Holiday shopping is in full swing, and the earlier you shop this year the better. Before you starting crossing gifts off of your list, consider how you plan to pay for them. A rewards credit card is a simple and effective way to earn cash back or points on all of your gift purchases.
With the best credit cards, you can earn between 2% to 6% cash back (or 2X to 6X points) on popular gifts, as well as food to fuel your holiday festivities.
To make your holiday shopping experience a bit more affordable, check out these 10 cards that reward everything from electronics and clothing to groceries and takeout.
Best credit cards for holiday shopping
- Best for general shopping: Citi® Double Cash Card
- Best for Amazon.com, Target.com, Walmart.com and Best Buy (Nov. 25 - Dec. 31): Discover it® Cash Back
- Best for Apple products: Apple Card
- Best for department stores: U.S. Bank Cash+™ Visa Signature® Card
- Best for wholesale clubs: Costco Anywhere Visa® Card by Citi
- Best for entertainment: Capital One® Savor® Cash Rewards Credit Card
- Best for restaurants, takeout and delivery: American Express® Gold Card
- Best for groceries: Blue Cash Preferred® Card from American Express
- Best welcome bonus: Chase Freedom Flexâ„
- Best for intro 0% APR period: U.S. Bank Visa® Platinum Card
Best cards for holiday shopping FAQs
Best for general shopping
Citi® Double Cash Card
Rewards
2% cash back: 1% on all purchases and an additional 1% after you pay your credit card bill
Welcome bonus
No current offer
Annual fee
$0
Intro APR
0% for the first 18 months on balance transfers; N/A for purchases
Regular APR
13.99% - 23.99% variable on purchases and balance transfers
Balance transfer fee
3%, minimum $5
Foreign transaction fee
3%
Credit needed
Excellent
See our methodology, terms apply.
Pros
- 2% cash back on all purchases
- Simple cash-back program that doesn't require activation or spending caps
- One of the longest intro periods for balance transfers at 18 months
Cons
- No welcome bonus, so you can’t maximize rewards during the first few months of card opening
- Minimum cash-back redemption of $25
- 3% fee charged on purchases made outside the U.S.
- Estimated rewards earned after 1 year:Â $443
- Estimated rewards earned after 5 years: $2,213
Best for Amazon.com, Target.com, Walmart.com and Best Buy
Discover it® Cash Back
Rewards
Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate.
Welcome bonus
Dollar-for-dollar match of all cash back earned the first year
Annual fee
$0
Intro APR
0% for 14 months on purchases
Regular APR
11.99% - 22.99% Variable
Balance transfer fee
3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
Foreign transaction fee
None
Credit needed
Good / Excellent
*See rates and fees and our methodology, terms apply.
Pros
- Cash-back program
- Generous welcome bonus
Cons
- Cash-back categories must be activated each quarter
- Cash-back program limits earnings: Enroll every quarter to earn 5% cash back in various categories on up to $1,500 in quarterly purchases, then 1%
- Estimated rewards earned after 1 year: $707
- Estimated rewards earned after 5 years: $2,120
Rewards totals incorporate the cash back earned from the welcome bonus
Best for Apple products
Apple Card
Rewards
3% cash back on goods or services purchased directly from Apple (including Apple retail stores, the Apple online store, the App Store, iTunes, Apple Music and other Apple-owned properties) on Uber and UberEats, at Walgreens and Duane Reade stores, on the Walgreens app and on Walgreens.com, in T-Mobile stores, at Nike, at Exxon and Mobil stations and at Panera Bread, 2% cash back on Apple Pay purchases and 1% cash back on all other purchases
Welcome bonus
None
Annual fee
$0
Intro APR
None
Regular APR
10.99% to 21.99% variable
Balance transfer fee
None
Foreign transaction fee
None
Credit needed
N/A
See our methodology, terms apply.
Pros
- No annual fee
- 3% cash back on goods or services purchased directly from Apple, on Uber and UberEats, at Walgreens and Duane Reade stores, on the Walgreens app and on Walgreens.com and in T-Mobile stores and at Nike
- No fee charged on purchases made outside the U.S.
