More and more people are turning to credit cards offering rebates and other rewards on gas purchases to ease the pinch at the pump, particularly in these days of high gas prices. With cash back rebates as high as 5%, gas credit cards allows you to save a considerable amount on gas, particularly if you have a long commute or otherwise run up a lot of miles in your car.
Many rewards cards offer higher rebates or rewards on certain purchases, such as gas, and grocery and drug store purchases. Here, the type of reward and the percentage earnings vary considerably from card to card. Some cards, like the Discover® Open RoadSM Card, let you earn 5% cash back up to a certain limit on gas purchases and auto maintenance expenses. With others, you get awarded in points or miles, redeemable for airline tickets, merchandise, and other types of rewards.
When you look for a gas rebate card, there are a couple of things to keep in mind. Many cards come with attractive introductory offers, like bonus points or miles when you sign up, or double cash back earnings during the first months you hold the card. In most cases, however, you are best off getting the card that offers the best long-term value in terms of highest percentage rebate or highest mileage or points rewards.
Before you apply, also check to see how your earnings will be redeemed. In most cases, you have to request your rebate or cash in your miles or points, so it’s important to know up front how to do that. For some cards your points or miles will expire, sometimes in as little as six months, if you don’t convert them to rewards within a given period of time. In short, be sure to familiarize yourself with the Terms and Conditions of the card before you apply.
Lastly, as with all rewards or cash back credit cards, your savings can quickly be undermined by interest charges if you carry a balance. So be sure to pay off the charges to your gas rebate credit card in full every month. When you need to carry a balance, use a low interest credit card or a card with a 0% APR balance transfer offer.
See the list of tips on other ways to Save Money on Gas.
