The holidays are a time for celebration, gift-giving, and—let’s be honest—spending money. Between the gifts, food, travel, and festive outings, your wallet can take a serious hit. But here’s a little secret: if you play your cards right (pun intended), you can actually make your credit card work for you during the holiday season.
Maximizing your credit card points isn’t just for frequent travelers or big spenders—there are simple, smart strategies anyone can use to rack up rewards and stretch their budget further.
1. Know Your Bonus Categories (and Time Your Purchases)
Not all credit card points are created equal. Many cards offer bonus points or cash back in certain spending categories—like groceries, dining, or travel—especially during the holiday season. The key is to know where you’ll earn the most points and time your purchases to get the maximum rewards.
- Identify your card’s bonus categories: Check your card’s terms to see if there are rotating or seasonal bonus categories that offer higher points rates. Some cards, like the Chase Freedom Flex or Discover It, offer 5% cash back in specific categories that change quarterly—often including popular holiday spending areas like groceries, dining, or online shopping.
- Time high-spend purchases: Once you know your card’s bonus categories, align your holiday shopping with them. If your card offers 5x points on groceries in December, stock up on holiday food and treats during that period.
- Prepay or buy gift cards: If your bonus category includes restaurants or gas, and you’re not sure you’ll hit the spending limit, consider buying gift cards to use later. You’ll lock in the bonus points while covering future expenses.
Tip: If you have multiple cards with different bonus categories, create a quick cheat sheet or keep a note on your phone with which card to use for specific types of purchases. That way, you’re always earning maximum points.
2. Leverage Welcome Bonuses for Big Holiday Purchases
The holidays are a time when spending naturally increases—so why not take advantage of that by applying for a new credit card with a generous welcome bonus? If you’ve got a big purchase on the horizon, this could be the perfect opportunity to hit that spending threshold and score a hefty points bonus.
- Find a card with a strong welcome offer: Many credit cards offer bonus points if you spend a certain amount within the first few months of opening the account. These bonuses can be worth hundreds of dollars in travel or cashback, making them ideal for holiday spending.
- Plan big purchases: Whether it’s a new TV, plane tickets for a family visit, or holiday gifts, make sure you put these expenses on your new card to meet the spending requirement for the welcome bonus.
- Be strategic about timing: Open the card at least a month before the holidays start so you’re ready to use it as soon as the holiday expenses roll in. This gives you more time to hit the spending minimum without rushing.
Just be mindful not to overspend just to hit the bonus. Make sure you’re spending on things you already need or were planning to buy. The welcome bonus is great, but only if you’re not incurring unnecessary debt to earn it.
3. Stack Your Rewards with Online Shopping Portals
If you’re doing most of your holiday shopping online (which, let’s be honest, most of us are), you can stack rewards by shopping through your credit card’s online portal or using cashback apps. This simple step can double or even triple your rewards for the same purchase.
- Shop through your card’s online portal: Many major credit card companies have shopping portals where you can earn extra points for shopping with specific retailers. You could earn 5x or 10x points on top of what you’d normally earn by just going through the portal.
- Combine with cashback apps: Use apps like Rakuten or Honey to stack additional cash back on your purchases. For example, if your credit card’s portal offers 5x points at a retailer and Rakuten offers 3% cash back, you’re essentially getting double rewards on the same purchase.
- Add browser extensions: Rakuten and other cashback platforms often have browser extensions that notify you of available offers while you shop. It’s a quick, hassle-free way to ensure you’re not missing out on extra points.
Always check your online shopping portal and Rakuten before making any holiday purchases. Sometimes, you’ll find even better deals, like additional discounts or free shipping, which can further stretch your holiday budget.
4. Use Points for Holiday Travel (But Be Smart About It)
Holiday travel can get expensive fast, especially if you’re flying home to see family or taking a vacation to escape the winter cold. But instead of paying cash, use your credit card points for flights, hotels, or rental cars. With a little planning, you could cover most—if not all—of your travel costs with points.
- Redeem points strategically: If you’ve been building up a stash of points, the holidays are the perfect time to use them. But don’t redeem points on a whim—do your homework to make sure you’re getting the best value. For example, using points to book flights directly through the airline might give you more value per point than booking through a third-party travel site.
- Transfer points to partners: Some credit cards, like Chase Sapphire Preferred or Amex Gold, allow you to transfer points to airline and hotel partners. In many cases, this can stretch your points further, giving you more value than if you book directly through the credit card’s travel portal.
