This holiday season, credit card companies are bombarding consumers with credit card offers. Many credit cards are advertising cash back bonuses to new customers of up to $100; others are offering free airline miles or credit card rewards points. These prominently advertised deals are very attractive and can be beneficial to people who pay their credit cards in full every month. However, for those who will be taking on new credit card debt during the holiday season, the best credit card offer is likely one that offers a 0% interest rate on new purchases.
The key to determining which credit card offer will save you the most money is to think honestly about how long you will need to payoff any credit card bills you run-up during the holidays. If it is only a month or two, then you could benefit from a card that offers a $100 cash back bonus just for signing up. However, if you are like the 13.6 million Americans Consumer Reports estimates are still paying for 2009 holiday purchases, then ignore the rewards hoopla and choose a card that will save you money on interest.
Here are my top picks for this holiday season, with an emphasis on cards that come with 0% rates on purchases:
The Citi Platinum Select Card is a bare-bones, no frills credit card that offers a 0% interest rate on new purchases for 12 months as well as a 0% APR on balance transfers that lasts 21 months. This card is an ideal choice for consumers with good credit who intend to take on credit card debt this season as well as for those who currently have debt on high interest cards and want to take advantage of the balance transfer deal to save money on interest. Learn more and apply online.
The Chase Freedom Visa – $100 Cashback Card offers consumers a $100 cash back reward after they spend $500 as well as a 0% APR on purchases for 6 months and a 0% APR on balance transfers for 12 months. This card is a good choice for people who will be repaying their credit cards in full within 6 months, as you can earn $100 cashback and avoid interest expenses. The $100 cash back bonus is equal to a 20% discount, plus you can earn between one and five percent cash back on top of the $100 bonus. Learn more and apply online.
The Discover More Card – $100 Cash Back offer is a good choice for people with very good credit who want to take advantage of a cash back deal, but also get a 0% interest rate on purchases for 6 months. In order to earn the $100 cash back bonus, you simply need to spend $500 over the next three months, something that shouldn’t be too difficult during the holidays. This card also offers a 0% interest rate on balance transfers for 12 months, so like the Citi Platinum Card, it can be used to reduce interest expenses on debt you already have. Learn more and apply online.
The Citi Forward Card is another decent option for consumers with good credit who want a 0% APR on purchases and a $100 cash back bonus. To qualify for this card’s promotional cash back bonus, you need to spend $500 within three months. With this card, the 0% introducotry APR for purchases lasts for 7 months and, like the Discover More Card, this card also offers a 0% APR on balance transfers for 12 months. The primary drawback to this card is its rewards program. After you cash in your $100 bonus, your purchases earn Thank You Points, which are less valuable than cash back. Learn more and apply online.
Overall, there really are a lot of good credit card deals available this holiday season. But if you want to save the most money, don’t get lured in by $100 cash back promotions unless you will be paying off your holiday spending bill immediately.
Jeffrey Weber
