I Save Hundreds of Dollars Each Year With Gift Cards. Here’s My Secret

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All information about the Chase Freedom Flex was collected independently by Slickdeals and has not been reviewed by the issuer.

As a certified credit expert and founder of HerCreditMatters.com, I've been saving hundreds of dollars on my family's household spending each year using this gift card strategy. And now, I'll share it with you.

Using a rewards credit card when you buy gift cards can help you earn valuable points, miles or cash-back perks. Yet all rewards credit cards aren't equal. One card might give more rewards for dining or travel purchases, while another card might reward you more for grocery or gas purchases. If you want to maximize your rewards-earning potential, it's important to choose the right credit card for each purchase.

Personally, I try to never use a credit card that gives me just 1 point per purchase (or 1% cash back) for any transaction. While you won't find a credit card that pays higher rewards specifically for gift card purchases, several cards offer higher category spending bonuses at locations that sell gift cards. Below are a few of my favorites.

1. Ink Business Cash® Credit Card

The Ink Business Cash Credit Card offers elevated cash back at office supply stores. 

Perhaps the most valuable card you can use to earn extra cash back or points on gift card purchases is the Ink Business Cash. (If you have the older Ink Business Plus Card—now closed to new applications—this card features the same category bonus.)

The Ink Business Cash Credit Card gives you a high cash-back rate on purchases made from office supply stores. So, if you purchase a Lowes gift card from an office supply store like Staples using this credit card, you earn extra cash back through rewards.

Ink Business Cash® Credit Card

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Secure application on issuer’s website

• Our Rating 4.5/5 How our ratings work
• APR17.99% - 23.99% (Variable)
• Annual Fee$0
• Sign-Up Bonus $750Cash Bonus More Info

  Earn $350 when you spend $3,000 on purchases in the first three months and an additional $400 when you spend $6,000 on purchases in the first six months after account opening

Business owners looking to earn a high rate of cash back on common business expenses like office supplies and internet could get a lot of value from this card. The trade-off for the high cash-back rate, though, is a lower spend cap than you’ll find with other Ink Business cards.

• Overview
• Pros & Cons

Overview

The Ink Business Cash® is legendary for its offer of 5% cash back for purchases at office supply stores and on many telecommunications services, with no annual fee. And while 5% cash back sounds great, these rewards can be much more valuable when paired with another Chase credit card that allows transfers to airline miles or hotel points. In addition to earning excellent cash-back rewards, it also includes competitive introductory offers and provides cards for employees at no additional charge.

Pros

• No annual fee
• 5x back on a broad array of business spending categories
• Robust travel and purchase protections
• Don't need a full-fledged business to apply

Cons

• Businesses that don't spend on the category bonuses won't benefit

How to Boost the Earnings

Boost your earning power even more if you have the Chase Sapphire Preferred® Card or Chase Sapphire Reserve®. When you earn cash back rewards on your Ink Business Cash card, they're calculated as points. One dollar cash back equals 100 points.

You can then redeem points for cash back or transfer them to a Chase Ultimate Rewards card. By moving cash-back rewards to your Sapphire Reserve, you can redeem them for 50% more value (for travel purchased through the Chase Travel℠ portal) or transfer them to Chase's wide selection of airline and hotel partners. And even now, during the pandemic, both cards offer new ways to use your points through Chase's Pay Yourself Back program.

Compare Chase Ink Business Credit Cards

Credit Card	Intro Bonus	Annual Fee	Rewards Rate	Learn More
Ink Business Unlimited® Credit Card Apply Now	$900Cash Bonus More Info Earn $900 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening	$0	1.5%Cashback More Info Earn unlimited 1.5% cash back on every purchase made for your business. The advertised rewards type is cash back, but it’s important to note that you’re technically earning Chase Ultimate Rewards points (which can then be converted to cash back).	Apply Now
Ink Business Cash® Credit Card Apply Now	$750Cash Bonus More Info Earn $350 when you spend $3,000 on purchases in the first three months and an additional $400 when you spend $6,000 on purchases in the first six months after account opening	$0	1% - 5%Cashback More Info Earn 5% cash back on your first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year. It also offers you 2% cash back on your first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year.	Apply Now
Ink Business Preferred® Credit Card Apply Now	90,000Chase Ultimate Rewards Points More Info Earn 90,000 bonus points after you spend $8,000 on purchases in the first 3 months from account opening. Dollar Equivalent: $2,070 (90,000 Chase Ultimate Rewards Points * 0.023 base)	$95 More info This fee includes extra cards for authorized users, such as employees, at no additional charge.	1x - 3xPoints More Info Earn 3x points on the first $150,000 of combined spending in a number of key business categories	Apply Now
Ink Business Premier® Credit Card Apply Now	$1,000Cash Bonus More Info Earn $1,000 bonus cash back after you spend $10,000 on purchases in the first 3 months from account opening.	$195	Up to 2.5%Cashback More Info Earn unlimited 2.5% total cash back on purchases of $5,000 or more and unlimited 2% cash back on all other business purchases.	Apply Now

2. Chase Freedom Flex℠

The Chase Freedom Flex℠ Card offers elevated points in rotating categories each quarter (up to $1,500).

