The Ultimate Guide to Credit Cards
Monday, March 4, 2024

6 Tips: Maximize Labor Day Savings With the Right Credit Card

Tips To Maximize Labor Day Savings With A Credit Card
Marcie Geffner

Written by: Marcie Geffner

Marcie Geffner
Marcie Geffner

Marcie Geffner is an award-winning reporter, editor, and writer. Her stories about banking, credit cards, insurance, economics, small business, and other subjects have been featured by the Los Angeles Times, Washington Post, Bankrate, Credit Karma, Bookmarks Magazine, FOX Business, CNBC, Yahoo! Finance, and dozens of major U.S. newspapers. Her articles have been cited in seven nonfiction books and two U.S. Congressional hearings. She edits nonfiction, memoir, and fiction, and contributes to Kirkus Reviews. Marcie holds a bachelor’s degree in English from UCLA and MBA from Pepperdine University.

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Edited by: Lillian Guevara-Castro

Lillian Guevara-Castro
Lillian Guevara-Castro

Lillian Guevara-Castro brings more than 30 years of editing and journalism experience to the CardRates team. She has written and edited for major news organizations, including The Atlanta Journal-Constitution and the New York Times, and she previously served as an adjunct journalism instructor at the University of Florida. Today, Lillian edits all CardRates content for clarity, accuracy, and reader engagement.

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Reviewed by: Ashley Fricker

Ashley Fricker
Ashley Fricker

Ashley Fricker has more than a decade of experience as a finance contributor and editor, and has specialized in the credit card industry since 2015. Her credit card commentary is featured on national media outlets that include CNBC, MarketWatch, Investopedia, and Reader's Digest, among many others. She has worked closely with the world’s largest banks and financial institutions, up-and-coming fintech companies, and press and news outlets to curate comprehensive content and media. Ashley holds a bachelor's degree in multimedia journalism from Florida Atlantic University.

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Advertiser Disclosure

Labor Day sales offer a treasure trove of great deals. Whether you’re shopping for the coolest furniture, the latest electronics, the hottest fall fashions, or something else, you may find it on sale at an excellent price around this time of the year.

You could shop with cash, of course. But paying for your purchases with your favorite cards could make your Labor Day shopping more convenient and rewarding, especially if you plan ahead and use these six easy tips to maximize your card benefits during the sales.

1. Rack Up Rewards By Aligning Your Spending

Credit cards can give you a wealth of valuable rewards, from cash back and points to free flights and hotel stays. But you’ll only get these rewards — and the fun of earning and redeeming them — if you shop with cards that have a rewards program.

Steps to maximize credit card rewards

If you haven’t redeemed any rewards in a while, you may not be using the rewards cards that best fit your spending. 

Maybe your rewards preferences have changed, you had some credit issues that are now resolved, or you haven’t had time to shop for new cards. Whatever the reason, Labor Day sales can provide a great incentive to update your cards so you’ll earn the rewards you really want and will feel excited to redeem.

2. Cash In on Signup Bonuses

Paying for your purchases with a rewards card isn’t the only way to earn extra cash when shopping for Labor Day sales. You may be able to add on an even larger reward, such as $200 cash back or 75,000 airline miles, by applying for a new card with a signup bonus.

To earn a signup bonus, you’ll typically have to use your new card to pay for a certain minimum dollar amount of purchases within the first few months after your account is opened. A higher minimum spending requirement generally nets a bigger bonus, but even a relatively modest amount spent, such as $1,000 within three months, could earn this type of reward.

Spend big on this year’s Labor Day sales with a new card, and you could earn a signup bonus while you rack up card rewards and save money on your purchases.

3. Add Co-Branded Cards to the Mix

Having a favorite card doesn’t necessarily mean you should always use that card to pay for everything you purchase. If you’re planning to shop online at a big-box outlet this Labor Day, but don’t have the merchant’s credit card, signing up for one may open the door to more rewards and savings. 

Screenshot of the Target RedCard
Merchant credit cards, including the Target RedCard, can provide additional savings on purchases.

The same opportunity exists with co-branded travel cards. Use these cards to pay for your Labor Day travel expenses, and you could earn extra points toward airline tickets, hotel stays, restaurant meals, and entertainment. Use your travel rewards to extend your trip, or save them for the next time you travel.

4. Get Extended Warranties at No Extra Cost

Products that break after you buy them can be a huge bummer, especially if there’s no manufacturer’s warranty or it’s expired. Extended warranties add more time to the manufacturer’s covered repair or replacement period. 

Extended warranties can be costly to purchase through the merchant when you buy the product. On the other hand, they can be totally free if you use a card that offers extended warranty protection when you make your purchase.

Before you decide which extended warranty card to use for this year’s Labor Day sales, double-check the fine print. Most cards limit the dollar value of the extended warranty coverage and have other exclusions. 

Always save your receipts so that if your product breaks, you can prove where you purchased it, how much you spent on it, and that you used your card for the transaction. If none of your current credit cards have a good extended warranty benefit, you may want to apply for this type of card soon.

5. Shop Interest-Free with 0% APR Cards

If you’re carrying a balance and paying interest charges on one or more of your cards, a new card with a 0% annual percentage rate (APR) for new purchases could empower you to shop Labor Day sales without adding to your monthly interest expense, even if you carry a balance on your new card. 

