xbox gold code don't work

What you have done is you've purchased currency for XBL gold and the reason it is not working is because you entered a gift code not a gold code. You need to purchase XBL gold in the store or online etc... Once you've entered a code, it cannot be used again.
So head into 'marketplace' or the window that pops up and purchase gold from there. (Don't worry you haven't wasted money or have been scammed, just you didn't purchase a gold code you purchased currency to purchase gold on the Xbox).

I don't know if anyone else already posted the solution to this, but a friend had the same issue with the same error. The problem was, he was trying to redeem a code over a trial gold. Live Gold and Gold Trial, doesn't mix up, that's why the solution is
to let the gold subsciption end and then redeem the code. So if you have a Live Gold and try to redeem a Trial code (like the one included with the xbox) or the other way around, it won't work.

But I lost my code and I have that problem. My gold scorpion don't working!!!

Hey Jaime Chingon 4! Is there another account on the console that may have been used to redeem the code? Double check and post back. Thanks!

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I don't know (don't remember) if prepaid credit can e used to buy Xbox Live Gold or Xbox Game Pass Ultimate subscriptions, but, you can work around this issue buying a prepaid for code for one of this subscription to gift with the console.