- No late payment fee
Cons
- Apple Pay isn’t accepted everywhere
- Purchases with the physical card only earn 1% cash back
- No special financing offers or welcome bonus
- Estimated rewards earned after 1 year: $231
- Estimated rewards earned after 5 years: $1,156
To calculate the rewards you could earn using your Apple Pay card, we assumed that cardholders will use Apple Pay for 70% of their purchases at a rate of 2% cash back, since 70% of all merchants accept Apple Pay, according to an Apple spokesperson. We also assumed the cardholder would use the physical Apple Card for the other 30% of their purchases at a rate of 1% cash back. You may earn a higher or lower return depending on your spending habits.
Best for department stores
U.S. Bank Cash+™ Visa Signature® Card
Rewards
5% cash back on two categories you choose quarterly (on your first $2,000 in combined eligible net purchases each quarter, then 1%); 2% cash back on one everyday category; 1% cash back on everything else
Welcome bonus
$200 after you spend $500 within the first 90 days of account opening
Annual fee
$0
Intro APR
0% APR for the first 12 billing cycles on balance transfers
Regular APR
13.99% to 23.99% variable*
Balance transfer fee
3%, minimum $5
Foreign transaction fee
2% to 3%
Credit needed
Excellent/Good
*See rates and fees and our methodology, terms apply.
Pros
- No annual fee
- High 5% cash back on select entertainment purchases, when you activate bonus categories
- Low spending required to earn a good welcome bonus
Cons
- 5% cash back is limited to $2,000 in combined purchases each quarter
- Activation is required to earn 5% cash back
- 2% to 3% foreign transaction fee
- Estimated rewards earned after 1 year: $478
- Estimated rewards earned after 5 years: $1,790
Rewards totals incorporate the points earned from the welcome bonus
Best for wholesale clubs
Costco Anywhere Visa® Card by Citi
Rewards
4% cash back on eligible gas for the first $7,000 per year (then 1%); 3% cash back on restaurants and eligible travel purchases; 2% cash back on all other purchases from Costco and Costco.com; 1% cash back on all other purchases
Welcome bonus
No current offer
Annual fee
$0, Costco membership required
Intro APR
N/A for purchases and balance transfers
Regular APR
15.24% variable on purchases and balance transfers
Balance transfer fee
Either $5 or 3% of the amount of each transfer, whichever is greater
Foreign transaction fee
None
Credit needed
Excellent
See our methodology, terms apply.
Pros
- Generous gas rewards
- No fee charged on purchases made outside the U.S.
- Reasonable 15.24% variable APR
Cons
- Costco membership is required
- Rewards are distributed once a year and can only be redeemed at U.S. Costco Warehouses
- No welcome bonus, so you can’t maximize rewards during the first few months of card opening
- Estimated rewards earned after 1 year: $406
- Estimated rewards earned after 5 years: $2,031
Best for entertainment
Capital One® Savor® Cash Rewards Credit Card
Rewards
4% cash back on dining and entertainment, 2% at grocery stores and 1% on all other purchases
Welcome bonus
Earn a one-time $300 cash bonus once you spend $3,000 on purchases within the first three months from account opening
Annual fee
$95
Intro APR
0% for the first 12 months on purchases; N/A on balance transfers
Regular APR
15.99% to 24.99% variable
Balance transfer fee
3% for promotional APR offers; none for balances transferred at regular APR
Foreign transaction fee
None
Credit needed
Excellent/Good
See our methodology, terms apply.
Pros
- Unlimited 4% cash back on entertainment purchases
- 8% cash back on all Vivid Seats ticket purchases through January 2022
- Ability to redeem rewards at any amount, unlike some other cards with $25 minimums
- No fee charged on purchases made outside the U.S.
Cons
- $95 annual fee
- Cable, digital streaming and membership services are excluded from the 4% cash-back rate
- No introductory 0% financing offers for purchases or balance transfers
- Estimated rewards earned after 1 year: $588
- Estimated rewards earned after 5 years: $1,741
Rewards totals incorporate the cash back earned from the welcome bonus
Best for restaurants, takeout and delivery
American Express® Gold Card
Rewards
4X Membership Rewards® points on restaurants (including takeout and delivery) and at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X), 3X points on flights booked directly with airlines or on amextravel.com, 1X points on all other purchases
Welcome bonus
60,000 Membership Rewards® points after you spend $4,000 on eligible purchases within the first 6 months from account opening
Annual fee
$250
Intro APR
Not applicable
Regular APR
See Pay Over Time APR
Balance transfer fee
See rates and fees
Foreign transaction fee
None
Credit needed
Excellent/Good
See rates and fees and our methodology, terms apply.
