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Earn a free gift card or buy one from a retail store
Gift cards purchased directly from store retailers have no fees, whereas cards from the big four credit card issuers and major shopping mall operators typically come with fees and expiration dates. Yet some major credit cards offer you the ability to earn free gift cards via rewards programs.
Gift card purchases are expected to reach an all time high this holiday shopping season. Last year the average value per gift card was $53, which was $7 higher than the year before. Gift cards make life easier for both parties: the giver and the receiver... the giver saves time by not having to shop for that 'perfect gift', and the receiver can pick-out and purchase exactly what he wants.
When choosing a gift card, as always be sure to carefully read the fine print and to understand the terms and conditions. The Federal Trade Commission (FTC) oversees gift cards and requires all gift cards to include a printed guide to terms and conditions with the card. Look for if and when the card expires, if there are fees for checking the balance or any other rules. If you're giving a gift card, be sure you pass along the terms and conditions to the recipient.
The distinction between cards with fees and expiration and those without them depends on the issuer. Retailers' gift cards; known as closed-loop cards since they can only be used at that particular retailer, have no fees.
Cards which can be used at various places; known as open-loop cards, have fees per card and are valid until an expiration date, after which monthly deductions are made until the balance is zero. The open-loop cards are from American Express, Discover, MasterCard and Visa and the six largest operators of shopping malls.
While open-loop gift cards cost from $2.95 to $6.95 to purchase and have expiration restrictions, they can be used anywhere those credit cards are accepted. Consumers don't seem to be deterred by the fee to purchase these use-anywhere gift cards.
Major issuers also offer gift cards as rewards for using their cards. Below are major credit cards which offer gift cards:
Chase Platinum Visa® - The Chase Platinum Visa® is an overall good platinum card that offers a rewards program. You'll earn one point for every dollar you spend, and points are redeemable for cash back, merchandise, travel, and gift cards. The card has a 0% introductory rate on purchases and balance transfers for the first twelve months and a reasonable interest rate on purchases and balance transfers after the introductory rate expires. The card also has no annual fee. There is an interest-free grace period when you pay your bill in full each month, but the card uses a more costly method of computing balances, and therefore, it is not ideal if you plan to carry a balance. The card does offer many platinum benefits including online account access and various travel services.
BP Visa® Rewards Card - The BP Visa® Rewards Card is ideal if you purchase your gas at BP gas stations and you would like to take advantage of the rebate program. You'll earn a 5% rebate for purchases made at BP gas stations; a 2% rebate for purchases made at dining establishments, airlines, lodging facilities, and on auto rentals; and a 1% rebate for all other purchases. Plus, all rebates are doubled during the first two billing cycles. Each time you earn $25 in rebates, you'll have your choice of receiving a BP gift card, a check made payable to you, or of making a donation to The Conservation Fund. This card has no annual fee, there is a 0% introductory rate on purchases and balance transfers for the first six months, and the interest rate is reasonable after the introductory expires. The card also provides you with many common benefits including online account access and no liability for unauthorized purchases.
Borders 3.2.1SM Visa® - The Borders 3.2.1SM Visa® rewards you with gift cards for shopping at the Borders family of stores. You'll earn three points per dollar spent at Borders®, Borders Express, Waldenbooks®, Borders.com, and Waldenbooks.com; two points per dollar spent on gas, dining, and grocery purchases; and one point per dollar for all other purchases. For every 2,500 points you earn, you may choose to receive a $25 Borders Gift Card. Points are also redeemable for cash, travel rewards, gas and restaurant gift cards, and more. Plus, you'll get 1,000 bonus points after your first purchase. This card has an average interest rate for purchases and balance transfers with no annual fee. There is also an interest-free introductory offer on purchases and balance transfers for the first twelve billing cycles. Common platinum benefits and services are provided as well.
Advanta Platinum BusinessCard with Rewards - The Advanta Platinum BusinessCard with Rewards offers business owners the choice of either a cash back reward program or a travel reward program as well as many business services and discounts. The cash back program rewards you with a 5% rebate on purchases of gasoline and diesel fuel; utilities and telecommunications; computers, computer supplies, electronics and office supplies; and online advertising services. The travel reward program allows you to earn points that are redeemable for travel, merchandise, bonus cards, and gift cards. You'll receive a personalized card design, free business checks, and access to online statements and management reports that are compatible with Quicken® and Microsoft Money® software. Plus, you'll get discounts on products and services at participating merchants and retailers. This card offers a very low interest rate for purchases and cash advances, an interest-free introductory rate for balance transfers for 15 months, and no annual fee. Common platinum services and benefits are also provided to protect your purchases and employees.
American Express® Preferred Rewards Gold Card - The American Express® Preferred Rewards Gold Card is ideal if you want a charge card with an excellent rewards program and an array of benefits. Through the rewards program, you'll earn one point per dollar spent on all purchases. Plus, you'll receive 10,000 bonus points after your first purchase, which is equivalent to a $100 gift card at participating merchants and retailers. Points are redeemable for travel on over 21 airlines and for plenty of other rewards. There is no limit to the amount of points that you can earn. The card does have a high annual fee of $125, but this fee is waived the first year. This card also provides many benefits and services including purchase protection services, auto rental insurance, various merchant discounts, and emergency travel assistance services. You'll also have access to Gold Card Events for exclusive tickets to concerts, shows, and sporting events.
