Editor’s note: This is a recurring post, regularly updated with new information.
Now that we’ve reached November, the Black Friday holiday season is just a few weeks away. Early November also means we’re entering the final stages of elite status in many loyalty programs, and we’re just months away from a new year and a new slate.
Then there’s Christmas shopping. Whether you’ve already started your holiday shopping or typically wait until the last minute to cross gifts off your list, there are steps you can take now to start formulating your holiday shopping strategy. Not only will you have less to worry about as we get closer to December 25, but your holiday shopping can also help you meet your spending, elite status, and miles/points goals.
Here are three things to think about this November before making your first holiday purchase.
Earn the most points for purchases
While your budget can certainly take a hit during the holidays, the money you spend can go a long way toward earning free travel in 2024. However, earning the most points and miles requires a little more strategy than simply grabbing the best credit . card when you click “buy” or open your wallet in the store.
There’s a good chance that some (if not many) of the gifts you’re considering buying will end up at stores where you only earn one point or mile per dollar, and won’t fall into one of the more lucrative bonus spending categories that you can earn money from. up to 3, 4 or 5 points or miles per dollar spent. When making these purchases, you’ll want to use a credit card with the best earning potential for your everyday spending for many of your gift purchases.
At the same time, if you make large purchases and they don’t fit into a bonus category with one of your cards, look for ways to stack your earnings through unconventional purchasing options.
For example, let’s say you want to buy an expensive shirt from a popular clothing brand like Vineyard Vines. The cards in your wallet may only earn 1 point per dollar at that retailer. However, there are ways to increase your points or miles earnings by making the purchase through an airline shopping portal or other site where you can earn 2 or more miles per dollar.
You can also try going through third-party sites like Amazon (if you get bonus points for spending on Amazon) or even buy a gift card at the grocery store to spend on your holiday purchases if groceries are a bonus spending category for you (just make sure purchases with gift vouchers are eligible for a bonus with your credit card).
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One TPG editor’s strategy is based on checking the active offers for each of its cards.
“For the holidays, I check which cards in my wallet at certain retailers are offering cash back or statement credit offers and then order gifts based on those current offers. In recent years, I have received statement credits of more than $150 by taking advantage of promotions through retailers like Macy’s, Duluth Trading Co., Sephora, wine subscriptions and more,” said Daisy Hernandez, TPG credit card editor.
Focusing on an elite status level
In addition to earning free travel for next year, your credit card spend can also count toward elite status in some loyalty programs. As 2023 draws to a close, your Christmas gift spending could be a way to secure elite status for the year ahead.
American Airlines’ AAdvantage program is a good example. The American Loyalty Points system makes co-branded credit card spend count toward AAdvantage elite status.
Personally, it remains to be seen whether I will qualify for AAdvantage Platinum status by the end of the qualification period at the end of February. To have any chance of reaching that level, I’ll need to put a large portion of my holiday gift purchases on my Citi®/AAdvantage® Platinum Select® World Elite Mastercard®, which gives me 1 Loyalty Point per dollar spent (plus AAdvantage miles ) can earn. ).
Members with a co-branded card from other airline loyalty programs can similarly achieve elite status even through their non-airline spending, and some co-branded hotel cards can help members work their way to elite status through of benefits such as elite night credits.
Once you’ve taken stock of your progress toward elite status and determined that you’re on the cusp of qualifying (or not) for a certain level at the end of the year, you can put your holiday spending on your card to help you get there come to help. pay out in the form of airline or hotel benefits during your travels in 2024.
Add a card
Since the holidays are a time of year when we spend a lot, it can be a good time to open a new credit card. After all, chances are you’ll have no problem spending enough money to qualify for the welcome offer, as it varies depending on the card you choose.
As always, you want to choose a card that gives you the best benefits and returns for your spending habits and travel needs – whether it’s a card that gets you access to airport lounges and hotel elite status, such as The Platinum Card® from American Express or one that gives you bonus points on everyday purchases like the Capital One Venture Rewards Credit Card.
If you’ve been putting off applying for a card for fear that your normal spending might not be enough to meet the welcome offer – and you always want to make sure you meet that threshold – the holidays could be the time to make your move. that step.
In short
There are only a few weeks left before the holiday shopping season kicks into high gear. Even if you’re still collecting wish lists from loved ones, it’s a good idea to start planning. Your expenses can go a long way toward improving future trips or earning those trips at no out-of-pocket expense.
Strategizing your spending in November will help you make the right decision next month when the cashier rings up your purchases.