Buying Gift Cards to Maximize Credit Card Rewards
Why buy gift cards for rewards
Gift cards let you capture a bonus rate you would otherwise miss. Buying a merchant gift card at a store that codes for a bonus (some cards bonus grocery, drugstore, or office-supply stores that sell third-party gift cards) earns that elevated rate, which you then spend at the merchant later. It is also a clean way to put spending toward a welcome-bonus minimum on things you will use.
Stacking and portals
Gift cards can add a layer to a stack: buy a discounted gift card or buy one through a shopping portal that bonuses gift-card retailers, then use it on a purchase that earns again. Done thoughtfully on planned spending, it compounds your return. The same idea lets you prepay future spending at today bonus rate.
The risks
Be disciplined: only buy gift cards you will genuinely spend, since they are hard to return and easy to forget. Watch for activation fees that eat the rewards, and beware gift-card scams (never buy gift cards to pay a supposed bill, fee, or official). Some cards exclude gift-card purchases from bonuses, and overbuying ties up money, so keep it to amounts you will use. See how to maximize rewards.
Frequently asked questions
Related reading
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