Winter holidays are often accompanied by large credit card bills. Having a highly rewarding credit card is especially valuable this time of year – and having a low-interest card can be a life saver when it comes to post-holiday payments.
These are some of the best credit cards to use for Christmas or your next holiday celebration. These cards are also fantastic to use throughout the rest of the year, so they don't have to be one-hit wonders.
Key Takeaways
- The best credit card to use while holiday shopping depends on what you’re looking for from the card, like rewards or low interest rates.
- Look at our favourite Mastercards for cash back, low interest, and prepaid card options.
- The best credit card for rewards on your holiday shopping is the American Express Cobalt Card.
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Best credit cards for Christmas and holiday shopping
Before we get into what to look for in a credit card that you plan to use for some serious shopping, let’s cut to the chase and see the best cards you could possibly use.
| Card Name | Category | Welcome Offer | Annual Fee | Rewards | Other Features | Learn More |
|---|---|---|---|---|---|---|
| MBNA Rewards World Elite Mastercard | Best for cash back |  $100 GeniusCash + 30,000 bonus points (terms) | $120 | * 5 points per $1 spent on restaurants, groceries, and recurring bills * 1 point per $1 spent everywhere else | * 12 types of insurance included * 10% bonus points every year on your birthday | Learn More |
| American Express Cobalt Card | Best for rewards | $100 GeniusCash + Up to 15,000 bonus points (terms) | $191.88 | * 5 points per $1 spent on groceries and restaurants * 3 points per $1 spent on streaming * 2 points per $1 on gas, transit, and rideshares * 1 point per $1 on foreign currency and all other purchases | * 12 types of insurance included * 4 ways to redeem points for high value | Learn More |
| MBNA True Line Mastercard | Best for low interest | $20 GeniusCash + 0% interest on balance transfers for 12 months (terms) | $0 | * N/A | * No annual fee * 0% on balance transfers for 12 months (3% transfer fee). | Learn More |
| KOHO Everything Mastercard | Best prepaid | $100 GeniusCash + $20 after the first purchase | $177 | * Earn 2% cash back on groceries, restaurants, and transportation * Earn 0.5% cash back on everything else | * No credit check required * Earn 3.5% on your balance * No foreign exchange fees | Learn More |
MBNA Rewards World Elite Mastercard
×4 Award winner 
GC: $100
4x Award winner Rewards:
- 5 points for every $1 spent on restaurants, groceries, and select recurring bills (up to $50,000 spent annually per category)
- 1 point per $1 spent on all other purchases
While this card only gives 1 point per $1 on most purchases, it will give you 5 points per $1 on restaurants, groceries, and select recurring bills.
You’ll also get a hefty welcome bonus worth up to $300 and each year on your birthday you'll get 10% bonus points (based on what you spent over the previous year). Redeeming for straight cash back is also very valuable with this card.
American Express Cobalt Card
×8 Award winner GC: $100
8x Award winner Rewards:
- 5 points per $1 spent on eligible groceries and restaurants (up to $2,500 spent per month)
- 3 points per $1 spent on eligible streaming services
- 2 points per $1 spent on eligible gas, transit, and ride share purchases
- 1 point per $1 spent on foreign currency purchases
- 1 point per $1 spent on all other purchases
If you’re purchasing gifts from a merchant categorized as grocery or grabbing a bite to eat while shopping, you’ll enjoy the best cash back rates of any credit card. Otherwise, you’ll get a respectable 1% back. This card also made our list because of its high-value redemption options.
MBNA True Line Mastercard
×2 Award winner GC: $20
2x Award winner No rewards
This card might not offer any rewards, but it’s the best option if you already have some credit card debt and will probably have a balance for a little while. You can transfer your existing balance to the card and pay 0% interest on it for 12 months.
Any purchases you make are only charged 12.99% interest, which is well below the average credit card interest rate, making this the smartest card to use for your holiday shopping if you can't pay everything off right away – you can also make your purchases on a more rewarding credit card, and then transfer the balance to this card.
KOHO Everything Mastercard
Rewards:
- 2% cash back on groceries, restaurants, and transportation
- 0.5% cash back on all other purchases
We wanted to include a prepaid credit card option for people who might not qualify for an unsecured card or for those trying to stick to a budget. The KOHO Everything Mastercard fits the bill.
You’ll earn 0.5% cash back on most purchases (and 2% back on restaurants, groceries, and transportation) and even get a small welcome bonus, which is pretty rare for a prepaid card. You’ll also earn 3.5% interest on your balance, so you can think of it as a savings account, too.
Extended warranty and purchase protection benefits
Most credit cards include some insurance for the purchases you make. Specifically, you’ll often see an extended warranty included, as well as purchase protection benefits. Both of these can help you feel confident in making purchases with your credit card.
If you’re buying a product with a warranty, extended warranty simply gives you more warranty after the original manufacturer’s warranty expires. Usually, a credit card gives an additional year or two. For instance, if you bought a stereo system with a one-year warranty, but your card says it comes with a two-year extended warranty, you’ll get two additional years of coverage after the manufacturer’s warranty expires.
There’s also purchase protection to keep in mind. Most cards automatically include 90 days of this coverage. So, if you buy something with the card and it’s lost, stolen, or damaged, you can submit a claim through your credit card’s insurance provider to be reimbursed. Just note that most cards have a limit on how much coverage they provide.
Tips to maximize your holiday spending
Here are some additional ways to get the most out of your seasonal shopping.
Use price comparison sites before you shop
Nothing’s worse than second-guessing a purchase because you might be able to get it somewhere else for a better price. Instead of overthinking it while you’re at the store, take some time before you head out to use price comparison websites.
Knowing where you can get the best deals for things on your Christmas list can also help you come up with a shopping strategy. This way, you’re not driving back and forth across town (and dealing with all those stressed-out shoppers).
Use a card with a good rate of return
If you’re diligent about paying off your credit card balance and you’re not getting charged interest, a card with a good rate of return will give you money that goes straight into your pocket. Although a few of the cards on our list have higher earn rates for things like groceries and restaurants, overall, these cards can give you the most value on your everyday purchases.
Check your special credit card offers
Depending on your credit card, you might be able to load special offers and discounts to your account. When you make a qualifying purchase (often through a partner link), you’ll get a percentage of the purchase or a flat rate cash back. American Express Offers might be one of the most well-known examples of these, so check before you buy anything.
Check prices after you buy
Some merchants will price match, but it’s on you to keep comparing prices after you shop. Read the store’s terms and conditions, so you have all the information you need to get a price adjustment if something you buy goes on sale after you purchase it.
FAQ
What are the best credit cards for holiday shopping?
Check out the American Express Cobalt Card for the card that earns the best rewards or the MBNA Rewards World Elite Mastercard for the most cash back. If you’re carrying a balance, take a look at the MBNA True Line Mastercard, which can save you on interest.
Is it worth paying for a holiday on a credit card?
If you know you can pay off the holiday within a short time frame (before you’re charged interest), it makes sense to charge it. Not only will you earn rewards, but you’ll get insurance, too.
Why should you avoid using high-interest credit cards for holiday purchases?
No one likes starting a new year in debt, which is what happens to too many people who charge purchases to a high-interest rate card. The interest and debt can snowball, making it harder and harder to pay off your balance.
What is purchase protection insurance?
If you buy something with a card that has purchase protection insurance and the item is lost, stolen, or damaged, you can submit a claim with your card’s insurer to be reimbursed (up to your card’s coverage limit).
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