Some of the savviest bargain hunters are already planning how to get the most out of their Boxing Day by making big purchases on appliances, electronics, winter gear and more. If you’re looking forward to some major purchases, using the right credit card can make sales a win-win as you earn great rewards for your spending, or by netting you some interest-free time to pay down your bill.
Here are some tips to help you pick out the best credit card before your Boxing Day shopping spree.
Find a great welcome offer
When you know you’re about to spend a lot of money, it’s the perfect time to get a new credit card with a great welcome offer.
Many credit cards will have offers for either a large number of bonus points or several hundred dollars in cash back after meeting set spending minimums. Welcome bonus points can give you a great head start on travel miles for your next flight, while cash can offset the cost of your purchases.
Make sure you seek out an offer that matches the amount you’re looking to spend and don’t overspend just to reach the target amount.
Consider your priorities
Which credit card is right for you will depend on your primary concern when it comes to holiday shopping. In general, there are three ways credit cards can help you get more bang for your buck on Boxing Day:
Low-Interest Credit Cards: A credit card with a low-interest rate, either for an introductory period or as its ongoing purchase APR, is a great way to get the most out of Boxing Day without worrying about having to pay off your card ASAP. A low-interest rate card is the best card for purchases that might leave you with a temporary revolving balance.
Travel Rewards Credit Cards: Travel rewards credit cards often come with amazing welcome offers, which can make them a great choice for a splurge. In addition, while you may not be traveling for a while, getting a new card now should give you plenty of time to earn enough points to cash them in on your next vacation.
Cash Back Credit Cards: Cashback credit cards are a great option for making those Boxing Day discounts even sweeter. It puts money back in your pocket as soon as your next credit card statement, and cashback cards can also come with enticing welcome offers for new cardholders.
Pay attention to rewards categories
Cards differ not only in what type of rewards they offer but also in which categories they have that grant bonus rewards.
Some cards may grant bonus rewards for dining, groceries, gas, or travel, offering as much as double or triple your regular rewards. When choosing the perfect credit card, look beyond that first big purchase to your average spending habits, and try to pick a card that lines up well with your typical charges.
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