The worst gift cards to have

by Bob on July 24, 2008

(Advertising policy | Report an inappropriate ad)

What happens to my gift card if the retailer goes bankrupt?

You might have heard about the recent bankruptcies of Bombay, Sharper Image, and Linens-N-Things. Well, I hope you don’t have a gift card for one of them still sitting in your drawer. According to the recent issue of Money Magizine, you are not likely to get anything from them. It is possible that you could get a fraction of what it was worth, but not very likely.

They suggest that you start spending if you have a gift card for…

Blockbuster
Eddie Bauer
Express
Petco
Toys R Us

Each one of these companies recently had their credit rating drop below investment grade. That is not necessarily an indication that they will go bankrupt, but definitely a cause for concern.

Personally, I often spend gift cards as soon as I get them, but they say that half of all Americans have an unused gift card laying around somewhere. It’s free money. Get spending!!

But I hate that store, I will never use it!

Can you imagine Paris Hilton trying to use a Home Depot gift card?

I can’t either. If you are in a similar bind with some of your unused gift cards, check out these sites. Each one allows you to sell the giftcard outright (at a discount) or trade it with other members.

Article by Bob

Bob enjoys dark chocolate, paying off debt, giving, Foosball, loose-leaf tea, helping people succeed, learning, anything God created, playing guitar, doing things the "long" way, Philippians, excellence, Chick-Fil-A, and making his wife smile. He started ChristianPF in 2007 and has been having a blast ever since. Find him on Facebook & Twitter.

(Report inappropriate ad)

{ 9 comments… read them below or add one }

Tim Richmond July 24, 2008 at 2:14 pm: Don’t forget http://www.giftcardbuyback.com. They seem to offer better prices for outright purchase of those unwanted cards. Way better than Swap-A-Gift.
zgreenwell July 24, 2008 at 2:55 pm: I love toys R us. If you’re not wanting to use those I’d be willing to make an offer.
bob July 24, 2008 at 3:10 pm: @Tim
thanks for sharing, I have never tried them, but if I get a bad one in the future I will give them a try…
Ron@TheWisdomJournal July 24, 2008 at 5:17 pm: If you don’t like the store, consider using the card to buy a gift for a friend who does.
Cory July 24, 2008 at 8:56 pm: I have often thought about how rich those companies get off of unspent balances on those cards. It’s like Richard Pryor in the Superman movie where he gleans 3 cents off of everyone’s paycheck in his company. Those little 50 cent balances must add up to a lot. I can see why Capitol One and VISA got in the business of gift cards.

One more reason for using cash. You get to keep the change!
bob July 25, 2008 at 6:53 am: @Ron
Good point…

@Cory
yep, I wonder how many millions of dollars those balances add up to each year…
Austin Chu July 25, 2008 at 3:56 pm: I work for a company that manages and tracks gift cards, and I’ve been following gift card related issues on our blog. You’re exactly right, when companies file for BK, they may take their gift card programs with them. However, pay attention to the credit card gift cards. They have outrageous fees and they expire.
painting gift November 20, 2008 at 10:45 pm: yes giftcardbuyback is also good one
nick October 28, 2009 at 6:58 pm: Why use gift cards at all? You have to drive, wait in line and pay a fee to give someone what basically boils down to is cash. And it’s cash they can only spend at one place unless it’s a Visa, MC or Amex card. I stopped asking for and giving gift cards years ago after I found expired $50 and $25 cards from the Christmas before. A fresh bright new $20 or $50 bill makes a fantastic gift for kids and adults and I’ve never seen a disappointed face on a recipient.