Gas Rebate Credit Cards
By FederatedCreditCards.Com
Copyright © 2008 |
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Sticker shock at the pump is responsible for a stampede of sorts, people running to obtain gas rebate credit cards. The average rebate is 5% on all gas purchases, which can add up to huge savings as gas prices skyrocket globally.
There are really two types of cards that give rebates on gas purchases. The first is a general cash back credit card that provides 1% to 2% cash back on all purchases including gasoline. A better choice is credit card that is affiliated with the oil companies such as Shell or BP. They team-up with Visa, Mastercard, and other issuers to offer cards that give up to 5% rebates, many with no annual fees. Rebates are usually issued at the end of each month providing the best benefit for consumers.
A word of caution: Some credit cards make you request your rebate. And if you don't act within a designated period of time your rebate disappears. A better choice is a credit card that automatically applies your rebate to reduce your balance each month. Always read the fine print and understand how a card operates before applying.
When shopping for a gas card its best to look past introductory rates that will soon disappear. Look closely at on-going fees, limits, interest rate, and that all important rebate percentage of gas purchases. Like other rewards cards, gas cards are best suited for people who pay off the monthly balance. Otherwise credit card interest will cost you more than you save in gas rebates.
A great strategy is to have a high rebate gas card for only your gas purchases, and then another cash back card for grocery store, department store, and restaurant purchases. This will allow you to get the highest rebates and maximum reward for all of your common purchases. If you are able to pay off your balances each month, then you will maximize your rewards and lower your cost of living.
Lastly, credit card offers do change. Better offers come available. Also, credit card issuers can reduce the benefits of your current card following notification by mail. If you're not getting the best rewards you may consider closing your current card for one that offers better rewards, or has lower interest, or no fees.
