Credit Facts

If you spend a lot of money on gasoline, getting a gas rebate credit card can save you money on gas purchases. A gas rebate credit card used responsibly could save hundreds on dollars off your gas bill each year. Gas prices are soaring and are becoming a major economic factor. The credit card companies are aware of the costly necessity of gasoline. 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.

Before applying for a gas rebate credit card, read the terms and conditions carefully. Most gas credit cards claim high cash back percentages, but there is usually a catch. Buyer beware of the following gas rebate credit cards that offer:

Cash rebates limited to only one gas station company

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

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

A tier structure with varying cash back percentages depending on actual spending

Some credit card companies are very careful with their marketing wording. A cash back percentage is usually up to 5 percent cash back. Once they say, up to, you know you won’t get that high cash back all the time on your gas purchases. So know what you are applying for in a gas rebate credit card to prevent disappointment when the bill comes.

As with any credit card, if you only make the minimum monthly payment and keep a balance, you will pay interest charges with a gas rebate credit card. Over time these interest charges could cost a lot more than any cash or gas rebates you earn. Try to only use your gas rebate 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 gas rebate credit card to earn more rewards. 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 in the mail. Then the interest charges will add up, should you use your gas rebate credit card in this manner. This is how gas rebate credit card companies can afford to offer cash back on gasoline purchases. Ideally you should keep track of your gas rebate credit card spending and keep that much cash aside and consider it as money already spent.

If you are trying to save money with a gas rebate credit card, choose your credit card rewards carefully. You could earn airline rewards on your gasoline purchases, but they could cost you 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 probably wouldn’t normally buy. To really save money with gas credit cards, apply for a gas credit card that offers cash rebates as either checks or a statement credit. Always pay off your gas rebate credit card each month and avoid interest charges. Lastly, compare gas rebate credit card offers carefully and always read the fine print.