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Most retailers have already released their opening day and times for Black Friday, while consumers all over the world are watching prices very carefully.
A survey by Accenture indicated that the consumers are showing a dramatic increase in their spending expectations, with 63% of survey respondents planning to shop at retail stores and online for Black Friday (November 27th of this year).
If you're like the 19% of respondents who are just starting their holiday shopping on Thanksgiving and Black Friday, you should definitely make those purchases with the right credit card in order to earn rewards for your purchases.
There are 2 types of rewards credit cards that will be good to use for Black Friday shopping; those that will earn you bonus points on this quarter’s category spending, and those that will earn you 2% (or 2 points or more) on all purchases, every day. Another point worth mentioning is that many credit cards have a limit on the dollar amount you can earn rewards on, which is usually no more than $1,000. That works perfectly because 83% of survey respondents from a 2014 CompareCards survey charged $1,000 or less to their credit card for holiday expenses last year.
Here is a list of the best credit cards from our partners to use for your Black Friday shopping this year.
Credit Cards for Bonus Category Purchases
Discover it® - 18 Month Balance Transfer Offer: If you love shopping online, then this is the perfect rewards credit card to use for holiday purchases. The bonus categories for this quarter includes Amazon.com, department store, and clothing store purchases. The 5% category rewards cap at $1,500 and then you will earn 1% on other purchases after that cap is reached. The list of approved department store and online retailers include Walmart.com, Target.com, JC Penny stores, Sear's stores, and more. See the full list, here.
Another way cardholders can save money is by purchasing gift cards through the Discover gift card program because you'll never pay more than face value. As if that's not enough reason to use your Discover it Card, you can also earn additional cash back by shopping within Discover's exclusive online shopping mall of premium merchants, products, and services. If you're not a current Discover it cardholder, be sure to look over the details of all Discover it cards so you get the best credit card for your needs.
The Chase Freedom® Card is never a bad choice when it comes to earning bonus rewards on rotating categories of purchases. Cardholders will earn $150 cash back bonus after spending $500 on purchases in the first 3 months from account opening. Cardholders will also earn 10% cash back on up to $1,500 in new purchases at Amazon.com, Zappos.com, Audible.com, and Diapers.com from November 23 - December 31. Rewards can be redeemed as cash back or for gift cards, travel, experiences, and more. The bonus categories that come with this card require cardholders to activate their rewards; the deadline for this quarter is December 14th.
American Express is another bank that does a good job of helping cardholders earn cash back on purchases at select U.S. department stores with their Blue Cash Preferred® Card from American Express. What sets this card apart from the others on our list is that cardholders will earn 3% cash back on select U.S. department store purchases year-round, not just during the holidays. Major department stores include Nordstrom, Kohl's, Belk, Sears, and more. See the full list of American Express retailers. No enrollment is required* and cash back is received in the form of Reward Dollars and can be redeemed for statement credits. The Blue Cash Everyday® Card from American Express is another good card to use for Black Friday that will earn you 2% cash back on select U.S. department store purchases. *Terms and restrictions apply.
Everyday Purchase Rewards Credit Cards
The typical rate you see for rewards on everyday purchases is 1 point or 1%. With such a competitive market, more and more credit cards are beginning to offer 1.5% or 1.5 points per dollar spent, but even that’s not enough. Here's a list of cards that will earn you the most for your buck on all purchases, all year long.
The Capital One® Venture® Rewards Credit Card is perfect to use for anyone venturing out on this chaotic Black Friday. This card will earn card holders a standard 2 miles per dollar spent on all net purchases, miles never expire and there’s no limit to the number of rewards you can earn. Miles can be redeemed for more than just travel. You can redeem miles for cash, gift cards (that’s a gift), brand-name merchandise (another gift idea), and more. You must login to your account in order to see the full disclosure of redemption offers. Additionally, card members could earn a one-time bonus of 40,000 miles after making $3,000 in purchases within the first 3 months. The one down-side to this card is that it doesn't come with an introductory APR offer, so the on-going APR is 13.24% - 23.24% variable, depending on your creditworthiness.
The Citi® Double Cash Card – 18 month BT offer is another great rewards credit card that's sure to be used during holiday shopping. Cardholders will earn 1% cash back twice; 1% when they make a purchase and then another 1% cash back when they pay for those purchases (pay their bill). Citi Double Cash makes reward redemption easy; as soon as you have earned $25 in cash rewards, you can redeem those for a statement credit, as a gift card, or as a check. In addition, there are no caps to how many rewards you can earn and no enrollment is required. Rewards will expire if you haven't earned any cash back from purchases or made any payments for 12 consecutive months. Pay 0% intro APR for 18 months on balance transfers.
The Barclaycard Arrival Plus™ World Elite MasterCard®, as the name implies, will earn cardholders double miles on all purchases, every day. Miles don't expire as long as your account remains open and in good standing. In the first 90 days of opening the account, you can earn a limited time sign up bonus of 50,000 bonus miles after making $3,000 in purchases. It's not a good idea to use this card for Black Friday purchases if you are not able to use the rewards for travel redemption (hotel, cruise, train, flight, car rentals, & travel agencies). It's best to redeem your miles for travel because you will get 5% of the miles back to use towards your next redemption when you redeem for a statement credit. There is no intro APR for purchases with this card.
The BuyPower Card from Capital One® is designed to give you earnings that you can redeem towards the purchase of a new Chevy, GMC, Buick, or Cadillac vehicle. Card holders will earn 5% cash back on your first $5,000 in purchases each year, then 2% on all purchases thereafter. Your Earnings don’t expire and there’s also no limit to the number of Earnings you can redeem. Additionally, you get 0% interest on purchases for the first 12 months of card membership. Do not use this card for Black Friday purchases if you have no intention of purchasing a vehicle. Reward Earnings cannot be redeemed or used towards anything else.
* Editorial Note: This content is not provided or commissioned by the credit card issuer. Opinions expressed here are the author’s alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through the credit card issuer Affiliate Program.
*The content in this article is accurate at the publishing date, and may be subject to changes per the card issuer.