Holiday Shopping: Credit Cards with the Best Rewards

With inflation high, more consumers than ever are relying on credit cards to manage the cost of gifts for this holiday season.

In a recent report, National Retail Federation CEO Matthew Shay said “many households will supplement their spending with savings and credit provide a cushion” for themselves.

Experts have seen increased interest in signing up for store credit cards to offset the financial strain on their wallets, despite the high annual percentage rates (APRs) attached to these cards.

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To help shoppers stretch their tighter-than-normal budgets, WalletHub has listed credit card which offer upfront sign-up bonuses, savings of up to 5% on purchases, and 0% introductory interest rates. In some cases, the cards will have a combination of high savings and low rates, at least for the first year.

Here are some of the best credit cards for shopping, according to WalletHub:

1. American Express Favorite Blue Cash

The card offers new customers $250 for spending $3,000 within six months of opening an account. When making purchases, cardholders can earn between 1% and 6% cash back.

A customer holds a credit card for payment at the checkout counter of a Caprabo SA supermarket in Barcelona, ​​Spain, Friday, November 4, 2022. (Angel Garcia/Bloomberg via Getty Images/Getty Images)

The map too 0% APR offers for the first year on purchases and balance transfers. Cardholders will not have to pay an introductory annual fee for the first year.

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Then they will have to pay $95 per year for the card. The card also has a high APR after the first year, between 17.74% and 28.74%.

2. Chase unlimited freedom

The card does not offer a sign-up bonus, but it offers between 1.5% and 5% cash back on purchases. It also offers new cardholders an additional 1.5% cash back on everything up to $20,000 in the first year.

Users will be able to earn 5% cash back on trips when booked through Chase, 3% back when shopping at restaurants and drugstores, and 1.5% cash back on everything else.

credit card

A customer inserts a credit card into the Square Inc. device during checkout in San Francisco, Calif., Tuesday, March 27, 2018. (David Paul Morris/Bloomberg via Getty Images/Getty Images)

The card has no annual fee and offers an introductory APR of 0% for 15 months. After the first 15 months however, there is a high APR between 17.99% and 26.74%.

3. Wells Fargo Active

Cardholders will receive a $200 bonus after spending $1,000 in the first 3 months and can earn 2% cash rewards on every purchase.

This card has no annual fee and an introductory APR of 0% for 15 months.

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However, there is a high interest rate after the first 15 months between 18.74% and 28.74%.

4. Instacart Mastercard

WalletHub rated this card the best for groceries. It has no annual fee and also offers cardholders 5% cash back on instacart purchases. Approved cardholders will also receive a free year of Instacart+ along with $100 Instacart credit.

Cardholders can earn 5% cash back on travel booked through Chase and between 1% and 2% on other purchases.

5. Find out Secure Credit Card

This card is best for people who want to earn rewards but have bad or limited credit, according to WalletHub.

Cardholders will be able to earn at least 1% cash back on all purchases. For the first $1,000 spent per quarter at gas stations and restaurants, cardholders will receive 2% back.

After a year of opening the card, cardholders will receive a bonus equal to the total of their first-year rewards earnings, according to WalletHub.

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However, the downside is that cardholders will need to post a refundable security deposit of at least $200, which will also be the same amount as the account’s spending limit.