|
|
Are the Gas Cards Really Worth It?
With gas prices climbing higher every day, drivers are always on the lookout for saving a few dollars at the pump. One way to save that is rising in popularity is the gas rebate or gas cash back credit card. As with any other rewards credit card, gas credit cards offer rewards to consumers in the form of gift cards, discount certificates or checks (for the card owner's total points, converted into dollars). You can apply for a gas credit card the same way that you would apply for a regular credit card, but you can reap extra benefits, especially if you fill up your tank often.
How Do Gas Rebate Credit Cards Work?
Every time you use your gas rebate credit card for filling up your gas or buying groceries, you receive a three to five percent rebate on your purchases. The best cards will also offer you a one percent rebate on all other purchases. You will receive your rebate either as a credit on your statement or via a check in the mail.
There are two different types of gas rebate credit cards. The first type is offered by a specific gas station or company, and the other is offered by a credit card company.
Cards Offered By a Gas Station or Company
Many gas stations offer their own gas rewards credit cards, all of which will carry a standard MasterCard, Visa, etc., logo and can be used anywhere. However, you will only receive a rebate on gas purchased from that particular station or company. These cards might be handy if you have a favorite gas station, but they are also limiting. If, for example, the gas prices are lower at the station down the street, you might feel constricted to paying more for gas just to use your gas rewards card.
Card Offered by Credit Card Company
The other option for gas rebate credit cards are those offered by major credit card companies, which are much more flexible. They offer rebates on gas at any gas station and often at grocery stores as well. These cards are also more likely to offer other standard credit card perks, like zero percent interest for the first year.
How much can I save?
Depending on the card offer, you can save up to $.20 per gallon when you use the card to buy gas. Some credit card companies will even award increased or doubled rebates for a limited time (usually for two or three months after you activate the card). During that period anybody who uses their gas card will receive up-to $.30 per gallon purchased. Other card companies offer instant rewards for signing up for their gas credit card, like a $50 certificate or a free oil change.
Are The Cards Really Worth It?
While gas rebate credit cards are extremely tempting with gas prices ticking up toward $5, there are a few things to consider before signing up for one of them. It is important to read the fine print on the credit card contract to fully understand what the card will offer you in the long run.
While you consider your options, here are a few things to remember about gas rebate credit cards:
- Introductory offers only last so long--Many card companies offer very high rebates for only a short length of time--around ninety days. After that period is up, the rebate can drop considerably.
- All gas stations are not created equal--While gas rebate credit cards offered by major credit card companies may seem flexible, even they have restrictions on where the rebate will count. Buying gas at a wholesale club is often much cheaper than a regular gas station, but it may not receive a full rebate.
- Interest rates are extremely high--Because gas cards are rewards cards, they have higher interest rates than most credit cards, often as much as twenty percent. If you do not pay off your bill in full every month, gas cards may end up costing more than they save for you.
- Rebates may not be forthcoming--Some card issuers do not automatically refund you the rebate money and instead require that you request the rebate. The unwanted hassle is worsened by the fact that your rebate may disappear altogether if you do not act within a certain time frame.
- Rebates may be capped--Many gas credit cards have a limit to the amount of money you can receive in the form of a rebate, usually between $300-$600.
Before signing up for a card, make sure to carefully read the card's terms and conditions. Gas rebate credit cards can be a convenient and economical way to fill up your car, but make sure you know the difference between the offer featured in large print, and what is hidden away in the fine print.
About the Author:
Paul Basco Provides Expert opinions and reviews to help you Compare and Apply for a Credit Card Offers online. At GettintingaCreditCard.com, we offer credit cards for bad credit, low apr credit cards, instant approval credit cards and much more.
This article may be reprinted in accordance with the GettingaCreditCard.com Reprint Requirements
Information in these articles is brought to you by www.GettingACreditCard.com. Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles.
|
.gif)
.gif)
