We’re a few weeks away from the official start to the holiday season, and if you’re like a lot of people, you might not even think about buying gifts until then. But preparing in advance of Black Friday can help you find the best deals.
Planning how you’ll pay for your purchases can also help you reduce your costs. You might already have a top-rated rewards credit card in your wallet. But if you’ve been thinking about opening another one, doing it now could offer four valuable benefits.
1. Better bonus rewards in the categories you need
A great travel rewards card can be a valuable addition to your wallet, especially if you travel frequently, but it may not be what you need for holiday shopping. You could benefit a lot more from having a rewards credit card that offers bonus rewards on department stores or certain online retailers.
Or, if you prefer a card that offers a high cash back rate on all purchases, check out our list of the best cash back credit cards. These cards make it easy to earn rewards no matter where you’re shopping.
Think about where you plan to shop the most during the holiday season and see how that fits with the credit card rewards you currently earn. If you think you’ll be stuck earning a standard 1% cash back on most of your purchases, you may want to add a new card to your wallet before Black Friday to maximize your rewards.
2. A 0% introductory APR
Generally, carrying a balance on a credit card isn’t advisable because it can cause you to rack up expensive debt. Many people wind up in a debt cycle they struggle to get out of and pay considerably more than their original balance due to high interest charges.
However, some credit cards have a 0% introductory rate so they don’t accrue interest at first. The exact amount of time varies by card, but in some cases, it’s more than a year.
One of these cards could be a smart choice for your holiday shopping if you’re confident you can pay back all that you owe before the 0% APR period ends. The best part is, many of these cards offer rewards, too, so you don’t have to choose between cash back and zero interest. Check out some of our favorite 0% intro APR cards to see which could provide you with the biggest savings this holiday shopping season.
3. A sign-up bonus you wouldn’t normally reach
Credit card sign-up bonuses let you earn extra bonus points by meeting certain criteria within the first few months of account opening. Usually, you have to spend a certain amount in that time, and therein lies the challenge. If you don’t spend enough, you might miss out on the bonus.
But the holiday season typically leads to increased spending for most people, so now could be the perfect time to go after that credit card bonus and snag up $300. Read all the fine print before opening the card so you understand exactly what you have to do to earn the bonus.
4. Purchase protections on your items
Sometimes, we buy holiday gifts months in advance. Most stores understand this and adjust their return policies to accommodate the holidays. But this isn’t always enough.
Credit card extended warranties are a huge help if you realize an item you purchased is broken or defective well after the purchase. Your card issuer might pay to have the item repaired or replaced even if the original retailer or manufacturer won’t.
Some credit cards also offer purchase protection, which guards your items against theft or accidental damage for a limited time, and price protection. This reimburses you for the difference if you later find an item that you bought with that card for sale at a lower price. However, you usually have to watch for sales and contact your card issuer to get this refund.
Not all credit cards offer these protections, so you’ll have to check the cardholder agreement to see if yours does. Be sure you understand the limitations these services offer, and contact the credit card issuer if you have any questions.
Remember, it can take a week or more to get your credit card in the mail after you’re approved. If you plan to open a new one before Black Friday, it’s best to act soon. Choose a few cards you’re interested in and compare their perks to determine which one will save you the most this holiday season.
