The best credit card for gift card rewards is the Bank of America® Customized Cash Rewards credit card, as it offers 3% cash back in a category of your choice and 2% back at grocery stores and wholesale clubs (up to $2,500 spent quarterly), plus unlimited 1% cash back on all other purchases. Picking drugstores as the 3% category enables you to earn bonus rewards at three types of stores that sell gift cards.
Best Credit Cards for Gift Card Rewards
- Best Overall: Bank of America® Customized Cash Rewards credit card
- Best for Gift Cards from Amazon: Amazon.com Credit Card
- Best for Gift Cards from Grocery Stores: Blue Cash Preferred® Card from American Express
- Best for Gift Cards from Drugstores: Chase Freedom Unlimited®
- Best for Rotating Categories: Chase Freedom Flex℠
Keep in mind that some merchants won’t allow you to buy a gift card with a credit card for fraud protection purposes. People often use stolen credit cards to buy gift cards, so some stores have stopped permitting those purchases altogether.
In addition, be cautious not to abuse your credit card rewards program by buying gift cards. If you buy gift cards just to earn rewards, you could wind up losing your rewards or putting your account in jeopardy.
Redeeming Credit Card Rewards for Gift Cards
It’s worth noting that many rewards credit cards allow you to redeem rewards for gift cards directly. In fact, gift cards can be a flexible and worthwhile redemption option. Some card issuers also have periodic sales on gift card redemptions, during which you can get even more value for your rewards.
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