Is it possible to use my redeemed gift code that I have saved into my user credit to buy...

When it says that, it means you don't have enough funds to pay for the full amount with the money in your account. So it's already trying to use the funds in your account, but it's looking for another way to pay for the remaining amount due. If you only want to use account funds, you'd need enough to pay the full amount.

On MS Store you can use Credit Cards and Cash Gift Cards.

Sometimes i use a 50,- EUR Card, when i buy something i can choose if i want to pay with this (you must first redeem the code) or want to use my CC.

Hi kenedgely,

In order to purchase a gift card for someone who lives in another region you have to buy it from a another retailer that sells that region code using your credit card. You can't gift it over Xbox. I just brought a gift card for my cousin who lives in Canada
from online and they had no problem redeeming the code.

Once a code has been redeemed you cannot cancel it.

Your options are (if you redeemed a gift card) use those credits to buy a game you want and send it as a gift to the desired user.

If is an Xbox game pass ultimate / gold subscription make your home console with that account, so other users in that household can use the membership.

If is either a game or a DLC, you'll need to have that account logged in order to use the content with other account.

And if it was a consumable, you will not be able to transfer to another account, unless the game has that option.

When I purchased the game through microsoft.com, i was never give the option of checking out, or viewing my cart. The purchase happened in a modal window without an option to enter a promo code. Is it still possible to use my gift code on the purchase and
have my credit card credited for the amount charged?