Two Smart Ways to Get More from Your Credit Card During the Holidays, According to a Finance Expert

Credit cards typically see a surge in use during the holiday season. The National Retail Federation said 91% of consumers took part in the winter holidays, spending an average of $890 on decorations, gifts and other seasonal purchases.

Many shoppers already understand the basics of responsible card use, such as avoiding the mistake of treating a credit limit like free cash. But how can you make the most of your cards during the holidays and set yourself up for a better payoff later?

Erica Sandberg, a consumer finance expert at CardRates.com, shared two practical ideas to consider before putting holiday purchases on a credit card.

Match Each Purchase to the Right Card

If you carry more than one credit card, take time to review the rewards structure for each one so you know what you can earn on different kinds of spending. Depending on the card, you may receive cashback, points or miles.

With that information in hand, you can choose the most rewarding card for major holiday expenses such as airline tickets or gifts while maximizing the benefits you collect.

Pay the Balance Right Away Instead of Waiting for the Statement

Sandberg’s strongest recommendation for holiday card use is to make the purchase and pay it off immediately, rather than waiting for the billing statement.

“If you charged $150 worth of presents at once, use a payment app like Zelle to send this exact amount to your credit card company,” she said. “No interest will be added to your purchases, and you won’t be faced with expensive debt or monthly payments.”

She added that this habit helps shoppers stay more aware of what they are spending, which matters because holiday buying often becomes impulsive.

“Maybe you want to buy a $1,200 laptop as a gift for your college student child,” Sandberg said. “Great. You will first review your checking account to know that have enough to cover it and be sure it won’t hurt your ability to meet your other expenses.”