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Is a Prepaid Gift Card a Credit Card?

by Isabella Craig on 2013/11/30

Is a Prepaid Gift Card a Credit Card?

Students and people with not so good credit like to use gift cards because they prevent the cardholder from spending beyond what he or she can, but is a prepaid gift card a credit card?

Many people are interested in a card that lets them buy online, prevents them from overspending and does not affect their credit rating.

A prepaid gift card is a type of stored value card that may be used to buy online or to make purchases with a certain store, but is not a credit card. Hence, it will neither affect your score positively or negatively.

Get the Best Prepaid Credit Cards to Use As Gifts

Prepaid gift cards may be used anywhere, as long as the card issuer or logo is accepted in an establishment. Furthermore, some prepaid gift cards may be reloaded to be used a number of times. They may be used to buy online, but it is always advisable to review an online store’s policy for prepaid gift cards, along with fees associated with their use.

Prepaid gift cards, however may be reloaded only up to a small limit. Unlike other types of cards such as secured credit cards or traditional credit cards, you may only be allowed to load it up to $200.

So if you are looking to use them for travel, make sure to bring more than one. In addition, some immigration offices may have already restricted people from carrying multiple gift cards as they have been used to transfer illegal money in the past to different countries. Always inquire before bringing some for travel.

If someone asks, ‘Is a prepaid gift card a credit card,’ and you know the right answer, you should immediately dispel misconceptions that they are without restrictions and that you can use them without paying absolutely no fees.

Like any other stored value cards, they are subject to the issuer’s limitations and that you may also be subject to some charges that may not have been discussed outright when you bought the card.

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