» a credit and personal finance blog

Holiday shopping is in full swing, and there are certainly great deals to be found everywhere this year. However, you can save even more money if you shop for those deals with the right rewards credit cards in hand. In fact, in some instances you can even receive an additional 25% in discounts! So before you hit the shops this year, make sure you know what discounts and rewards are offered by the credit cards you already carry in your wallet. Or, consider applying for a new rewards credit card to maximize your holiday savings.  Here are some of our favorites if you're already on the hunt:

6 Best Rewards Credit Cards for Holiday Shopping

1. American Express Blue Cash Preferred

The American Express Blue Cash Preferred Card offers some of the best cash back rewards available. You receive 6% cash back at grocery stores, 3% on gas, and 1% on all other purchases with this card. You also receive unlimited cash back with the American Express Blue Cash Preferred card, unlike many of the other comparable cash back cards on the market. In addition, if you purchase $1,000 or more in the first three months after receiving the card, you'll receive a $150 welcome bonus. The APR is 0% for the first six months and then it adjusts to 17.24%, 20.24%, or 22.24% depending on your credit history. And while the card does have a $75 annual fee, the unlimited cash back more than pays for the annual fee, especially if you often have high grocery bills or spend a lot on gas.

2. Chase Freedom

The Chase Freedom Card offers a flat 1% cash back on all purchases with no strings attached. Cardholders also receive 5% cash back for up to $1,500 in purchases per quarter in a rotating list of categories.  Right now (October to December), the categories include department stores, restaurants, and movie theaters. In addition, if you make purchases with the Chase Freedom card at select retailers, you can receive up to an additional 10% cash back. The Chase Freedom card comes with two different sign-up bonus options as well, both of which are generous. You can get $100 cash back when you spend $500 during the first three months in addition to a 0% APR for the first six months. Alternatively, you can get $200 cash back, but no introductory APR. This card has no annual fee, and it carries a standard interest rate ranging from 8.74% to 19.74%, depending on your credit history. Check out additional Chase Freedom card reviews for more detailed information.

3. Discover More

With the Discover More Card you can make purchases in rotating categories to earn 5% cash back. During the holiday season, restaurant and fashion purchases return 5% cash back. Unfortunately, you can only earn cash back for up to $300 in purchases. You also have to sign up each quarter for the program or you will not be eligible to receive the discounts. However, as long as you spend at least $3,000 annually on the card, you automatically receive 1% cash back.  The Discover More card has no annual fee, and the standard APR falls between 11.99% and 20.99%. My favorite thing about the Discover More card is the ShopDiscover option. Cardholders can visit the ShopDiscover mall and then click through to certain retailers to earn additional discounts of up to 25%. You can also earn more cash back when you use the gift card redemption options. However, if you tend to carry balances on your credit cards after the holidays, applying this cash back to your existing balance can save you a lot more money in the long run. Keep in mind that many retailers don't accept Discover cards, especially outside of the United States. This may make it challenging to earn cash back rewards in some instances.

4. Target REDcard

The Target REDcard is unique and most valuable to frequent Target shoppers. This card doesn't have a lot of features, but it offers straightforward savings: Use your Target REDcard for anything you buy at Target and receive 5% off your purchase. This is not a cash back rewards program; this is 5% taken off of your purchases at check-out. This simple and convenient program means you don't have to redeem anything. However, these cards usually have low credit lines - my Target REDcard has a limit of $500, and despite repeated requests on my part my credit line has not been increased. The savings can still add up though if you shop frequently at Target. This card has no annual fee, and the standard APR ranges from 13.25% to 22.9%.

5. Chase Sapphire Preferred Card

The Chase Sapphire Preferred Card is offering 50,000 bonus points to new cardholders that spend $3,000 during the first 3 months of use.  If there's any time of the year you can hit the spending threshold, it's now!  In addition, you can bank double rewards on all your travel and dining out this holiday season while still earning one point per dollar spent on everything else. The annual fee is a bit steep at $95, but it's actually waived for the first year of membership.  You will also earn an annual points dividend which is based on 7% of your earned points, and you can rest assured that those points will never expire before you're ready to redeem them.

6. Citi Dividend World MasterCard

This card has many similarities to the Discover More card; however, you receive an upfront bonus and also have the added benefit of being able to use a MasterCard almost anywhere. In addition, with the Citi Dividend World MasterCard, you can receive $150 cash back if you make at least $750 in purchases within the first three months of receiving the card. Citi also offers rotating shopping categories throughout the year, and you can receive 5% cash back for shopping in these categories. Purchases at department, clothing, electronic, and toy stores from now through the end of the year all qualify, and you'll receive 1% cash back for all other purchases with no minimum spending limit. You can earn up to $300 in dividend rewards each calendar year. This card has no annual fee, and the APR ranges between 15.99% and 22.99%.

Final Thoughts

Supplementing your shopping with one of the best cash back credit cards can really pay off during the holiday season.  However, if you lose track of your budget and overspend, your savings will quickly diminish when balances are carried over into January or beyond. So while it's smart to take advantage of all the great cash back deals, make sure you never carry a balance on your credit cards or pay any interest. Adjust your spending habits as necessary, save wherever you can, and get rid of unnecessary credit card balances to make sure you save the most money possible during this holiday shopping season. How do you plan to maximize cash back programs this year? Do you have a favorite rewards credit card for your holiday shopping?  If so, let us know which one and why you love it in the comments section below.

Disclaimer: This content is not provided or commissioned by the company whose products are featured on this site. Any opinions, analyses, reviews or evaluations provided here are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by the Advertiser. This site may be compensated through the Advertiser's affiliate programs.