Disney Rewards® Visa® Card - The Disney Rewards® Visa® Card is an ideal card for those who love Disney. Through the reward program, you'll earn a 1% rebate for every dollar spent on the card (1 Disney Dream Reward Dollar is awarded per $100 spent). You can earn up to 750 Disney Dream Reward Dollars per year. Reward Dollars can be redeemed at Disney hotels, restaurants, theme parks, and for merchandise. Plus, you'll get a $15 Disney Store Gift Card after your first transaction. This card also offers 0% APR financing for up to six months on select Disney vacation packages. The interest rate on purchases is reasonable, and the card has no annual fee. There is also an interest-free introductory period on purchases and balance transfers for the first twelve months. Common services and benefits are provided as well.
Advanta Life of Balance Platinum Card - The Advanta Life of Balance Platinum Card offers business owners the choice of either a cash back reward program or a travel reward program and a very low fixed APR for the life of the loan on balances transferred within the first three months. The cash back program rewards you with up to a 6% rebate on purchases in the category of your choice and up to a 2% rebate on all other purchases, while points earned through the travel reward program are redeemable for travel, merchandise, bonus cards, and gift cards. You'll receive a personalized card design, free business checks, and access to online statements and management reports that are compatible with Quicken® and Microsoft Money® software. Plus, you'll get discounts on products and services at participating merchants and retailers. This card offers a reasonably low interest rate for purchases and cash advances with no annual fee. Common platinum services and benefits are also provided to protect your purchases and employees.
Chase Platinum MasterCard® - The Chase Platinum MasterCard® is an overall good platinum card that offers a rewards program. You'll earn one point for every dollar you spend, and points are redeemable for cash back, merchandise, travel, and gift cards. The card has a 0% introductory rate on purchases and balance transfers for the first twelve months and a reasonable interest rate on purchases and balance transfers after the introductory rate expires. The card also has no annual fee. There is an interest-free grace period when you pay your bill in full each month, but the card uses a more costly method of computing balances, and therefore, it is not ideal if you plan to carry a balance. The card does offer many platinum benefits including online account access and various travel services.
Bank of America Visa Signature® WorldPoints™ Rewards - The Bank of America Visa Signature® WorldPoints™ Rewards, issued by FIA Card Services, N.A., is designed for those who want a very low interest rate and a diverse reward program that allows you to choose from a variety of rewards. Through the reward program, you'll earn one point for every dollar you spend. Points can be redeemed for gift cards, merchandise, cash rebates, and travel rewards. Plus, there is no limit to the amount of points that can be earned. The card has no annual fee, there is a 0% introductory offer on balance transfers and cash advance checks for the first twelve billing cycles, and the rate for purchases and balance transfers is very low after the introductory rate expires. You'll also receive many benefits and services including fraud protection services, online access, and a personal concierge service.
Citi® Diamond Preferred® Rewards Card - The Citi® Diamond Preferred® Rewards Card offers you the chance to earn a variety of rewards for your everyday purchases. Through the reward program, you'll earn five points for every dollar spent at supermarkets, drugstores, and gas stations for the first twelve months, one point thereafter, and one point for every dollar spent on all other purchases. You'll also earn 6,000 bonus points with your first purchase, which is equal to a $50 gift card. Points are redeemable for dining, travel, various merchandise, gift certificates, AT&T phone cards, rebate credits on your account, and APR point reductions for your card account. This card has a reasonable interest rate for purchases and balance transfers with no annual fee, and it does offer an interest-free introductory period on balance transfers for up to twelve months. A wide array of standard platinum benefits and services are also provided.
CitiBusiness® Card with ThankYouSM Network - The CitiBusiness® Card with ThankYouSM Network is for business owners who want to earn rewards for business and employee purchases. Through the reward program, you'll earn three points per dollar spent at certain office supply merchants and on professional services, and one point per dollar spent on all other eligible purchases. You'll also receive 10,000 bonus points after your first purchase, which is equal to a $100 gift card. Points can be redeemed for airline tickets, cruises, vacation packages, electronics, gift cards, and more. This card has a reasonable interest rate for purchases, no annual fee, and an interest-free introductory period on balance transfers for twelve months, so you can consolidate your business expenses. It also provides common benefits and services to protect your purchases and employees.
Citi® mtvU™ Platinum Select® Visa® Card for College Students - The Citi® mtvU™ Platinum Select® Visa® Card for College Students rewards you for maintaining a high GPA and making your payments on time. You'll earn five points per dollar spent at restaurants, bookstores, record stores, movie theaters, and on video rentals, and you'll earn one point per dollar spent everywhere else. Plus, you'll earn 25 points for making payments on time and up to 2,000 points twice a year depending on your GPA. Points can be redeemed for gift cards, CDs, VIP mtvU Spring Break Passes, tickets to the MTV Video Music Awards, and airline tickets. You'll also get a 10% discount on purchases made at the MTV online store and the MTV New York City Store. This card offers an interest-free introductory period for all transactions with no annual fee, but the rate for purchases is above average after the introductory rate expires. Many platinum benefits and services are provided.
Citi® ProfessionalSM Card - The Citi® ProfessionalSM Card is ideal for consolidating your professional and personal expenses while earning great rewards. Through the reward program, you'll earn three points for every dollar spent at restaurants, gas stations, certain office supply merchants, and on auto rentals, and one point for every dollar spent on all other purchases. Plus, you'll receive 10,000 bonus points after your first purchase, which is equal to a $100 gift card. Points are redeemable for air travel, statement credit, gift cards, merchandise, and more. This card also offers an online expense reporting tool that helps you organize your online statements for billing or reimbursement. The card has a reasonable interest rate for purchases and balance transfers with no annual fee, and it does offer an interest-free introductory period for balance transfers for the first nine months of cardmembership. Standard benefits and services are also provided.
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