Study Names 3 'Best' Holiday Gift Cards to Receive
The holiday season is here, and gift shopping is in full swing. Many Americans have already spent the last few weeks purchasing presents, while others will use the next 20-plus days to accumulate goodies for their friends and family.
Material gifts will always be popular, but don't sleep on gift cards. They're simple and effective, and afford the receiver the chance to spend the money how he or she wishes.
As for which gift cards to spend on, a recent WalletHub study offered its findings. The personal finance company examined 50 different gift cards for any occasion--holiday, birthday, graduation, etc.--and graded them across five categories on a 100-point scale.
- Popularity of the cards (30 points)
- How much of a discount you can buy them for (30 points)
- How much you can sell them for (20 points)
- How much people like the retailer (15 points)
- Shipping fees (5 points)
Again, these gift cards work for all relevant occasions, but since its the holidays, here are the top three:
Sephora (65 points)
The personal care and beauty brand comes in at No. 1. Sephora was fourth in popularity, trailing only Visa, Amazon and Target, and it had the eighth-best retailer rating and a solid average resell value of $82.40.
Additionally, Sephora doesn't issue any shipping or purchase fees and has an average buyer discount of 2.22%.
Target and Starbucks (60 points)
The major retailer and coffee giant actually tied for second-place overall, five points behind Sephora.
Target ranks third in popularity, with Starbucks checking in at No. 6. Starbucks' retailer rating of 2.82 is fifth-best of the bunch and the Seattle-based corporation offers a healthy average buyer discount (7%).
Target also boasts a strong retailer rating (2.37), 10th-best on the list, and a robust resell value of $83.00.
WalletHub's 12 best gift card tips
- Look for a discount
- Avoid Card-Network Gift Cards
- Don’t Confuse Gift Cards & Prepaid Cards
- Watch Out for Loyalty Cards With Different Rules
- Resale is Always an Option
- When in Doubt, Just Give Cash
- Tap Into Unredeemed Value
- Buy Gift Cards with Rewards
- E-Gift Cards are Great in a Time Crunch
- Avoid Using Gift Cards as an Excuse to Overspend
- Check the Card Before Leaving the Store
- Be Careful of Inactivity Fees
The full results of the study can be found here.