Misleading Gas Credit Card Applications

Before applying for any credit card, read the terms and conditions. Most gas credit cards claim high cash back percentages, but there is usually a catch. Here are some examples:

• cash rebates limited to one gas station company

• high cash rebates only during an introductory period of usually 6 to 12 months

• a monthly or annual limit on how much cash back you can earn

• a tier structure with varying cash back percentages depending on spending

The credit card companies are very careful with their marketing wording. A cash back percentage is usually quoted as ‘up to 5% cash back’. Once they say ‘up to’, you know you won’t get that high cash back all the time. So know what you are applying for to prevent disappointment.

Keeping a Balance Will Blow Your Cash Rebates

With any credit card, if you only make the minimum payment and keep a balance, you will pay interest charges. Over time these interest charges could cost a lot more than any cash rebates you earn. Try to only use your credit card as much as you can afford to pay off next month. This can be difficult to adjust to for some people. Suddenly they are paying for everything with their credit card to earn more cash back. Meanwhile it seems as if their bank account is unaffected. This could lead to impulsive spending. Before they know it, their bank account is empty and a big credit card bill shows up. Then the interest charges add up. This is how credit card companies can afford to offer cash back. Ideally you should keep track of your credit card spending and keep that much cash aside as money already spent.

Gas Rebate Credit Cards Offering Rewards Other Than Cash Back

If you are trying to save money with a gas credit card, choose your credit card rewards carefully. You could earn airline rewards on your gasoline purchases, but they cost more money in the end. Airline rewards would likely only cover a portion of you or your family’s airline tickets. Then factor in vacation expenses and lost wages. Other gas station reward credit cards offer gift certificates. Again it usually only covers part of the purchase and it is something you wouldn’t normally buy. To really save with gas credit cards, apply for a gas credit card that offers cash rebates as checks or statement credit.

Why Are Gas Rebate Credit Cards Still So Popular?

Gas prices are a major economic factor. We hear about gas price fluctuation in the news. The credit card companies are aware of this concern. Nearly every gas station company has its own credit card and many of them are heavily marketed. Despite some reward limitations, many of these gas rebate credit cards are very good deals.

If you spend a lot of money on gasoline, a gas rebate credit card can get you the cheapest gas prices. A gas rebate credit card used responsibly could save hundreds on dollars off your gas bill each year. Ensure you are familiar with your credit card rewards program details though. Pay off your credit card each month and avoid interest charges. Compare credit card offers carefully and read the fine print.

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Fortunately, leading credit card companies are now capitalizing on this problem. They have partnered with gas companies with one goal in mind: to create the best gas rebate credit card.

How It Works
The best rebate credit cards work in a such a way that cardholders receive a certain percentage of the gas purchases they charge to their credit card. This mechanism follows the same principle as most cash back rebate programs. However, while most cash back cards send rebate checks once a year, the best gas rebate credit cards apply credit each month, allowing consumers better access to their savings.

Station-Specific Gas Rebate Credit Cards
Most of the best gas rebate credit cards have affiliate gas brands. If you frequent a specific gas station, a station-specific card might be the best gas rebate credit card for you. You can earn rebates of up to 3% to 5% when you use this card at certain gas stations. These rebate rates are often only for gas purchases. Some stations, however, allow you to earn the same rates with any purchase. Other purchases from selected restaurants, supermarkets, drugstores, and retailers may earn you rebates of 1%.

A good station-specific card is Chase BP Visa Rewards Card. This is one of the best gas rebate credit cards because it pays a 5% rebate on all purchases made at BP Amaco stations. Dining and travel purchases earn 2%.

Any Station Gas Rebate Credit Cards
If you don’t have a specific gas brand in mind, the best gas rebate credit card for you would be a credit card that allows you to earn rebates in any station anytime! Many financial institutions are now offering this type of rebate card. The Chase PerfectCard Mastercard is a good example. This card offers a 3% cash rebate on gas purchases. An even better option is the Discover Gas Card. It pays 5% rebates for the first $1,200 in gas purchases every year. Rebates are offered in check or gift card in $20 increments.

Cash Back Credit Cards as Gas Rebate Credit Cards
Most cash back credit cards make the best gas rebate credit cards. This is because most cash back cards pay rebates of 2% to 5% on purchases made from supermarkets, drugstores, and gas stations. American Express’ Blue Cash pays rebates of up to 5%, but only after you spend $6,500 annually. The Citi Dividend Platinum Select Card pays 2% rebates on gas purchases.

Some of the best gas rebate credit cards don’t charge an annual fee. Interest rates are known to be higher, however. Each gas rebate card has its own limitations. For example, even if the Blue Cash and the Discover Gas Card pay 5% in rebates, there are still conditions that need to be met.

In choosing rebate cards, take the time to compare and consider your options. With so many reward cards in the market today, don’t settle for less than the best gas rebate credit.

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Merchants (the gas stations) must pay a small percentage of your purchase price to the credit card issuers in what is called transaction fees. These fees typically make up anywhere from 1% to 5% of your purchase. Have you ever felt it’s not fair that the credit card companies are making extra money off you this way? Well the good news is you can get that money back, in the form of cash in your pocket, that is if you know the right credit cards to use.

Right now there are a couple major gas reward credit cards on the market which offer you at least 5% cashback on your gas purchases. These cards are free, no annual fee, so if you already use a credit card to pay for your gas, it may be smart to switch to one of these cards instead. There are other cards on the market which also offer your 2% or 3% cash back on gas, but we’ll focus here on telling you about the cards which pay the highest rebate of 5%.

You can read almost any American Express Simply Cash review to see that this card is a no brainer if you qualify for it. What makes this card unique is that in addition to the high rebate if offers on gas, it also gives you 5% cash back on office supplies as well as wireless services. That means purchases at places like Staples and Office Depot, as well as your cell phone bill or even a cell phone purchase, qualify for this rebate amount. This is a business card so you can either apply using a corporation or LLC, or by simply using your name and social security
number in the form of what is called a sole proprietorship.

One of the other great cards on the market is the Discover Open Road credit card. This card not only offers 5% rebate on gas, but also auto maintenance – making it the perfect companion for all auto related purchases. This card also has no annual fee.

Obviously gas rebate credit cards are far from a solution to outrageous gas prices. However they are a tool, when used properly by the consumer, that can offer a small free discount on gas purchases.

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