Gift credit cards are prepaid credit cards, that are often given as gifts to family members and friends for special occasions, such as birthdays or at Christmas time.
They are also often used by employers to reward their employees for their hard work and exceptional achievements.
Gift credit cards are paid in advance for a fixed amount, therefore, there is no monthly bill and no debt involved.
Some cards can be refilled after they were used, while others have a fixed value and cannot.
Gift credit cards can be found in many different places.
Some can be ordered online.
Others can be purchased from banks, variety stores or check-cashing institutions.
They vary in denomination; the most popular ones are $25, $50 and $100.
They can then be used like a regular credit card at merchants that accept the card, as well as for online or telephone orders.
Take note, however, that certain merchants, such as hotels or car rental agencies may not accept a prepaid credit card as a valid method of payment.
Also, as some cards have an expiry date, after which they cannot be used anymore, make sure that you use the balance on the card before this date.
In most cases, any remaining funds that are left on the card will be forfeited after it has expired.
Also, take note of the card's number and store it in a separate place away from the card.
This will be of great usefulness if you need to have the card replaced in the event that it was lost or got stolen.