This holiday season, I'm using credit card rewards to score Airpods, save money on Lululemon, and build up points for the new year

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• I use my credit cards strategically to save money and earn points for holiday shopping.
• This year, I'm saving money on Apple, Lululemon, and more gifts for my kids.
• My strategies only work if you pay your bill in full every month.

Credit cards can be a valuable tool when it comes to earning rewards and benefiting from exclusive perks, but they're especially useful in times when you're spending a lot of money. This is definitely the case for me each year as I shop for the holidays, mostly because I'm spending more than normal and paying for items outside my usual shopping list of groceries, gas, and utilities.

For the holiday shopping season in 2023, I've been focusing on earning more rewards and redeeming credit card rewards smartly to get gifts for family members, friends, and my two girls (ages 12 and 14). Here are some of the ways I'm getting the most out of rewards credit cards in 2023 as the mother of a tween and a teenager, and some ways you can do the same.

Strategically redeeming rewards for gift cards

While I typically redeem travel rewards for airfare and hotel stays or point transfers to partners, there are situations where I'll make an exception. One is any time I can get a good deal on gift cards I can turn around and use for holiday shopping.

I did this recently after browsing the gift card options available through the Chase Ultimate Rewards portal. My kids love Lululemon leggings and the Chase portal was offering gift cards to the retailer for 10% off. This let me score two $100 gift cards for 18,000 points, which I used to supplement the cash I paid for a pair of leggings and a pair of shorts for each child.

Scoring Apple AirPods through the Chase portal with points

Chase also has deals off and on through the portal for purchases made at the Apple Store, although you can always shop at Apple with rewards at the standard rate of one cent per point. 

Because I have the Chase Sapphire Reserve® and a special deal was going on, I was able to shop at the Apple store through Chase and get 50% more value for my points while purchasing a pair of AirPods Pro (2nd generation) for my youngest child.

Shopping through credit card portals to earn more rewards

As a Delta SkyMiles and Chase Ultimate Rewards enthusiast, I also use each program's respective shopping portal to earn more rewards on everything I buy. For example, Delta SkyMiles Shopping is free to use and makes it possible to earn bonus miles while shopping online at more than 1,000 stores. 

While deals through shopping portals change all the time, I was recently able to earn 2.5 miles per dollar spent at Nike.com and 3.5 miles per dollar spent at Macy's. Of course, I paid with a rewards credit card to "double dip" on the bonus miles and the regular rewards earned for spending.

Maximizing credit card bonus categories

My husband and I both have the Chase Freedom Flex® Credit Card, which offers 5% back on up to $1,500 spent in bonus categories every quarter (then 1% back), 5% back on travel through Chase, 3% back on dining and drugstore purchases and 1% back on other spending. The Chase Freedom bonus categories for the final quarter of 2023 include PayPal purchases, wholesale clubs and select charities, so I am making sure to maximize that.

We are huge Costco shoppers, so I have already bought my kids some skincare products, a cordless speaker, and electric toothbrushes at the warehouse store. I have also made some holiday purchases using PayPal and my card so far in order to make the most of this quarter's bonus category rewards.

Using credit card 'offers'

I'm also doing something for the holidays that I actually do all year long. I'm taking advantage of programs like Amex Offers, Chase Offers and Capital One Offers to earn more rewards. These offers are available in each credit card account and doled out on top of the rewards earned for paying with a card, and all you have to do is add one to your card to earn bonus points or cash back on eligible purchases.

Deals in these programs change all the time, but my Capital One account recently offered deals like 4% back at Lululemon, 5% back at Ulta Beauty, and 6% back at Macy's. I always check for deals in any of the "Offers" programs I can use, then add them to my account so they're ready when I am. From there, I pay with the right credit card for the program (in this case, my Capital One Venture X Rewards Credit Card) to earn bonus cash back or miles for each dollar spent.

Avoiding credit card interest

While earning and redeeming rewards in a strategic way helps me get more out of my holiday shopping budget each year, another step I take is probably the most important. I only charge what I have the cash to pay for and I pay my credit card bills in full every single month with no exception. Otherwise, the high rates credit cards charge, which currently average over 20% according to the Fed), would wipe out the benefit of the rewards I earn and then some.

And that's probably the key to benefitting from credit cards in the first place: Using cards for what you can afford, taking steps to maximize rewards, and being strategic when it comes to the cards you sign up for only goes so far. If you pay credit card interest because you carry a balance each month, using a credit card will cost you in the long run.

Products in this post: Chase Sapphire Preferred® Card - Product Name Only, Chase Freedom Flex℠ - Product Name Only, Capital One Venture X Rewards Credit Card - Product Name Only