Formerly known as the Chase Freedom®, the Chase Freedom℠ Flex Card features rotating bonus categories each quarter where you can earn 5x cash back on up to $1,500 in purchases. In the past, those bonus categories have included grocery stores, drug stores and gas stations—locations where you can easily make a gift card purchase.

The Chase Freedom is worth mentioning as a good potential option for the future since its rotating categories have routinely included locations where you can buy gift cards in the past.

Chase Freedom Flex℠

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• Our Rating 4.5/5 How our ratings work
• APR19.99% - 28.74% (Variable)
• Annual Fee$0
• Sign-Up Bonus $200Cash Bonus More Info

  Receive a $200 bonus after you spend $500 in the first three months.

The Chase Freedom Flex card expands on the already lucrative Chase Freedom card. The Freedom Flex also gives cardholders access to Chase's ultra-valuable rewards platform, where you’ll get plenty of redemption options at good rates. Plus, if you have one of the program’s travel cards, you can transfer points from your Freedom Flex to your travel card account and get even more value and flexibility with how you redeem.

• Overview
• Pros & Cons

Overview

Getting more in cash back is a clear win for anyone who is considering the Freedom Flex card. This card is ideal for anyone who want to maximize cash-back rewards with the option to get more value with travel redemptions.

Pros

• Generous earnings on select rotating categories each quarter
• Cellphone and trip insurance coverage
• No annual fee
• Ability to convert rewards to transferable Ultimate Rewards points

Cons

• Can't transfer Chase points to travel partners unless paired with select products

How to Boost the Earnings

Like the Ink Business Cash Card, you can transfer cash back points earned on your Chase Freedom Flex Card to a Chase Sapphire Preferred or Chase Sapphire Reserve. Once transferred, you can use the Chase Travel℠ portal to redeem the points for more value—50% more with Sapphire Reserve or 25% more with Sapphire Preferred.

Often, however, you'll get the best value when you transfer points to a Chase airline or hotel partner.

Recommended Cash-Back Credit Cards

Credit Card	Rewards Rate	Intro Bonus	Annual Fee	Learn More
Chase Freedom Unlimited® Apply Now	1.5% - 5%Cashback More Info Enjoy 5% cash back on travel purchased through Chase TravelSM, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases	1.5%Extra Cash Back More Info Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That’s 6.5% on travel purchased through Chase TravelSM, 4.5% on dining and drugstores, and 3% on all other purchases.	$0	Apply Now
Wells Fargo Active Cash® Card Apply Now Rates & Fees	2%Cashback More Info Earn unlimited 2% cash rewards on purchases.	$200Cash Bonus More Info Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.	$0	Apply Now Rates & Fees
Citi Double Cash® Card Apply Now Rates & Fees	2%Cashback More Info Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, a special travel offer, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/25.	$200Cash Bonus More Info Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.	$0	Apply Now Rates & Fees
TD Cash Credit Card Learn More Applicants must reside in CT, DC, DE, FL, MA, MD, ME, NC, NH, NJ, NY, PA, RI, SC, VA or VT. Applicants must reside in CT, DC, DE, FL, MA, MD, ME, NC, NH, NJ, NY, PA, RI, SC, VA or VT.	1% - 3%Cashback More Info Choose your top two spend categories to earn unlimited 3% and 2% Cash Back. Earn unlimited 1% Cash Back on all other eligible purchases.	$200Cash Bonus More Info Earn $200 Cash Back when you spend $1,000 on eligible purchases within the first 90 days of opening your account.	$0	Learn More
TD Double Up℠ Credit Card Learn More Applicants must reside in CT, DC, DE, FL, MA, MD, ME, NC, NH, NJ, NY, PA, RI, SC, VA or VT. Applicants must reside in CT, DC, DE, FL, MA, MD, ME, NC, NH, NJ, NY, PA, RI, SC, VA or VT.	2%Cashback More Info Earn unlimited 2% Cash Back on all eligible purchases.	$150 More Info Earn $150 Cash Back in the form of a statement credit when you spend $1,000 within the first 90 days after account opening.	$0	Learn More

3. The Amex EveryDay® Preferred Credit Card

The Amex Everyday Preferred Credit Card offers elevated points at U.S. grocery stores.

Another place to easily find gift cards for a number of retailers is at your local grocery store. If you have a credit card like Amex EveryDay Preferred Credit Card, which earns higher rewards on grocery purchases, using the card at grocery stores could be a smart choice for holiday gift card purchases.

How to Boost the Earnings

When you use your Amex EveryDay Preferred card at least 30 times in a month, you'll qualify for 50% more Membership Reward points. You can also transfer any American Express Membership Rewards points you earn to a partner hotel or airline and potentially get more value when you're ready to redeem them.

