The holiday season is a time of giving.
It's also a time that you may end up spending your way toward credit card debt.
The good news is that you can use credit cards to your advantage and earn some amazing rewards.
Here's what you need to know.
1. Use one credit card for certain purchases
For example, if you use a credit card for holiday spending, and many people do, then consider using one credit card for all your purchases.
Why?
When you use one credit card, it keeps you organized. You can see all your spending in one place - so there is full transparency.
Better yet, don't charge anything else on that credit card. This way, you monitor your purchases and not get distracted with other expenses.
Similarly, you could use one credit card for food and entertainment or one for gas purchases. The goal is to stay organized and also maximize credit cards rewards categories.
2. Get a travel rewards credit card
If you're going to spend money, you might as well get rewards.
The best travel rewards credit card will essentially pay you money - in the form of travel rewards - for every dollar you spend.
Free flights, free hotel stays and other travel benefits are some of the perks you can get with the best travel rewards credit cards.
While there are many travel credit cards from which to choose, there are two travel rewards credit cards that continually rank at the top:
Capital One® Venture® Rewards Credit Card
Sign-Up Bonus: 50,000
Fees: $95, but waived the first year
Rewards: 10x miles on thousands of hotels; 2x miles on every day purchases
Chase Sapphire Preferred® Card
The Chase Sapphire Preferred Card is one of the most popular travel rewards cards.
Sign-Up Bonus: 50,000
Fees: $95, but waived the first year
Rewards: 2x miles on travel and dining; 1 point per dollar spent on all other purchases
3. Get a cash back rewards credit card
For every dollar you spend, you can earn 1-2% cash back with cash back credit card. The good news is you can earn even higher cash back rewards on certain categories such as groceries, gas, restaurants and more.
Plus, you can use the cash back to pay off your credit cards.
Here are two cash back credit cards that consistently rank highly:
Discover it® Cash Back
With no annual fee, the Discover it Cash Back credit card will match all cash back earned during your first year.
You earn 5% cash back each quarter based on rotating categories (up to $1,500 spent quarterly). Rotating categories include everything from gas stations and restaurants to grocery stores and wholesale clubs.
At the end of your first year as a cardholder, Discover matches the 5% cash bonus, which means you can earn up to 10% cash back in your first year.
Plus, you earn an unlimited 1% cash back on all your other purchases.
You also can transfer an existing credit card balance to this card and pay 0% APR for 14 months.
Chase Freedom® And Chase Freedom® Unlimited
With no annual fee, the Chase Freedom credit card offers 5% cash back in multiple categories.
The categories rotate each quarter, plus you'll have access to Chase Ultimate Rewards. You can earn 5% cash back up to $1,500 of spending each quarter.
Plus, you'll earn an unlimited 1% on all your other purchases.
You also can transfer an existing credit card balance to this card and pay 0% APR for 15 months.
If rotating categories are not your thing, you can opt for the Chase Freedom Unlimited® credit card, which gives you 1.5% cash back on every purchase.
4. Get a 0% APR credit card
If you want to defer your credit card payments, a 0% APR credit card can help you manage your expenses.
With the best 0% APR credit cards, you can transfer your existing credit card debt with 0% APR for a certain period (such as 12-18 months). Plus, your new purchases will also have 0% APR for a certain period.
Each month, you should pay at least the minimum payment. You will also want to pay back the full balance before the 0% APR period ends.
The best 0% APR credit card include:
Chase Freedom Unlimited®
Sign-Up Bonus: $150
0% APR: 15 months
Annual Fee: None
Rewards: 1.5% cash back on all purchases
Capital One® Quicksilver® Cash Rewards Credit Card
Sign-Up Bonus: $150
0% APR: 15 months
Annual Fee: None
Rewards: 1.5% cash back on all purchases
Wells Fargo Platinum Visa® Card
0% APR: 18 months
Annual Fee: None
Bottom Line
The season of giving doesn't have to be a financial struggle. With the best credit cards, you can minimize the impact of your purchases. manage your debt, and earn great travel rewards, cash rewards and even 0% APR rewards in the process.
