3 things to consider for your holiday shopping credit card strategy

Now that we’ve reached November, we’re just a few weeks away from the Black Friday shopping holiday. The beginning of November also means we are entering the last paragraph to achieve elite status in many loyalty programs and only a few months until a new year and a new blocking vehicle.

With all that in mind, even if you’re delaying your first Christmas gift purchase until the movies start, there are steps you can take now to start building a strategy. Holiday shopping to help you meet spending, elite status, and goal miles/points.

Here are three things you should think about in November before you make your first holiday purchase.

Earn the most points on purchases

While your budget can certainly take a hit during the holidays, shopping can earn you free travel in 2023. Earn as many points and mileage as you can, However, it requires a bit more strategy than just grabbing the nearest credit card when clicking “buy” or opening your wallet at the store.

There’s a good chance that some – if not many – of the gifts you’re considering buying could be at retailers where you’ll only earn a point or a mile for every dollar, not falling into one. in the more lucrative bonus spending categories can earn you up to 3, 4 or 5 points or miles for every dollar spent. When you make those purchases, you’ll want to use a credit card that can Best earning potential on daily spend for your multiple gift purchases.

Also, if you’re making big purchases and they don’t fit into the bonus category with one of your cards, find a way to accumulate your earnings through unique purchase ways.

For example, let’s say you’re looking to buy an expensive shirt from a well-known clothing brand like Vineyard Vines. Cards in your wallet can only earn you 1 point per dollar with that retailer. However, there are ways to increase the number of points or miles earned by making purchases through Airline shopping portal or another site where you can earn 2 miles or more per dollar.

You can also try switching to third-party sites like Amazon – if you Get bonus points for spending with Amazon – or even buy yourself a gift card at the grocery store to spend on your holiday shopping if groceries are your bonus spending category (just make sure gift card purchases are eligible for rewards with the credit card). your).

Focus on elite status

In addition to earning next year’s free travel, your credit card spending can also counted in elite status in some loyalty programs. As 2022 comes to a close, your spending on holiday gifts could be one way to secure elite status for the coming year.

The American Airlines A Pros program is a great example, here. With senior Americans switch to Loyalty Points system Earlier this year, spending with a co-branded credit card counted towards AAdvantage’s elite status.

Personally, it will be a close interview to see if I qualify for AAdvantage Platinum status at the end of the eligibility period in late February. To have any chance of hitting that level, I’ll need to put a lot of my holiday gift purchases on Citi® / AAdvantage® Platinum Select® World Elite Mastercard®earns me 1 Loyalty Point for every dollar spent (plus Preferred miles).

Co-branded card-members of other airlines’ loyalty programs can also gain elite status through non-airline spending, and some hotel co-branded card can help members work their way to elite status through benefits like elite night credits.

If you take inventory your progress toward elite status and find you’ll be right at the cusp of qualifying – or not – for a particular tier at the end of the year, put your holiday spending on your card will make it possible for you to pay with airline or hotel privileges during your 2023 travel.

Add a card

Since the holidays are a time of year when we tend to spend a lot, it could be a good time to open a new credit card. After all, there’s a good chance you won’t have trouble spending enough to qualify for welcome offer.

As always, you’ll want to choose a card that will give you the best perks and respond to your spending habits and travel needs – whether it’s a card that gives you access to airport lounges and the hotel’s elite status as Platinum Card® from American Express or something that gives you bonus points for everyday purchases like Capital One Venture Rewards Credit Card.

If there is a card that you have delayed signing up for fear that your usual spending may not be enough to reach the welcome offer – and you will always want to make sure you hit that threshold – the holiday season might be the time to take that step.