What to Look for in the Best Gift Credit Cards

by : Max Anderson

When it comes to gift credit cards, they are definitely not all created equal. For as many good gift cards that there are available, there are just as many bad ones to match them. How do you tell the difference between the good and the bad? These pointers will help you navigate the sometimes-confusing world of gift credit cards with ease.

A Gift Is a Gift

Anyone with any etiquette sense knows that a gift is a gift and a gift recipient should not have to pay for that gift -- but that's exactly what some gift credit cards require gift recipients to do. Before you decide on any single gift credit card, make sure you know exactly what fees that card will require and who those fees will be charged to.

Almost any gift credit card is going to require some kind of a fee, but it should be you, the gift giver, who is responsible for that fee. If the card requires your gift recipient to pay an activation fee or a per-transaction fee, it's not the right card for your gift-giving needs.

What's It Gonna Cost You?

Another thing you need to ask yourself when buying gift credit cards is how much the card costs. It's not uncommon to pay $5 to $10 for a gift card, in addition to its face value. This means your $25 gift may cost you $35 in the long run. Just make sure you don't pay more than that. If a card costs more than $10 plus the face value of the card, it's not worth it.

Where Does The Money Go?

Some gift credit cards will take money away from the available balance each month the card isn't used and some cards expire altogether. This means your gift card might go from a value of $50 to $0 in twelve months if your gift recipient doesn't use it right away.

Your best bet is to go with one of the gift credit cards that charges a minimum monthly fee for any balance not used after six months. For example, a $50 card that isn't used for six months could incur a fee of $2 per month for each month the balance is unused. That's a lot better than losing the entire $50 in one lump sum.

It's true that there are some really bad gift cards on the market. If you keep the above tips in mind and read the terms of the different cards available carefully, however, you should have no problem finding the best gift credit cards for sale.