If your idea of a great night in is ordering food online and browsing the latest sales on your favorite shopping apps, it’s time to up your credit card game. Credit cards for online shopping deliver rewards based on how and where you spend money over the internet.
In this guide, we look at the best online shopping credit cards to earn points, stack rewards and make money off your online buys. Keep reading to learn which cards we recommend.
Credit cards for online shopping typically offer specific benefits related to internet shopping such as higher rewards and extra purchase protections. Card issuers may have their own concrete definition of what constitutes an online buy, but they usually consider items bought online or through an app run by a card-recognized retailer as an online purchase.
Generally speaking, tangible items such as clothes or new devices are included, and less tangible items like utility bills, credits for app-based games and tax payments are out.
Online shopping credit cards can be beneficial if you’re a big fan of internet-based shopping and want to use your buying power to earn rewards.
Beware of cards with exorbitant fees and know ahead of time that some cards, especially those with attractive rewards schemes, may require good to excellent credit to be approved. But if you’re already shopping online a lot, getting a card specifically for that purpose could pay off.
As you browse the best credit cards to use when online shopping, use these factors to narrow down your choices and pick the option that best suits your needs.
Annual fee
Annual fees for credit cards can range anywhere from $0 to well into triple figures. In most cases, no-annual fee credit cards are the clear winners. However, a card with a high fee can be worth it if the welcome bonus or spend-to-rewards ratios outweigh the annual fee.
Welcome bonus
Welcome bonuses are one-time offers that require you to meet specific terms to earn a predetermined award. For example, your new card may offer $300 cash back if you spend $5,000 within six months. Picking cards with a sign-up bonus can land you some serious free cash, but only if you’re comfortable spending and paying off the required amount on time.
Rewards
As you shop online with your credit card, you earn valuable points. However, not all reward programs are built the same. Some rewards credit cards offer more points for specific retailers, while others might award points for travel or groceries.
How to apply for a credit card for online purchases
You can usually apply for an online shopping credit card online. Most card sponsors offer applications on their own websites, and it takes just minutes to process your application.
To apply:
- Gather your personal information, including your Social Security number, government ID (you may need to upload a copy) and relevant financial information (e.g., your estimated annual salary).
- Fill out the application.
- Upload any requested documentation.
- Wait for a response.
Though online shopping is far safer than it used to be thanks to layered site security and other protections, shopping on the internet still opens you up to certain risks.
To stay safe:
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Don’t use public Wi-Fi. Shopping via a public network exposes you to fraudsters who can copy your credit card number and other personal information.
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Update your security features frequently. Only use devices with the latest security measures installed and update software as patches and upgrades are announced.
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Pick cards with zero-liability fraud protection. This way, if you are scammed, there are still safeguards in place.
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Set up fraud alerts. If your card is stolen or cloned, you’ll be notified ASAP.
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Use credit cards over debit cards. Credit cards frequently offer better fraud protection because the purchase money is borrowed rather than taken straight from your checking account.
To get the most out of your credit card when online shopping, follow these expert tips.
Check your credit
To improve your chances of being approved, check your credit score and overall financial health ahead of time. You can do this by pulling your credit report and reading up on what each card looks for in their applicants. Remember, applying for credit can trigger a hard inquiry, which affects your credit score, so apply responsibly.
Be sure about what you’ll use the card for
Don’t get a credit card geared toward online purchases and then use it for eating out. Likewise, don’t use a Walmart card for purchases at Target. You’ll miss out on rewards. Instead, use a generalist card if you aren’t loyal to a single outlet. Alternatively, carry several dedicated cards and use the appropriate one for each spot.
Be careful not to overspend
Credit card purchases are real purchases that cost real money. Only spend what your budget allows and understand what you’ll pay in interest if you have to carry over a balance from month to month.
Maximize rewards
To maximize your rewards, match your spending to your welcome bonus offer, tailor your purchases to whatever card has the highest rewards for that spending category and redeem points strategically. Redemption is often less than straightforward — some cards offer better reward ratios for travel purchases or other trades versus redeeming points for cash.
If you’re considering using a credit card online as you shop but aren’t sure that’s the best route for your needs, there are other ways to fill your digital cart without relying on credit.
Debit cards
Instead of shopping with credit online, use your debit card to purchase items with money taken directly from your bank account. This approach can feel less complicated because you see the money come straight out of your bank balance. It feels more real, and it can be easier to keep track of your total monthly spend.
However, debit cards typically offer fewer protections for online shopping, and if you are the victim of fraud, you will be out of the stolen amount until your bank’s fraud department can straighten everything out. You also won’t get any rewards or freebies like you would with a cash-back credit card for example.
Store credit cards
Store credit cards often come with attractive terms, including low annual fees and much higher point ratios per dollar spent for purchases made through their own apps and websites. More specifically, grocery credit cards can be greatly beneficial to gain cash-back or points on your weekly purchases.
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All information for The Hilton Honors American Express Surpass® Card has been collected independently by LA Times Compare. The card details on this page have not been reviewed or provided by the card issuer.
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For rates and fees of the Blue Cash Everyday® Card from American Express, please visit this page.
For rates and fees of The Platinum Card® from American Express, please visit this page.
For rates and fees of the Hilton Honors American Express Surpass® Card, please visit this page.
For rates and fees of the American Express® Gold Card, please visit this page.