this card offers a consistent 2% cash back on all purchases. This straightforward approach means you can use it for all your expenses without having to track bonus categories.
- The flexibility to convert rewards into travel points is an added bonus. This opens up opportunities for those who enjoy traveling to potentially get even more value out of their rewards. The ability to combine points across multiple Citi cards further enhances this flexibility.
- In addition, the card's 0% introductory APR on balance transfers is a valuable feature for those looking to manage existing debt or make large purchases. This introductory period can provide significant savings on interest charges.
Annual Fees
Regular APR
Credit Required
Annual Fees
Regular APR
Credit Required
Why we like it:
- The Citi® Double Cash® Card's simplicity is a key factor. Unlike cards with rotating categories or spending limits, this card offers a consistent 2% cash back on all purchases. This straightforward approach means you can use it for all your expenses without having to track bonus categories.
- The flexibility to convert rewards into travel points is an added bonus. This opens up opportunities for those who enjoy traveling to potentially get even more value out of their rewards. The ability to combine points across multiple Citi cards further enhances this flexibility.
- In addition, the card's 0% introductory APR on balance transfers is a valuable feature for those looking to manage existing debt or make large purchases. This introductory period can provide significant savings on interest charges.
- 10% account anniversary coupon: A generous gesture that rewards cardholders for their loyalty.
- Special Target Subscriptions offer: This feature provides an extra 5% discount when using the Target RedCard™ Credit Card with the Target Subscriptions program, amplifying the potential for savings.
- 5% off in-store Starbucks spending: A unique benefit that caters to coffee enthusiasts, ensuring they get a discount even when grabbing a Starbucks at Target.
- Early access to upcoming benefits: Cardholders get exclusive access to promotions and events before the general public, adding an element of exclusivity to the card's offerings.
- Pros
- 2% cash back structure is simple and effective.
- No annual fee, making it cost-effective for all users.
- 0% intro APR on balance transfers for 18 months provides significant value.
- Wide accessibility with a recommended credit score range of 630-850.
- Flexibility to convert rewards into travel points.
- Cons
- No sign-up bonus.
- No 0% introductory period on purchases.
Find The Best Credit Cards For Holiday Shopping In 2024
Ultimately, there is no “best credit card” when it comes to holiday shopping.
There are a lot of factors that go into finding a credit card that works for you.
The best credit card for someone with an excellent credit score isn’t going to be the same as the best credit card for someone with a poor credit score.
Some people use their holiday credit card all year round, while others need a one-time use.
The most important thing finding a card that fits your needs and helps you out.
Do you need to improve your credit for buying a home or a car in the future?
Picking a card that’s designed to help you build credit is a great choice.
Do you travel a lot for work or fun?
Pick a card that has rewards points you can put towards travel.
Maybe you have some smaller debts with high-interest rates.
Conclusion
A credit card can help you rearrange your finances to work for your benefit.
The key to choosing the best credit card for holiday shopping is finding a card that fits your short- and long-term financial goals.
Picking a card like that means you can keep earning and saving pennies, all while shopping for the perfect gift.
Choosing a credit card that fits your goals takes away some money stress.
Less stress leaves you free to enjoy the best part of the holidays: spending time with the people you love most.
Here at Penny Calling Penny, our holiday blogs are only a part of our growing library.
We’re dedicated to helping you learn to manage your money, no matter where you’re at on your financial journey.
Subscribe to our newsletter so you never miss a Penny, and we’ll see you next time!
FAQs
Using a credit card for holiday purchases can offer benefits like fraud protection and rewards. However, it’s important to manage your spending and pay off the balance to avoid high interest rates.
Consider factors like the card’s rewards structure, annual fees, interest rates, and any promotional offers. Choose a card that aligns with your spending habits and offers the best value for your shopping needs.
Many credit card issuers offer holiday-specific promotions, such as increased rewards on certain purchases or limited-time offers. Check with your card issuer or research online to find out about any ongoing promotions.
Set a budget for your holiday shopping and stick to it. Avoid making impulsive purchases and track your spending regularly. Consider using apps or alerts provided by your credit card issuer to help you stay within your budget.
