Black Friday is the start of one of great shopping seasons of the year – and savvy shoppers are already gearing up to take advantage of door-to-door deals, price comparison tools and other money-saving tips and tricks.
Of course, saving money on every purchase is only part of the Black Friday experience. If you know the best Black Friday Credit Card Strategiesyou can earn valuable rewards by shopping the sales and getting ready for the holidays – and some of those rewards might be worth more than you think.
We asked Scott Lieberman, COO to The carpool guy and founder of TouchDownMoney.com, how he uses credit cards to save money on Black Friday. Here’s what you need to know, whether you want to maximize your credit card rewards, earn a sign-up bonus, or rack up enough miles to travel first class on your next vacation.
Use Black Friday to Maximize Bonus Category Rewards
If you have a bonus category rewards credit card, you already know you can earn industry-leading cash back, points or miles on specific shopping categories. Some bonus category reward cards are designed to reward grocery, for example. Others reward catering and entertainment purchases. There are even bonus category rewards cards for streaming media services.
Lieberman uses its bonus category rewards cards to earn money on Black Friday shopping. “This Black Friday, my plan is to maximize credit card rewards on my Chase Freedom Flex and Discover it cards,” he says.
The Hunting Freedom FlexSM and the Find out® Cash Back cards are both rotating category bonus cards, which means the highest paying bonus category rewards change quarterly. This year’s Chase Freedom Flex fourth quarter bonuses include five Chase the Ultimate Rewards points per dollar on Walmart and PayPal purchases – and the Discover it card offers 5% cash back on Amazon.com and purchases made through digital wallets.
“I will use my Discover It card to earn 5% cash back on up to $1,500 spent on Amazon.com from October through December 2022,” says Lieberman. “I will earn $75 cash back. The Chase Freedom Flex offers five points per dollar spent, up to $1,500 at Walmart from October through December 2022. That’s a maximum of $75.
Use Black Friday to fund your upcoming trips
If you want to use credit cards to save money on Black Friday, earning cash and points on Black Friday purchases is just the first step. You also need to know how maximize the value of your credit card rewardsespecially if you’re hoping to use those rewards to fund an upcoming purchase, like a vacation.
“Instead of redeeming my Chase Ultimate Rewards points for cash back, I move those Chase points to my Chase Sapphire Preferred card,” says Lieberman.
The Chase Sapphire Preferred® the card is one of today’s best travel maps. Like many award-lovers, Lieberman takes advantage of the Hunting Trifecta, and transfers the Ultimate Rewards points he earns with his Freedom Flex to his Chase Sapphire Preferred account. Many people do this so they can book travel through Chase Ultimate Rewards, increasing their point value by 25% in the process. Others, including Lieberman, move their points to the Chase Sapphire Preferred so they can transfer those points to one of Chase transfer partners – and get even more value.
“Moving my Chase points to the Chase Sapphire Preferred card allows me to transfer the points to partners like United, Southwest, JetBlue, and Hyatt for well over $75 in travel,” says Lieberman. “This strategy helped me pay for luxury business class flights to Europe using points, not cash!
Use Black Friday to meet sign-up bonus requirements
In addition to using Black Friday as an opportunity to earn and redeem credit card rewards, you can also use your Black Friday purchases to meet spending requirements for your next credit card sign up bonus. A lot of people spend a lot of money on Black Friday, after all – which means if you open a new credit card before you start your holiday shopping, your purchases could earn you a sign-up bonus of hundreds of dollars.
Worried that you won’t be able to buy enough gifts to meet spending requirements? Try to combine holiday shopping with daily necessities. Or consider using Black Friday sales as an opportunity to invest in home improvement shopping Where small business supplies.
“In previous years, I’ve used Black Friday to stock up on business purchases that I’ll use throughout the year,” says Lieberman. “It helped me meet the minimum spend requirement on the Chase Ink Business Preferred to earn the massive sign-up bonus.”
The massive bonus it refers to: The Business Preferred® Ink credit card offers 100,000 bonus points to cardholders who make $15,000 in purchases within the first three months of account ownership. Discount rate values Ultimate Rewards Points redeemed through Sapphire Preferred or Ink Business Preferred at 1.25 cents when redeemed through the Chase Travel Portal, and up to 2 cents when transferred to travel partners.
“Currently, this bonus is worth $1,000 in cash, $1,250 in travel purchases through Chase’s travel booking site, or $2,000+, depending on how you use the points with airlines and hotel partners. like Marriott and British Airways,” says Lieberman.
If you are not a small business owner, but are looking for similar travel rewards, consider applying for one of the Chase Sapphire cards In place. The Chase Sapphire Preferred has the same $95 annual fee as the Ink Preferred and offers new cardholders 60,000 bonus points if they spend $4,000 within the first three months of account opening. Sapphire Preferred Points have the same value as Ink Preferred (1.25 cents) when redeemed through the Chase Travel Portal.
The most premium Chase Sapphire Reserve® offers 80,000 bonus points to cardholders who spend $4,000 in the first three months. Sapphire Reserve has a higher annual fee ($550), but offers better benefits and earns higher value points when redeemed through the Chase Travel Portal – 1.5 cents vs. 1.25 cents.
The bottom line
There are many different ways to save money on Black Friday — and when you choose the right credit cards for your purchases, you can save even more. Whether you’re using Black Friday as an opportunity to earn a welcome bonus on your credit card or planning your Black Friday shopping around bonus category rewards, there are plenty of ways to use your credit cards to earn cash back, points and miles. If you follow Lieberman’s lead and redeem your credit card rewards for their maximum potential value, you can get the most out of every Black Friday purchase.