The holiday season often brings with it major sales events, which can encourage people to buy gifts or finally buy those items they’ve been eyeing for the entire year. To make shopping much more convenient during this hectic period, many shoppers opt to use their credit cards to pay for their purchases quickly rather than be held up in the cashier counting bills or worrying about the delivery rider not having enough change.
If you’re among those who take advantage of these sales, then you’ll also know how easy it can be to go over your budget if you don’t manage your credit card spending wisely. To help you out, here are some strategies you can use to maximize your credit card rewards and also make shopping more budget-friendly during holidays and sales:
1. Know Your Credit Card Benefits
More than just letting you shop without cash on hand, credit cards also come with various rewards and perks that could get you additional savings as you shop. For example, you can check if your credit card provider has partnerships with certain establishments so you can get exclusive discounts and other perks.
Another great card benefit you can utilize are cashback offers. Maya’s Landers Cashback Everywhere Credit Card, for instance, can help you save up on your holiday grocery shopping with their cashback rewards that can reach up to 5% at Landers when you reach a minimum total credit card spend of PHP 50,000. You can also get 2% cashback on dining and 1% cashback on other qualified spends. If you’re going to spend quite a lot during sales or the holiday season, then using a credit card that provides cashbacks at least lets you earn back some of your expenses.
2. Use Your Card for Bonus Categories
Credit card rewards programs are structured in such a way that you earn points each time you spend a certain amount. You can then use these points to redeem vouchers, discounts, gifts, or even fee waivers from your credit card provider’s reward catalog. While you can just spend on almost any kind of purchase and still expect to earn points, the best strategy to rack up points faster is to take advantage of bonus spending categories.
Bonus categories are certain shops or types of products that reward you with more points than usual. For instance, a credit card may offer twice the reward points earned for online shopping expenses or more cashback on groceries. This incentivizes you to shop for your holiday gifts online or buy more food and ingredients from a specific supermarket. Knowing which expenses are considered bonus categories by your credit card helps you earn more points and obtain rewards much faster.
3. Monitor Seasonal or Limited-Time Offers
Both credit card providers and retailers offer seasonal or time-limited promos as well, so make sure you monitor announcements on their website and social media platforms. For instance, some credit cards will give more reward points a week before the holidays; meanwhile, online shopping platforms have their usual “double digit” sales, where credit card holders can make use of vouchers and other discount codes. If you’re up to date with these seasonal promotions, then you can time your holiday shopping just right to make sure you get bonus points.
Other seasonal credit card promos also include discounts on certain airlines and accommodations for a limited period. So, if you’re planning to travel during the holidays, watch out for these promos and use your credit card when paying to qualify for the discount.
4. Take Advantage of Installment Options
If you anticipate making big-ticket purchases such as electronics or gadgets during the holidays, then consider taking advantage of installment options through your credit card. Spreading out the cost of the item over several months can make the purchase lighter on the pocket, especially if you can get a 0% installment offer to go with it.
Do keep in mind that this shouldn’t be an excuse to purchase items you don’t exactly need. While the flexible payment options that credit cards offer can be incredibly helpful in budgeting, you still need to be aware of responsible card usage.
5. Don’t Let Interest Charges Pile Up
In relation to the previous point, unpaid credit card bills can rack up interest charges, which can only make it difficult for you to pay them in the long run. Always keep track of your holiday and sales expenses and see to it that they’re still within your budget. This way, you can ensure that you have the means to pay your outstanding credit card bills and avoid incurring any additional fees. To help with your credit card bill management, consider using a budget tracker where you can log and categorize all your expenses.
Shopping during the holiday season or during major sales can definitely be exciting, but make sure you’re also shopping wisely by taking advantage of the perks and benefits of your credit card. With the tips above, you can enjoy additional savings from your holiday purchases while also avoiding the hassle of interest charges and other fees.
