How To Save On Your Holiday Shopping With A 2% Cash Back Credit Card

  • You can make maximum savings when using 2% cash back credit cards for your holiday purchases.
  • Combining your 2% cash back card with a tiered bonus category or a rotating bonus card can earn you maximum savings.
  • Researching credit cards to look at your budget and see where you are spending the most money helps in getting the maximum benefits

The holidays are fast approaching and many shoppers are looking for ways to finance their holidays purchases. It could be that you want to buy your son his favorite computer game or that previous gift for your dad. But looking a look at your finances show that you are not to able to pay cash for them. As many other shoppers, you might turn to personal loan facilities such as such as instant pay day loans, cash loans and other types of short-term loans.  Other shoppers may turn to cash back credit cards which give you back a percentage of the money you use for making a transaction with them.

Some cash back credit cards can offer you as much as 2% cash back, which is currently the highest rate you will find from the widely-available flat rate cash back credit cards.

This article takes a closer look at how you can use a 2% cash back card to make maximum savings when making your purchases during this holiday season.

How to make maximum savings using your 2% Cash Back Credit Card

To get the maximum benefit from your 2% cash back credit card over the coming holiday season, just use it for all your holiday purchases that you know you don’t already have higher rewards with any other card.

For example, instead of using your prepaid credit card to make your normal holiday purchases, always carry your 2% cash back card and pull it out at the counter to increase your savings. Note that, the only way of getting maximum benefit from your card is to make timely and full payments of your balance each month. Failure to do so attracts interest charges, which can in turn undo any gains you may earn in cash back.

The key idea here is to use the cash back card to pay for all the purchases that you are planning to make within your holiday budget.

Beverly Harzog, a credit card expert and consumer finance analyst for U.S. News and World Report says, “Cards with more rewards tend to have higher APRs, so you never want to carry a balance.”

In addition, if you want to maximize savings with the cash back rewards you receive, you try to pair your plat rate 2% cash back credit card with another card that offer you higher cash back rewards in specific categories that you are likely to spend most.

For example,  you may be planning to spend most on gits and groceries during the upcoming holiday season. If there a card that can earn you 6% back on purchases of up to say, $6,000 per year, 6% on select holiday products, and 3% on select streaming services, you can use it on all eligible purchases in these categories, and still get your 2% reward with your flat cash back credit card.

Therefore, it is very important to “That’s why it’s so important before you even start researching credit cards to look at your budget and see where you are spending the most money,” Harzog advises.


While cash back credit cards can come in handy when you need to finance your holiday purchases. However, it is important to be aware of your spending habits before you sign up for a cash back credit card.

For example, if you spend a lot of money during the holidays dining in a restaurant, then a cash back card with rotating bonus rewards categories may be of more value to you during this holiday season. However, if you prefer a card that guaranteed cash back on everything that you purchase, a flat rate cash back card offering 2% earnings or more is a good choice.

However, combining a flat rate card with a tiered bonus category or a rotating bonus card is a good way to maximize your savings. Note that using the right combination of cards coupled with proper strategies can earn you significant savings over the holidays.

There is a card out there for you right now. All you need to do is understand your specific needs, your spending habits and your strategies.

About Nancy Lubale PRO INVESTOR

Nancy is a successful finance, crypto analyst and content writer with many years of writing experience finance and blockchain fields. Nancy has been producing quality content for websites in the cryptocurrency industry including Krptotrends, Forexcrunch, and InsideBitcoins. She is a Certified Cryptocurrency Expert (CCE) from Blockchain Council. Her interests are in cryptoasset research, Fintech, Blockchain, DeFi, NFTs and Personal Finance.