Before You Begin Getting Deals and Saving Money on Gift Cards

You should only use credit cards to earn rewards if you can commit to paying off your full statement balance every month. Otherwise, credit card rewards simply aren't worth the trade off.

When you revolve an outstanding balance on your credit card from month to month, you'll get hit with interest fees. Interest fees can reduce or wipe out the value of any credit card rewards you earn. Plus, a higher account balance on your credit report could raise your balance-to-limit ratio (aka revolving utilization). This triggers a drop in your credit score.

But if you use your credit cards the right way and pay them off in full (and on time) every month, credit card rewards can be extremely valuable. You can redeem credit card points for my favorite type of reward—free travel—or use them for something else that appeals to you.

Recommended Travel Credit Cards

Credit Card	Intro Bonus	Annual Fee	Rewards Rate	Learn More
Chase Sapphire Preferred® Apply Now	60,000Chase Ultimate Rewards Points More Info Get up to $1,050 in Chase Travel℠ value. Earn 60,000 bonus points after $4,000 in purchases in your first 3 months from account opening. That’s worth $750 when redeemed through Chase Travel. Plus, get up to $300 in statement credits on Chase Travel purchases within your first year. Dollar Equivalent: $1,380 (60,000 Chase Ultimate Rewards Points * 0.023 base)	$95	1x- 5xPoints More Info Enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, $50 Annual Chase Travel Hotel Credit, plus more.	Apply Now
Southwest Rapid Rewards® Plus Credit Card Apply Now	50,000Southwest Rapid Rewards Points More Info Earn 50,000 bonus points after spending $1,000 on purchases in the first 3 months from account opening. Dollar Equivalent: $700 (50,000 Southwest Rapid Rewards Points * 0.014 base)	$69	1x - 2xPoints More Info Earn 2X points on Southwest® purchases. Earn 2X points on Rapid Rewards® hotel and car rental partners. Earn 2X points on local transit and commuting, including rideshare. Earn 2X points on internet, cable, and phone services; select streaming. Earn 1X points on all other purchases.	Apply Now
Citi Custom Cash® Card Apply Now Rates & Fees	$200Cash Bonus More Info Earn $200 in cash back after you spend $1500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® points, which can be redeemed for $200 cash back.	$0	1% - 5%Cashback More Info Earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter. Also, earn unlimited 1% cash back on all other purchases. Special Travel Offer: Earn an additional 4% cash back on hotels, car rentals, and attractions booked on Citi Travel℠ portal through 6/30/2026.	Apply Now Rates & Fees
Citi Strata Premier℠ Card Apply Now Rates & Fees	70,000Citi ThankYou® Points More Info Earn 70,000 bonus ThankYou® Points after spending $4,000 in the first 3 months of account opening, redeemable for $700 in gift cards or travel rewards at thankyou.com. Dollar Equivalent: $1,260 (70,000 Citi ThankYou® Points * 0.018 base)	$95	1X-10XPoints More Info 10x on Hotels, Car Rentals, and Attractions booked through CitiTravel.com 3x -- Earn 3 Points per $1 spent on Air Travel and Other Hotel Purchases 3x -- Earn 3 Points per $1 spent on Restaurants 3x -- Earn 3 Points per $1 spent on Supermarkets 3x -- Earn 3 Points per $1 spent on Gas and EV Charging Stations 1x -- Earn 1 Point per $1 spent on All Other Purchases	Apply Now Rates & Fees

FAQs

• Can you earn credit card points for travel from gift card purchases?

  This depends on the card issuer’s rules on rewards from gift card purchases. If your card issuer allows gift card purchases for credit card points, then it is possible to use these points for travel rewards such as airline miles, hotels or car rentals.

  Check your credit card terms carefully because some companies specifically say gift card purchases do not qualify for travel rewards. It may also depend on which store you purchase the gift card from, since your card may limit the rewards to participating retailers.

• How can buying gift cards earn you rewards?

  Some credit cards may allow cardholders to earn bonus rewards at specific stores, retailers or service providers. This may include gift card purchases from a participating retailer as well, potentially allowing you to earn extra rewards from buying gift cards.

• Can you buy gift cards with a credit card?

  Yes, you can buy gift cards with a credit card, but not all card issuers will count gift card purchases toward rewards.

  Additionally, your card company may frown upon indiscriminate purchasing of gift cards to “work” the system, and the result could negatively affect future card applications. Credit card companies may monitor whether your gift card purchases coincide with a “legitimate” purchase from a retailer or whether it seems you’re just purchasing large quantities of gift cards to build up points.

• When should you redeem credit card rewards?

  The answer is different for each situation. You can usually use your rewards whenever you want to, but there are some scenarios where it’s best to redeem your rewards right away. For example, if your rewards will expire, make sure to redeem them before they do.

  Additionally, sometimes there are incentives or offers to use your rewards on certain perks, such as deals on travel. Timing your redemptions around these incentives may be a smart move. And finally, if you plan to cancel your card, make sure to use your rewards before ending the program.