It’s the most wonderful time of the year! Also the most expensive. And the busiest. But with a little strategy, you can use the busyness to take some bite out of the expense. How? By making sure you’re getting the maximum cash back for all the gift-giving, grocery shopping, show-going, dining out, and hosting and visiting you’re squeezing in to the holiday season.
Step 1: Diversify Your Cash-Back Credit Cards
By now you’re probably getting offers for cash-back credit cards by the handful. And they keep getting more complicated, with higher rates for spending within certain categories, or at specific stores, or during scheduled times of the year. And of course, the cards with the best returns for some things tend to have the worst returns for everything else.
My recommendation: Leverage all these options with three or four cards, enough to make sure you’re getting a good variety of deals but not so many that keeping track of them becomes a full-time job. Look for one with a good universal cash-back rate of 2% or more and a few with great cash-back rates of 4% or more in your biggest spending categories or at your most-frequented retailers. You can put a small sticky note on each one to help you remember which to use when.
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Here are a few of the best ones:
The Discover it Card offers a blanket 1 percent cash back on most items, and 5 percent on quarterly categories, like restaurants and Amazon, on up to $1,500 in purchases, which comes out to $75 per quarter. It has no annual fee and will double all the cash back you earn during your first year. And the first 10 readers who sign up through this link will each receive a $50 bonus credit after making a purchase within three months of acceptance.
Paypal’s Cash-Back Mastercard gives a blanket 2% on all spending with the card and has no annual fee.
Capital One’s Savor Rewards Card, designed with foodies in mind, offers 4% back on dining and entertainment, 2% at grocery stores, and 1% for everything else. The annual fee of $95 is waived for the first year. It is currently offerring a tidy bonus of $500 when you spend $3,000 in your first three months.
The U.S. Bank cash+ Visa Signature Card gives you 5% back, up to $2,000 per quarter, on two categories of your choosing, 2% on one everyday category, like gas or groceries, of your choosing, and 1% on everything else. It has no annual fee and is currently offering a 0% APR for your first 12 months and a $150 bonus if you apply online and spend $500 in your first 90 days after approval.
The Amazon Prime Rewards Visa Signature Card gives you 5% back on purchases at–you guessed it!–Amazon, as well as Whole Foods, 2% at restaurants, gas stations, and drug stores, and 1% for everything else. It has no annual fee and, as of this writing, will give you a $70 Amazon gift card as soon as you’re approved.
Step 2: Sign up for Cash-Back Rewards Programs
Cash back from your card issuer is just the beginning. There are apps out there that will give you even more back for your spending. For example:
eBates pays you up to 12% cash back for shopping online, and sometimes in-store, at more than 2,500 retailers as well as for making travel arrangements, so you can take a bite out of those holiday vacation costs.
ibotta is a popular program that gives back for your day-to-day shopping at hundreds of grocery and drug stores, as well as eBay and more. Run out of wrapping paper or need supplies for holiday baking? Look for the best deals on ibotta.
Step 3: Come Clean with Gift Cards
What about clearing drawers of all those gift cards people gave you from stores where you never shop? Sign up at Gift Card Granny and find your offers for up to 92% of their value, payable to you via check, ACH, or PayPal.
Step 4: Keep Track of Your Cash Back
You’re only going to know how much extra cash you’ve earned in this busy season if you keep track. So I’ve created a simple printable sheet for you to record the cash coming your way and check it off when it’s in your hands. Click here to access it.