6 Credit Strategies to Help You Financially Prepare for the Holidays (2024)

Although we just welcomed fall, it’s time to start planning for the winter holidays. But, if thoughts of holiday shopping make you sweat and feel anxious, you’re not alone.

According to a survey from the investment firm Principal Financial Group, 52% of people feel financially stressed from holiday spending. The holiday season is an expensive time of year thanks to everything from buying gifts for family, friends, and co-workers to spending on decorations, travel, and playing host to holiday guests. But you don’t have to let money worries ruin your upcoming holiday this joyful season.

With a little extra planning, you can manage your spending and stretch your budget further. Here’s a look at six ways you can start using your credit card to prep for the holidays and alleviate the financial burden this season brings.

Credit card churning — the practice of opening new credit cards to take advantage of sign-up rewards and bonus offers — is an easy way to earn free money and rewards that can be used to offset the cost of holiday purchases.

For instance, the Chase Freedom Flex℠ Card offers new cardholders an easily attainable signup bonus, though slightly smaller in total, and there’s no annual fee.

Aside from the sizable signup bonus, new cardholders will enjoy competitive cash back rewards as well as a promotional APR.

However, this strategy only works when you use the cards wisely and only charge what you can afford to pay off in full so you don’t incur interest fees or get stuck in debt.

A 2017 Bankrate survey found that 31% of cardholders have never redeemed their rewards. If you fall into this statistic, it’s time to figure out your redemption plan and how it can help you save over the holidays.

First, look at the terms of your credit card’s redemption policy to see if you qualify for bonus points, miles, or cash back when you redeem for statement credit or a deposit into an affiliated bank account.

Alternatively, look at gift card redemption options with retailers you plan to shop at. Some credit cards like Chase offer discounts on retail cards when redeeming points.

For instance, Chase Ultimate Rewards offers 10% to 20% off select retailer gift cards. Depending on how long it will take to receive your gift card in the mail, you may want to redeem ahead of the shopping season so you get it by Black Friday to take full advantage of retailers’ holiday discounts.

Select credit cards offer rotating bonus reward categories in which you can earn extra points or cash back at specific retailers, restaurants, or in general categories such as gas and groceries. What many people don’t realize is that you must opt-in to get these extra rewards.

The Discover it® Cash Back card is one such option with quarterly rotating bonus reward categories.

Sign in to your credit card’s app for easy access to learn about what’s being offered and sign up to take advantage of those bonuses. Now is a great time to earn extra rewards and save them for the winter holidays to offset gift and travel costs!

You can earn exclusive cardmember discounts and savings of around 20% through your credit card company’s online shopping portals. Frequently referred to as a credit card bonus mall, this is basically a website that offers affiliate links to several online retailers and may offer additional rewards — potentially more than you typically earn — for every dollar spent at a particular retailer.

You can view participating merchants and see the available discounts or bonus rewards once you log in to the credit card’s online shopping portal. If you have multiple credit cards, review discount and rewards options across each platform to figure out where you can get the biggest discount.

Keep in mind that some retailers may not accept additional coupons or discount codes, and you will not earn bonus rewards on shipping charges or taxes, only the cost of the merchandise.

You run the risk of going into debt and carrying a revolving balance that racks up interest fees if you wait to buy all your holiday gifts just before Christmas and don’t have enough money saved to pay off the full balance. Avoid this financially devastating scenario by spreading out purchases over several weeks.

Retailers will begin rolling out pre-Black Friday deals in early November. This is a good time to begin buying presents for various loved ones on your shopping list. This will help alleviate the financial pressure you may feel come December and help you better manage your cash flow.

If you have no choice but to use credit for purchases that you’ll need several months to pay off, see if you qualify for a card with a promotional 0% APR period. These cards allow you to make purchases and incur no interest fees for up to 15 months.

Just be sure to pay the total balance off before the promotional period ends.

Whether you’re going out to lunch with a couple of co-workers or meeting up with a group of friends for dinner, you can rack up rewards on your credit card faster by offering to cover the bill for various expenses on group outings.

Offer to pay for things like shared rides to restaurant meals and group activities with your credit card and ask everyone to quickly pay you back through a digital transfer app like Zelle or Venmo. This gives you the opportunity to rack up cash back or travel points faster without spending extra money out of your own pocket. You can then redeem those rewards for holiday gifts or flights home to visit family!

Employing one or more of the above credit strategies can help maximize the value of your credit card, and, hopefully, reduce some of the financial strain so you can relax this holiday season.