Tips to maximize credit card rewards when shopping for the holidays

Summary

• Credit card rewards can help offset holiday expenses if you plan your spending carefully.
• Some cards earn higher rewards at selected retailers or in common spending categories, while others offer welcome bonuses that bring extra value.
• Paying your balance in full keeps rewards from being canceled out by interest charges.
• A 0% introductory APR offer may give you flexibility to pay off holiday purchases over time.
• Considering annual fees can help you decide whether a premium card or a no-fee option is a better fit for your budget.

Holiday cheer often comes with a hefty price tag. From gifts to decorations to family gatherings, seasonal spending can add up fast — and this year, shoppers may feel the pinch even more. A recent study found that 40% of consumers expect fewer discounts this season, so finding other ways to stretch your budget may be especially important this year.¹

But discounts aren’t the only way to protect your bottom line. With a little planning, using your credit cards for holiday shopping can turn your purchases into rewards that lighten the load of holiday expenses.

Ways to strategically earn credit card rewards for the holidays

Rewards cards come in many varieties, much like holiday gifts. Some are practical, like cash back that's easy to redeem and put toward your balance. Others are aspirational, like points that turn into travel or experiences.

The key to maximizing reward credit cards for the holidays is knowing which purchases earn you the most rewards and planning your shopping around them. Let’s review a few examples to get you started.

High rewards rate at retailers

Some rewards cards, like the U.S. Bank Shopper Cash Rewards® Visa Signature® Card, let you choose where you’ll earn a higher rewards rate. The card provider gives you a list of eligible retailers, often online and in-store, and you make your selections – usually at the start of a quarter. From there, you earn extra rewards on purchases at those chosen spots.

You’ll want to pick retailers you’re likely to frequent. Depending on your holiday shopping list, that might mean toy stores, home decor, electronics, or even department and discount stores.

High rewards rate in spending categories

Credit cards may also offer higher reward rates in certain spending categories, like groceries, travel or restaurants. In some cases, the card provider determines those categories, so you might earn extra rewards when you fill up your car or shopping for dinner – just not both at once.

Other cards let you choose your top rewards categories, giving you more control over how you earn. The U.S. Bank Cash+® Visa Signature® Card is one example.

Either way, you want to know which of your cards offers the best rewards for your holiday spending. That way, you can reach for it when it counts.

Cash back bonuses

Signing up for a new credit card with a welcome bonus can be a smart financial move, especially if the reward is cash back. Instead of being tied to travel rewards or gift cards, the bonus is money you can put toward paying off your balance or use for other expenses.

Most card issuers require you to spend a certain amount within the first few months to earn the bonus. For example, a card might offer $200 in cash back after you spend $1,000 on eligible purchases within 90 days. Starting your holiday shopping early can help you reach that threshold more easily.

Keep in mind that bonuses often take one or two billing cycles to post to your account. That means your bonus may not be ready for early holiday purchases, but it could be available for last-minute gifts or expenses after the season wraps up.

More tips to maximize holiday cash back on your credit card

Maximizing rewards isn’t just about how much you spend. These tips can help you unwrap more value from your rewards and make the most of your holiday shopping.

Get a card with a Low Intro APR offer.

If you’re thinking of getting a new card for your holiday shopping, consider a credit card with a low intro APR that may help you save money. During the promotional period, you don’t pay interest on qualifying transactions, such as new purchases, balance transfers, or both, depending on the card.

So, imagine getting a credit card like the U.S. Bank Shield™ Visa® Card at the start of the season. You use it for your holiday shopping and have until the end of the promotional period to pay off your balance without interest charges, which may give you a little more flexibility in your holiday budget.

When using a card with a low intro APR offer, you want to be sure to make your regular monthly payments and to have a plan to pay off your balance in full before the promotional period ends. Any balance remaining after the promotional period will accrue interest at the card’s regular rate.

Review credit card annual fees.

Cards with annual fees often come with premium perks, such as higher cash back rates or extra travel benefits. If you shop or travel enough to use those rewards, that value can eclipse the fee.

On the other hand, cards without annual fees usually have simpler reward structures that can make them easier to use. They can be especially smart if you want to keep holiday expenses in check or don’t plan to use the card heavily after the season ends.

The right choice depends on your spending habits. If you use the perks year-round, a card with an annual fee may be worth it. But if you just want straightforward rewards for holiday purchases, a no-fee card may be a better fit.

Making the most of credit cards for the holidays.

Credit card rewards can make your holiday season merry and bright, especially when paired with good credit habits. By choosing the right rewards card, using it thoughtfully and sticking to your budget, you can enjoy the season without added costs from interest or high fees.

Sources

¹ Gartner, “U.S. Holiday Shoppers are Leveraging Online Resources, and Prioritizing Flexible Shopping and Return Options to Maximize Convenience and Value,” https://www.gartner.com/en/newsroom/press-releases/2025-09-02-gartner-finds-u--holiday-shoppers-embrace-hybrid-shopping-and-early-deals-amid-economic-uncertainty, September 2, 2025, accessed September 4, 2025.