Despite what you may hear, gift cards and other forms of pre-paid cards do absolutely
nothing to help you build or rebuild your credit reports and credit scores. So, what
should you do with unwanted gift cards? The simple answer is…use them or sell them!
Over the past few years a slew of websites has popped up serving the demand ofconsumers who want to get rid of their gift cards and make a little money at the same
time. To make matters better for consumers, the CARD Act now requires that gift cards
retain their value (minus some small inactivity fees) for a full five years after they’ve
been issued. Point being, all of that plastic collecting dust on your dresser can easily be
converted to cash.
Some estimates identify that roughly 27% of gift card recipients don’t ever use their
cards. Forbes Magazine recently identified that there’s some $60 billion in unused gift
cards. So how do these websites work?
These “gift card buying” websites will pay you a percentage of the remaining value of
your gift card. So, for example, if you have a $100 gift card from the Home Depot they
may buy it for $80, and then resell it to someone else for $90. You converted plastic to
$80, someone else bought a $100 card for $90, and the website made $10 for facilitating
the transaction. The value you’ll be paid for your card will be based on the demand for
the card in the resale market. If there’s little demand then you’ll be paid a much lower
percentage on the dollar.
If you’d like to find a list of websites that buy and resell gift cards do a Google search
on “Sell my gift card” and you’ll find several reputable companies. Shop around to see
which one will give you the most money for your gift cards. And the next time you want
to give someone a gift card think about getting it from one of those sites as you’ll get a
slight discount.
Michael B. Citron is an internationally known public speaker and author. He lectures for professional associations worldwide. Michael is a serial entrepreneur who is dedicated to living the American dream, and helping others to do the same. His role at DisputeSuite.com has placed him in the spotlight of the credit repair industry. DisputeSuite is the largest provider of technology and education services to the industry, and has been a catalyst in the forward movement to standardize the credit repair industry.
