Holiday shopping can be a daunting task, especially when working out the financial side of things, if money is tight you will be considering using a credit card to pay back later; either with intention to pay back immediately or gradually over a longer duration of time. Deciding the best credit card is vital to ensure you don’t fall into any traps or debt.
With so many credit cards now available on the market, the choice of which one can be overwhelming; so it’s best to simplify it and work out your requirements – to narrow down what you’re looking for.
If you are planning to pay off your credit card immediately, you want to search for the best reward schemes. E.g. points for additional holiday purchases or travel. Depending on what you’re able to borrow, you can even get cash back deals.
The best credit cards to look for when paying back more long-term, should offer 0% interest in the first 6 – 12 months.
Approach 0% interest credit cards with caution; as the majority are only interest free for a certain amount of time, and can be interest-deferred. It’s vital you know the time period beforehand, as going outside of them can start accumulating interest of up to 20% to 30%, which can leave you stuck with heavy debt.
Best Reward Cards
TrueEarnings Card from Costco and American Express
The best credit card to offer very competitive cash back – you can get 3% cash back on gas, 2% for restaurants and travel plus 1% on other purchases. (Double check your holiday shopping outlets accepts American Express). You must be a Costco member to obtain this Credit Card, but there is no initial fee. If you need more time to pay off your Christmas spending, there is also a 0% interest charge for the first six months in getting the Credit Card. But afterwards, the variable rate is 15.24%.
Walmart Credit Card
The best credit card when it comes to having 1% cash back on any purchase, also offering a statement credit which is issued every time you accrue $5. Another benefit is being able to save 15 cents per gallon of gas at Walmart gas stations; plus you can receive a $5 rebate for every $500 you charge, and offering discounts on the first day of buying the card. It’s a Master Card offered through the synchrony bank, that has no annual fee, but the variable interest rate is 22.90%.
Bank of America Travel Rewards Card
The best credit card for focusing on rewards for holiday shopping; you can benefit from building up travel credits for your next vacation. For every dollar you spend, you accumulate 1.5 points; and even offers you 10,000 points in bonus if spending over $500 dollars in the first 90 days – which is a great reward for holiday shopping! Another benefit, and making things stress free, the credit card has 0% for the first 12 billing circles. Afterwards the variable fee increase is 14.99 then up to 22.99%. Like the other Credit Cards it offers no annual fee, but also has the advantage of no foreign transaction fees. (You can save money if doing your holiday shopping abroad) If you are already a Bank of America customer there’s also extra benefits too.
0% Interest Options
If you are looking to pay back your Credit Card more gradual over a longer period of time, then you will be looking for 0% interest on purchases for the first 6 – 12 months. This can avoid wasting money on accumulated interest; and should be looking to pay off in the duration of no interest. The two reward cards mentioned above; the True Earnings Card, and the Bank of America Travel Rewards Card can also include 0% interest on purchases. In addition to them; there’s also other options that are interest-free, and no interest-deferred Credit cards.
The best credit card for having the longest duration of interest free purchases – which is the first 15 months. You are required to have excellent credit rating to be approved for this Credit Card, but has excellent perks like 0% interest on balance transfers, and having no annual fee. After the introductory period the variable interest rate is either 12.99, 17.99% or 22.99%; depending on your credit score.
Capital One Venture One Rewards Card
The best credit card which offers 0% interest on purchases until December 2015, offering plenty of time to pay off your holiday shopping before any interest accumulates. After the free period, interest will rise to 19.9%, which can earn 20,000 reward miles if you spend over $1,000 on purchases in the first 90 days. Also there is no annual fee on this Credit Card.
The Bottom Line
These are just a few examples of the deals you can find to make your holiday shopping more convenient, as well as advantageous. You may find others that work better for you at your favourite retailers.