Pros
- Strong rewards program with 4X points earned on dining worldwide and 3X points earned on flights booked directly with airlines or amextravel.com
- Up to $120 in dining credits at participating partners and up to $100 hotel credit
- Baggage insurance plan covers up to $1,250 for carry-on baggage and up to $500 for checked baggage that is damaged, lost or stolen
- No fee charged on purchases made outside the U.S.
Cons
- No introductory APR period
- $250 annual fee
- Estimated rewards earned after 1 year: $1,074
- Estimated rewards earned after 5 years: $2,969
Rewards totals incorporate the points earned from the welcome bonus
Best for groceries
Blue Cash Preferred® Card from American Express
Rewards
6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations, 3% cash back on transit including taxis/rideshare, parking, tolls, trains, buses and more and 1% cash back on other purchases
Welcome bonus
Earn a $250 statement credit after you spend $1,000 in purchases on your new card within the first three months
Annual fee
$95
Intro APR
0% for the first 12 months on purchases, N/A for balance transfers
Regular APR
13.99% to 23.99% variable
Balance transfer fee
N/A
Foreign transaction fee
2.7%
Credit needed
Excellent/Good
See rates and fees and our methodology, terms apply.
Pros
- High 6% cash back at U.S. supermarket spending (up to $6,000 a year, then 1%)
- Unlimited 6% cash back on select U.S. streaming subscriptions
- Unlimited 3% cash back at U.S. gas stations and on transit
- A year of no interest on new purchases
Cons
- $95 annual fee
- 2.7% fee on purchases made abroad
- Estimated rewards earned after 1 year: $774
- Estimated rewards earned after 5 years: $2492
Rewards totals incorporate the cash back earned from the welcome bonus
Best welcome bonus
Chase Freedom Flexâ„
Rewards
Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate (then 1%), 5% cash back on travel booked through the Chase Ultimate Rewards®, 3% cash back on dining and at drug stores, 1% cash back on all other purchases
Welcome bonus
$200 cash back after you spend $500 on purchases in your first three months from account opening
Annual fee
$0
Intro APR
0% for the first 15 months on purchases
Regular APR
14.99% to 23.74% variable
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
Foreign transaction fee
3%
Credit needed
Excellent/Good
See our methodology, terms apply.
Pros
- No annual fee
- Generous welcome bonus
- Opportunity to earn up to 5% cash back in select categories upon activation
- Rewards can be transferred to a Chase Ultimate Rewards card
Cons
- Bonus categories must be activated each quarter
- 3% fee charged on foreign transactions
- Estimated rewards earned after 1 year: $814
- Estimated rewards earned after 5 years: $2,647
Rewards totals incorporate the cash back earned from the welcome bonus
Best for intro 0% APR period
U.S. Bank Visa® Platinum Card
Rewards
None
Welcome bonus
None
Annual fee
$0
Intro APR
0% for the first 20 billing cycles on balance transfers and purchases
Regular APR
13.99% to 23.99% variable
Balance transfer fee
3%, minimum $5
Foreign transaction fee
2% to 3%
Credit needed
Excellent/Good
See our methodology, terms apply.
Pros
- 20 months of no interest on balance transfers and purchases
- No annual fee
- Cell phone protection plan
Cons
- No rewards program
- 2% to 3% foreign transaction fee
- Balances must be transferred within 60 days from account opening
Best cards for holiday shopping FAQs
What credit score do you need to get a rewards card?
Rewards credit cards often require good or excellent credit. Make sure you check your credit score before applying for one of these cards.
How to choose a rewards credit card
There are hundreds of rewards credit cards available, making it tricky to settle on the right one. It's important to take some time to choose the best card for your holiday shopping needs and long-term purchases.
All of the cards on this list are great to use throughout the entire year, so make sure you look at your past purchase history as a whole before settling on one card. You may even want to consider applying for multiple cards to maximize rewards.
