Tips for Using Credit Cards and Gift Cards for Free Holiday Shopping
A new Consumer Reports survey says that 27 percent of those who received gift cards during the 2006 holiday season had not used one or more of them nearly a year later.
Before you start your holiday shopping, look in your purse, junk drawer, or car to collect all of your gift cards. These unused cards are a good way to tactfully "re-gift" and save a little money on your Christmas shopping.
Here are some tips for holiday savings using your gift cards and credit cards:
* Use unused gift cards for others on your list. "If you haven't used the card for yourself by now, you aren't going to miss it, and you will help your holiday budget by saving the value of that unused card," says Bill Hardekopf, CEO of LowCards.com. "This is also a good time to look at the fine print of each of your gift cards. If you wait over a year to use your gift card, you may start losing the value through a monthly fee that is typically $2.50."
* Use reward points for holiday shopping. If you have a reward card, you may have unused points piling up. Redeem these for gift cards or merchandise. For example, with an American Express Starwood Preferred Guest card, you can redeem 5,000 points for a $50 Amazon gift card, or 2,800 points for a $25 Pottery Barn gift card, a $25 Starbucks card or a $25 Gap card. Discover offers up to double cash rewards when you redeem your points for gift cards from their award partners such as AMC Theaters, Borders, Kohl's, Bed Bath & Beyond, or Macy's. You can give these gift cards away as gifts, or use them to purchase gifts, with no additional cash out of your pocket.
* Take advantage of reward partners to earn extra points. Many issuers have reward partners that offer extra points for purchases made with the card. For example, The Body Shop offers seven points per $1 spent with a Citi card. It also offers bonus points for purchases made at Target.com, eToys.com and Overstock.com.
* Review your credit card terms and conditions. Some cards have changed their reward terms this year, so don't assume that your card has the same terms as last Christmas. Some cards offer a higher percentage in specific categories, so make a plan to maximize your points. Log in to your account page to check for bonus points offers during the holidays. If you have more than one reward card, maximize your reward points by matching your purchase with the best points offer.
Before you start your holiday shopping, look in your purse, junk drawer, or car to collect all of your gift cards. These unused cards are a good way to tactfully "re-gift" and save a little money on your Christmas shopping.
Here are some tips for holiday savings using your gift cards and credit cards:
* Use unused gift cards for others on your list. "If you haven't used the card for yourself by now, you aren't going to miss it, and you will help your holiday budget by saving the value of that unused card," says Bill Hardekopf, CEO of LowCards.com. "This is also a good time to look at the fine print of each of your gift cards. If you wait over a year to use your gift card, you may start losing the value through a monthly fee that is typically $2.50."
* Use reward points for holiday shopping. If you have a reward card, you may have unused points piling up. Redeem these for gift cards or merchandise. For example, with an American Express Starwood Preferred Guest card, you can redeem 5,000 points for a $50 Amazon gift card, or 2,800 points for a $25 Pottery Barn gift card, a $25 Starbucks card or a $25 Gap card. Discover offers up to double cash rewards when you redeem your points for gift cards from their award partners such as AMC Theaters, Borders, Kohl's, Bed Bath & Beyond, or Macy's. You can give these gift cards away as gifts, or use them to purchase gifts, with no additional cash out of your pocket.
* Take advantage of reward partners to earn extra points. Many issuers have reward partners that offer extra points for purchases made with the card. For example, The Body Shop offers seven points per $1 spent with a Citi card. It also offers bonus points for purchases made at Target.com, eToys.com and Overstock.com.
* Review your credit card terms and conditions. Some cards have changed their reward terms this year, so don't assume that your card has the same terms as last Christmas. Some cards offer a higher percentage in specific categories, so make a plan to maximize your points. Log in to your account page to check for bonus points offers during the holidays. If you have more than one reward card, maximize your reward points by matching your purchase with the best points offer.
Posted by Lynn at
1:41 PM
Links to this post:
Create a Link
<< Home