Though the latest data shows us that inflation has cooled down a tiny bit, Americans are no doubt feeling cash-strapped and uncertain about what the economy will look like in the months ahead.
If you're feeling the strain on your wallet these days, you're not alone. In fact, your wallet may actually be a good place to look for some extra spending money — that is, in the form of unused gift cards.
According to a new study from CreditCards.com, nearly half (47%) of adults have at least one unused gift card, voucher or store credit in their possession — it's a considerable amount of forgotten cash just sitting at their disposal, too, with an average of $175 in unredeemed gift cards per person.
If you haven't yet used a gift card the way it was originally intended to be spent, its next best use is trading it in for some cash. At the very least, it can provide a small windfall of cash you weren't expecting and help cover the cost of everyday essentials while their prices are still high.
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Maximizing your forgotten gift card cash
Before you cash in a gift card, be sure to check the balance. You can do this by going through websites such as GiftCardMall.com or GiftCardGranny.com, or by simply calling the phone number on the back of your gift card.
Once you know the balance, you're ready to cash it in. Note that gift card resale websites will typically take a percentage of the card's original value, while resale values generally range from below 70% to over 90%.
Some of the most popular online card exchange marketplaces for cashing in unredeemed gift cards include the following:
- CardCash.com
- CardSell (a mobile app)
- ClipKard.com
- GiftCash.com
- Prepaid2Cash (a mobile app)
- Raise.com
You may also want to do a little homework beforehand to see how valuable your gift card is. For example, WalletHub found that the average resale value for a $100 gift card was highest among Visa, American Express and MasterCard gift cards — the highest resale value for retail gift cards included American Airlines, Costco, eBay, the Apple Store and Ikea.
If you just have a small remaining balance left over, keep in mind that states also have certain gift card laws that allow gift card holders with an outstanding balance under a certain amount — say, for example, $10 — to just redeem them for cash with the actual retailer.
Don't forget about maximizing cash-back credit cards
While you're likely relying on the credit card that's sitting in your wallet more than a long-forgotten gift card, it's worth noting that these can also help to stretch your dollars further, especially during times of high inflation.
A cash-back credit card also allows you to earn a portion of your spending back. A flat-rate card such as the Citi Double Cash® Card offers cardholders 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, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
What makes the Citi Double Cash® Card special is that it sits near the top of its class in several categories. It is an excellent option if you want flat-rate rewards, a balance transfer intro-APR or no annual fee.
- Balance transfers get a long intro APR
- Generous flat-rate cash-back rewards structure
- Earns transferable rewards
- No annual fee
- It has a foreign transaction fee
- Intro APR only applies to balance transfer
- Points transfer ratios are reduced compared to premium cards
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- 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.
- 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, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
- Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 18.24% - 28.49%, based on your creditworthiness.
- Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
Balance transfer fee
There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening.
Foreign transaction fee
3%
A category-based spending card such as the Chase Freedom Unlimited® (see rates and fees) offers cardholders 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.
The Chase Freedom Unlimited® is a no-annual-fee card that earns generous cash-back on everyday purchases and a lucrative welcome bonus. Plus, if you pair it with a premium Chase credit card that allows point transfers, you can convert your cash back into flexible travel rewards.
- Users get a high rewards rate and strong welcome bonus
- Purchases and balance transfers receive an intro APR
- No annual fee
- Has a foreign transaction fee
- Few rewarding ongoing benefits
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
- 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.
- No minimum to redeem for cash back. You can use points to redeem for cash through an account statement credit or an electronic deposit into an eligible Chase account located in the United States!
- Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 18.24% - 27.74%.
- No annual fee – You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
- Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
- Member FDIC
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, in the first 60 days. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3% of each transaction in U.S. dollars
To make sure you get the most out of your cash-back card, redeem your cash back as a statement credit to your account balance, which will help to offset your bill in the process. You can also opt to transfer the cash back to a linked bank account or request a paper check. That's essentially another windfall of cash that you earned — one that can help you get by in today's high inflationary environment.
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