First, decide if you're willing to pay an annual fee for a card, since this can help narrow down choices. Rewards cards have annual fees ranging from $0 to $550, which gives you the flexibility to choose the card that makes sense for your budget. Do the math to see if an annual fee is within your budget and if it can be outweighed by the card's benefits.
Next you should figure out what type of rewards you want to earn, and if you want a simple rewards program or one that may require some work. If you want a straightforward option, consider a card like the Citi® Double Cash Card, which offers a flat cash back rate on all purchases.
If you want to maximize rewards in common spending categories, such as dining and groceries, consider bonus rewards cards that offer over 2%/2X back on certain eligible purchases and may require activation. (Learn how credit card issuers classify purchases for bonus rewards.)
Beyond rewards, review the added card perks, such as annual statement credits and 0% APR periods, that can provide extra value.
How to make the most of your rewards card during the holidays
Make sure you understand all the benefits your card offers, including the rewards rates, statement credit offers, shopping discount tools and intro 0% APR periods.
Once you're familiar with the terms of your card, you can start to take full advantage of them. If you have a premium card like the American Express® Gold Card, set reminders to use the monthly $10 dining credit. Amex, Bank of America and Chase cardholders can activate various shopping discounts at apparel and dining retailers so you can earn extra rewards or statement credits.
And many of the cards mentioned above like the U.S. Bank Visa® Platinum Card include intro 0% APRs that allow you to pay for purchases over time, without expensive interest charges.
Best credit cards for holiday shopping
Category | General shopping | Amazon.com; Target.com and Walmart.com | Apple products | Department stores | Wholesale clubs | Entertainment | Restaurants; takeout and delivery | Groceries | Welcome bonus | Intro 0% APR period |
---|---|---|---|---|---|---|---|---|---|---|
Credit Card | Citi® Double Cash Card | Discover it® Cash Back | Apple Card | U.S. Bank Cash+™ Visa Signature® Card | Costco Anywhere Visa® Card by Citi | Capital One® Savor® Cash Rewards Credit Card | American Express® Gold Card | Blue Cash Preferred® Card from American Express | Chase Freedom Flex℠| U.S. Bank Visa® Platinum Card |
See below for our methodology | Learn MoreOn Citi's secure site | Learn MoreOn Discover's secure site | Learn MoreInformation about the Apple Card has been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication. | Learn MoreInformation about the U.S. Bank Cash+™ Visa Signature® Card has been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication. | Learn MoreOn Citi's secure site | Learn MoreInformation about the Capital One® Savor® Cash Rewards Credit Card has been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication. | Learn MoreOn the American Express secure site | Learn MoreOn the American Express secure site | Learn MoreOn Chase's secure site | Learn MoreInformation about the U.S. Bank Visa® Platinum Card has been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication. |
Our methodology
To determine which credit cards offer the best value, CNBC Select analyzed popular credit cards available in the U.S. We compared each card on a range of features, including rewards, welcome bonus, introductory and standard APR, balance transfer fee and foreign transaction fees, as well as factors such as required credit and customer reviews when available. We also considered additional perks, the application process and how easy it is for the consumer to redeem points.
CNBC Select teamed up with location intelligence firm Esri. The company's data development team provided the most up-to-date and comprehensive consumer spending data based on the 2019 Consumer Expenditure Surveys from the Bureau of Labor Statistics. You can read more about their methodology here.
Esri's data team created a sample annual budget of approximately $22,126 in retail spending. The budget includes six main categories: groceries ($5,174), gas ($2,218), dining out ($3,675), travel ($2,244), utilities ($4,862) and general purchases ($3,953). General purchases include items such as housekeeping supplies, clothing, personal care products, prescription drugs and vitamins, and other vehicle expenses.
CNBC Select used this budget to estimate how much the average consumer would save over the course of a year, two years and five years, assuming they would attempt to maximize their rewards potential by earning all welcome bonuses offered and using the card for all applicable purchases. All rewards total estimations are net the annual fee.
While the five-year estimates we've included are derived from a budget similar to the average American's spending, you may earn a higher or lower return depending on your shopping habits.
For rates and fees of the Discover it® Cash Back, click here.