The holiday season brings joy and warmth and is a wonderful time to share with friends, family, and coworkers. However, it's also a period when we often spend more on travel, gifts, and festive meals, and these expenses can add up quickly. With events like Black Friday, Cyber Monday and Small Business Saturday approaching, now is an excellent time to maximize your credit card rewards.
Using your credit card strategically and responsibly now can help you earn cash back and points that you can put toward holiday gifts and expenses, thereby reducing your out-of-pocket costs. This article from Ameris Bank provides insights on how to achieve this.
Determine Your Holiday Budget
As the holiday season approaches, it's important to set a spending budget. Start by reviewing your financial situation, which includes your income, expenses, outstanding credit card balances and any savings you've set aside for discretionary spending. To simplify the budgeting process, use Ameris Bank's convenient budget calculator.
Once you complete this review, you should have a clear idea of how much you can afford to spend using your credit card. Be realistic about your spending capacity and consider setting limits to help you stay on track.
Make a List, and Check it Twice
Once you've determined your budget, it's helpful to create a list of your anticipated expenses. Start by listing everyone you plan to shop for, the gifts you want to buy them and the cost of each gift. In addition to the gifts, include costs for items such as holiday boxes, wrapping paper, tape, bows and greeting cards. If necessary, include the cost of packaging and shipping gifts.
Be sure to include costs for special meals and travel expenses. Additionally, if you're thinking about making an impulse purchase (like a gift for yourself), consider adding a line item for discretionary spending.
Review Your Credit Card's Rewards Options
After you have finalized your holiday season budget and created a shopping list for your gifts and expenses, the next step is to review the rewards options associated with your credit card. To do this, log in to your card’s mobile app or website. Navigate to your account dashboard and select the credit cards section. Look for a tab or link that directs you to the rewards section of your credit card account.
Cash Back Rewards
Cash back rewards can be very beneficial during the holiday season. They allow you to earn a percentage of your spending back, which you can then use to cover holiday gifts and expenses.
Cash back rewards are offered for various types of purchases. For instance, you might earn cash back on purchases made at restaurants, coffee shops, grocery stores, gas stations, EV charging stations and other eligible categories specified by your bank and credit card provider.
Pay close attention to the cash back percentage your card offers. Most cards earn 1% cash back (1 cent per dollar spent), but some cards offer higher earnings. For instance, Ameris Bank offers a Max Cash Preferred card that can earn up to 5% cash back in select categories.
Points, Airline Miles and Other Credit Card Rewards
In addition to earning cash back on your credit card purchases, you may also have the opportunity to earn various types of rewards that can be beneficial once the holiday season begins. These rewards may include points that can be redeemed for holiday travel, such as airline miles or hotel stays, helping reduce your travel costs during this time.
Other credit card rewards can include gift cards for restaurants, retail stores or entertainment venues, as well as points that can be exchanged for various gifts. You might want to redeem your credit card points for gift cards or merchandise to give to others as holiday presents. This approach can help reduce your holiday spending, as you'll be using the benefits earned from your credit card usage.
Use Your Credit Card Responsibly
The idea of earning cash back and various rewards by using a credit card can be quite enticing. However, it's important to exercise caution, as it can lead to overspending and accumulating debt. To prevent this, refer to your holiday budget and spending list, and make sure to stick to them.
Adhering to a holiday budget can help you spend less, which in turn can reduce debt and alleviate financial stress once the holidays are over. It's worth noting that more than one-third of all shoppers amassed an average of $1,223 in holiday spending debt in 2025.1 The last thing you want is to start the new year worrying about how to pay off excessive debt.
Not All Credit Cards Are Created Equal
Credit card rewards, including cash back and points, can vary depending on the specific credit card and its issuer. Some cards may provide cash back and points that can be redeemed for specific products or services, while others may offer little or no rewards at all.
Regarding cash back credit cards, some offer a flat rate of 1%, 2% or even 5%. Other cards use a tiered system, where different spending categories have varying cash back amounts. For instance, you might earn 5% cash back on cell phone bills and utilities, 2% on groceries or dining and 1% on general purchases.
When it comes to credit cards that provide rewards, each bank sets its own specific guidelines. These guidelines detail the shopping categories eligible for points, how many points you earn for every dollar spent and how many points are required for redemption. Credit card reward points generally have a value of about 1 cent per point, meaning 1,000 points are worth about $10, although this can vary by bank and credit card type.
Looking to use a credit card to earn cash back, accumulate travel rewards or gather points for merchandise and gift certificates? Explore our selection of rewards credit cards to find the one that best meets your needs and apply today.
1 https://www.cnbc.com/2025/12/23/credit-card-debt-holiday-shopping.html
