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Most credit cards make it easy to cash in rewards for gift cards, statement credits, or merchandise, but it’s usually not the best deal.

If you have a stash of credit card rewards, you can use them to save money on holiday shopping.
Many rewards credit cards let you cash in points for statement credits, merchandise, and gift cards.
However, using a new card for holiday expenses can help you earn a large welcome bonus.
Read Insider’s guide to the best credit cards for online shopping.

The holiday shopping season is upon us, and while it may look a little different post-pandemic with online shopping remaining popular, many of us will be looking for ways to save on gifts and other purchases during this notoriously expensive season.

If you have a stash of credit card rewards, you could redeem some of them to offset purchases, from gift cards to merchandise to getting cash back as a statement credit.

But is it better to use your credit card rewards now, or save them for travel down the line?

We’re focused here on the rewards and perks that come with each card. These cards won’t be worth it if you’re paying interest or late fees. When using a credit card, it’s important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.

Should you use credit card rewards to save money on holiday spending?

Should you really be using your rewards to cover your holiday shopping bill? That’s really up to you, but there’s certainly nothing wrong with this strategy.

A lot of people save up their cash back or travel points for a splurge they really want — or for a luxurious trip when they’re ready to travel — but if you’d like help covering holiday bills, it could absolutely make sense to redeem them to lower your out-of-pocket costs.

On the other hand, if you aren’t worried about cash flow, now could be the perfect time to open a new card to earn rewards you can use later on — …read more

Source:: Business Insider


Credit card rewards can save you money on holiday shopping, but you may be better off saving them for travel

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