- Book early: Holiday travel gets more expensive as you get closer to your departure date. If you’re planning to use points, book early to avoid point inflation and snag the best deals.
Tip: Compare the value of your points across different platforms before redeeming them. A flight that costs 20,000 points on one site might cost only 15,000 points through an airline’s loyalty program. Always look for the best conversion rate.
5. Redeem Points for Gift Cards (or Gifts)
If you’re not traveling this holiday season or don’t have any major expenses coming up, one of the easiest ways to maximize your points is by redeeming them for gift cards or even holiday gifts. This can save you money on gifts for others—or let you treat yourself without dipping into your budget.
- Gift cards for holiday shopping: Many credit cards offer the option to redeem points for gift cards to popular retailers like Amazon, Target, or Starbucks. If you’re planning to shop at these places anyway, redeeming points for gift cards is a smart way to stretch your holiday spending.
- Use points for actual gifts: Some credit card rewards programs, like Chase Ultimate Rewards or American Express Membership Rewards, have an online marketplace where you can use points to purchase gifts directly. Think electronics, gadgets, and other holiday favorites—all bought with points instead of cash.
- Check for holiday promos: Credit card companies often run holiday promotions where you get more value when redeeming points for gift cards or gifts. Keep an eye out for these deals in your account dashboard.
While redeeming points for gift cards can be convenient, make sure you’re getting a good value. In some cases, redeeming points for cash back or statement credits might offer a better deal, so always compare the options.
6. Pay Off Holiday Bills with Points or Cashback
The holiday season often brings a higher credit card bill, but one way to soften the blow is by using your points or cashback to pay off those extra expenses. This tactic helps you avoid post-holiday debt and makes sure you don’t carry a balance into the new year.
- Use points for statement credits: Many credit cards let you redeem points or cashback as statement credits. This can directly reduce the amount you owe, which is especially useful if your holiday spending gets a little out of hand.
- Plan for a cashback boost: Some cards, like the Citi Double Cash or Chase Freedom, allow you to redeem cashback for purchases made during the holiday season. Cashing in those rewards right after the holidays can help you cover extra expenses without dipping into your savings.
Be mindful of the redemption rate when using points for statement credits. Some cards offer a better rate when redeeming points for travel or gift cards, so make sure you’re maximizing the value of your points based on your needs.
7. Pool Points with Family or Friends
This hack works especially well during the holidays when you’re likely spending more on group activities, travel, or gifts. If you and your family or friends use the same credit card provider, you may be able to pool points together to maximize rewards or cover a bigger purchase.
- Combine points for a big purchase: Some credit card companies, like Chase and Amex, allow family members or authorized users to pool points. This is great if you’re planning a group trip or want to split the cost of a big-ticket item. By combining your points, you can cover the cost with minimal cash outlay.
- Gift points to each other: Some programs let you transfer points between accounts for free or at a low cost. If a family member is short on points for a big holiday purchase, you can transfer your points to them so they don’t miss out on the reward.
Tip: Always check the rules for point transfers or pooling. Some programs allow free transfers between family members, while others might charge a fee or limit the number of points you can transfer.
8. Use Referral Bonuses to Earn Extra Points
You don’t have to stop earning points just because you’ve hit your card’s bonus categories. One of the easiest ways to rack up extra points during the holidays is by referring friends or family to your credit card. Many cards offer substantial bonus points when someone you refer gets approved.
- Share referral links: Most credit card companies offer referral programs that reward you with points or cash when someone signs up using your link. Share your referral code with friends or family members who might be in the market for a new card, especially if they’re looking for one with good holiday bonuses.
- Leverage the holiday spirit: With people more likely to be shopping and spending during the holidays, this is the perfect time to recommend cards that offer great rewards. You benefit from the referral bonus, and they benefit from the points or cashback on their holiday spending.
Before referring, make sure the card you’re recommending is a good fit for the person. The more aligned it is with their spending habits, the more likely they are to be approved—and for you to get those extra points.
Maximize Your Holiday Cheer
The holiday season is prime time to rack up credit card points and make the most of your spending. By strategically using bonus categories, welcome offers, and shopping portals, you can maximize your points without changing how you spend.
Whether you're covering travel costs, buying gifts, or paying off post-holiday bills, these eight tips will help you stretch your budget and turn your holiday spending into real rewards.
The key to winning this game is planning and being intentional with your purchases. Make sure you're using the right card for the right expenses, and always keep an eye on promotions or opportunities to stack rewards.
