Most products on this page are from partners who may compensate us. This may influence which products we write about and where and how they appear on the page. However, opinions expressed here are the author's alone, not those of any bank, credit card issuer, airline or hotel chain.
All information about the Chase Freedom Flex was collected independently by Slickdeals and has not been reviewed by the issuer.
| Editor's Note: It's worth noting that some card issuers have instituted policies banning gift card purchases from earning rewards. This is largely due to abuse of the system. However, your experience will vary depending on the credit card issuer, dollar amount and frequency of gift card purchases and retail outlet. Consult the terms and conditions of your card for complete details. |
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 5% 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 5% cash back on purchases made from office supply stores (up to $25,000 per year). So, if you purchase a $100 Lowes gift card from an office supply store like Staples using this credit card, you earn an extra $5 cash back for yourself.
Ink Business Cash® Credit Card
- Our Rating 4.5/5 How our ratings work Read the review
- APR18.49% - 24.49% (Variable)
- Annual Fee$0
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Sign-Up Bonus
$750Cash Bonus
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
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.
Read the reviewPros
- 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
While a 5% rewards return is already impressive, 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 Ultimate Rewards 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 |
|---|---|---|---|---|
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$750Cash Bonus
Earn $750 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening |
$0 |
1.5%Cashback
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 |
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$750Cash Bonus
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
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 |
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100,000Chase Ultimate Rewards Points
Earn 100,000 bonus points after you spend $8,000 on purchases in the first 3 months from account opening. Dollar Equivalent: $2,300 (100,000 Chase Ultimate Rewards Points * 0.023 base) |
$95
This fee includes extra cards for authorized users, such as employees, at no additional charge. |
1x - 3xPoints
Earn 3x points on the first $150,000 of combined spending in a number of key business categories |
Apply Now |
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$1,000Cash Bonus
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
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 5x 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.
2024 Freedom Flex Bonus Categories
| Quarter | Bonus Categories |
|---|---|
|
January to March |
Grocery stores (excluding Walmart and Target) |
|
April to June |
Hotels |
|
July to September |
Coming soon |
|
October to December |
Coming soon |
Chase Freedom Flex℠
- Our Rating 4.5/5 How our ratings work
- APR20.49%-29.24% (Variable)
- Annual Fee$0
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Sign-Up Bonus
$200Cash Bonus
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 Ultimate Rewards, which is arguably the most versatile rewards platform, and 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
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 Ultimate Rewards 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 |
|---|---|---|---|---|
|
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1.5% - 5%Cashback
Enjoy 5% cash back on travel purchased through Chase Travel, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases. |
1.5%Extra Cash Back
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 Travel, 4.5% on dining and drugstores, and 3% on all other purchases. |
$0 | Apply Now |
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2%Cashback
Earn unlimited 2% cash rewards on purchases. |
$200Cash Bonus
Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months. |
$0 |
Apply Now Rates & Fees |
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2%Cashback
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, for a limited time, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/24. |
$200Cash Bonus
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 |
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1% - 5%Cashback
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. |
$750Cash Bonus
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 | Apply Now |
3. The Amex EveryDay® Preferred Credit Card
The Amex Everyday Preferred Credit Card offers 3x points at U.S. grocery stores (Up to $6,000 Annually)
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. So, instead of a gift card purchase at a grocery store earning you 3x points, it could earn you 4.5x 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 |
|---|---|---|---|---|
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60,000Chase Ultimate Rewards Points
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. Dollar Equivalent: $1,380 (60,000 Chase Ultimate Rewards Points * 0.023 base) |
$95 |
1x- 5xPoints
The card offers 5x points per dollar on Chase Travel℠, 3x points on dining (including eligible takeout and delivery services), as well as 3x points on select streaming services and online grocery purchases (excluding Target, Walmart and wholesale clubs). This card earns 2x points on all other travel spending and 1x point per dollar everywhere else. Chase broadly defines travel to include not just airfare, hotels and rental cars, but expenses like parking, tolls and public transit too. |
Apply Now |
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50,000Southwest Rapid Rewards Points
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
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 |
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20,000United MileagePlus Miles
Earn 20,000 bonus miles after you spend $1,000 on purchases in the first 3 months your account is open. Dollar Equivalent: $280 (20,000 United MileagePlus Miles * 0.014 base) |
$0 |
1x - 2xPoints
Earn 2X United miles per dollar on United purchases, local transit and commuting and at gas stations. You’ll earn 1X mile per dollar on all other purchases. |
Apply Now |
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60,000Citi ThankYou Points
Earn 60,000 bonus ThankYou Points after making $4,000 worth of purchases during the first three months of account opening. Dollar Equivalent: $1,080 (60,000 Citi ThankYou Points * 0.018 base) |
$95 |
1X-10XPoints
10X total ThankYou® Points per $1 spent on hotel, car rentals and attractions (excluding air travel) booked on the Citi Travel℠ portal through June 30, 2024. 3X -- Earn 3 Points per $1 spent at Gas Stations, Air Travel and Other Hotels 3X -- Earn 3 Points per $1 spent at Restaurants and Supermarkets 1X -- Earn 1 Point on All Other Purchases |
Apply Now Rates & Fees |
FAQs
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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.
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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.
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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.
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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.
Michelle Lambright Black
Michelle Black is founder of CreditWriter.com and HerCreditMatters.com. Michelle is a leading credit card journalist with over a decade and a half of experience in the financial industry. She’s an expert on credit reporting, credit scoring, identity theft, budgeting, small business, and debt eradication. Michelle is also a certified credit expert witness and personal finance writer.