That’s because 0% promotional APR cards let you make purchases now and pay for them later with no interest for a set period, typically up to 18 months, before your card’s regular APR is applied.

Bank of America® Customized Cash Rewards credit card Review

at Bank Of America’ssecure website

0% INTRO APR RATING

★★★★★
4.8

OVERALL RATING

  • $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
  • Earn 3% cash back in the category of your choice, automatic 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases) and unlimited 1% on all other purchases.
  • Choose 3% cash back on gas and EV charging station, online shopping/cable/internet/phone plan/streaming, dining, travel, drug store/pharmacy or home improvement/furnishing purchases.
  • If you’re a Bank of America Preferred Rewards® member, you can earn 25%-75% more cash back on every purchase. That means you could earn 3.75%-5.25% cash back on purchases in your choice category.
  • No annual fee and cash rewards don’t expire as long as your account remains open.
  • 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 18.24% – 28.24% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 4%.
  • Contactless Cards – The security of a chip card, with the convenience of a tap.
  • This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% Intro APR for 15 billing cycles for purchases
0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days
18.24% – 28.24% Variable APR on purchases and balance transfers
$0
Excellent/Good

Additional Disclosure: Bank of America is a CardRates advertiser.

Bank of America® Unlimited Cash Rewards credit card Review

at Bank Of America’ssecure website

0% INTRO APR RATING

★★★★★
4.8

OVERALL RATING

  • $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
  • Earn unlimited 1.5% cash back on all purchases.
  • If you’re a Bank of America Preferred Rewards® member, you can earn 25%-75% more cash back on every purchase. That means you could earn 1.87%-2.62% cash back on every purchase with Preferred Rewards.
  • No annual fee.
  • No limit to the amount of cash back you can earn and cash rewards don’t expire as long as your account remains open.
  • 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 18.24% – 28.24% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 4%.
  • Contactless Cards – The security of a chip card, with the convenience of a tap.
  • This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% Intro APR for 15 billing cycles for purchases
0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days
18.24% – 28.24% Variable APR on purchases and balance transfers
$0
Excellent/Good

Additional Disclosure: Bank of America is a CardRates advertiser.

Bank of America® Travel Rewards credit card Review

at Bank Of America’ssecure website

0% INTRO APR RATING

★★★★★
4.8

OVERALL RATING

  • Earn unlimited 1.5 points per $1 spent on all purchases, with no annual fee and no foreign transaction fees and your points don’t expire as long as your account remains open.
  • 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening – that can be a $250 statement credit toward travel purchases.
  • Use your card to book your trip how and where you want – you’re not limited to specific websites with blackout dates or restrictions.
  • Redeem points for a statement credit to pay for travel or dining purchases, such as flights, hotel stays, car and vacation rentals, baggage fees, and also at restaurants including takeout.
  • 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 18.24% – 28.24% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 4%.
  • If you’re a Bank of America Preferred Rewards® member, you can earn 25%-75% more points on every purchase. That means instead of earning an unlimited 1.5 points for every $1, you could earn 1.87-2.62 points for every $1 you spend on purchases.
  • Contactless Cards – The security of a chip card, with the convenience of a tap.
  • This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% Intro APR for 15 billing cycles for purchases
0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days
18.24% – 28.24% Variable APR on purchases and balance transfers
$0
Excellent/Good

Additional Disclosure: Bank of America is a CardRates advertiser.

A new 0% APR card may not make sense for you if you’re struggling to make your current card payments and you won’t be able to pay off any charges on a new card before the promotional rate ends. But if you’re comfortable with your balances and can handle more debt or pay off any new charges within the promotional period, a 0% APR card may be worth a look for this year’s Labor Day sales.

6. Boost Your Rewards in Shopping Portals

Online shopping portals give you access to special deals and extra rewards when you make purchases through the portal rather than the merchant’s website. Portals are operated by credit card companies and third-party operators.

Be sure to read the rules before you use a portal to make a purchase to score additional cash back or other card rewards. Portals generally have specific requirements and restrictions that may apply to your purchase.

If you’re good to go, all you need to do to boost your rewards is log in to the portal and shop with your card. You’ll earn your card rewards, and you’ll get a bonus because you used the portal. 

In effect, it’s a double dip, with or without a Labor Day sale, and who doesn’t love that?

The First Monday in September

Labor Day is a US holiday that’s observed every year on the first Monday in September. The holiday honors the American worker’s skills, achievements, and contributions to the nation’s strength and prosperity.

Parades, picnics, and parties are traditional ways to celebrate Labor Day. In modern times, shopping Labor Day sales has become a tradition as well. The right cards and these tips can make your Labor Day holiday even more rewarding.

Advertiser Disclosure

CardRates.com is a free online resource that offers valuable content and comparison services to users. To keep this resource 100% free, we receive compensation for referrals for many of the offers listed on the site. Along with key review factors, this compensation may impact how and where products appear across CardRates.com (including, for example, the order in which they appear). CardRates.com does not include the entire universe of available offers. Editorial opinions expressed on the site are strictly our own and are not provided, endorsed, or approved by advertisers.