 By ASAP Credit Card - Copyright © 2008
With
today's high gas prices and our Nation's dependency on foreign oil, it's no
wonder gas rebate credit cards have become increasingly popular.
If you can pay off your balance in full each month, gasoline rebate cards are
a great way to earn extra rewards from your gas purchases and may even help lower
your overall gasoline costs. Here's how gasoline rebates work:
How gas rebate cards work:
Unlike 'standard' cash
rebate programs which only distribute rewards quarterly or yearly, most gasoline rebates are applied directly to your credit card statement
each month. In most cases, there are no forms to fill out, phone numbers to call, or requests
to be made to receive benefits - making gas rebates a breeze.
The
average savings on a gas rebate credit card is 3%. But you can earn even more if you
shop around and take advantage of special bonus rewards. For example, the Chase
BP Visa® Rewards Card offers double rewards for the first 2 months. That's
10% in rebates on BP purchases! Plus, most gasoline rebate cards allow you to earn rewards from everyday purchases as well - normally 1%.
Here's
an example:
The best way to determine how much
you can save with a gas rebate credit card is to do the math. Let's take a look
an example of how much you can earn over a 1 year period:
Let's assume you apply for a gasoline rebate credit
card which pays 1% in rebates on regular purchases, and 3% at gas stations and
other select locations:
Category |
Amount You Charge |
Percent You Earn |
Rebates You Earn |
Regular Charges |
$ 4,000 |
1% |
$ 40 |
Gas Purchases |
$
5,000 |
3% |
$ 150 |
Other Locations |
$ 1,000 |
3% |
$ 30 |
TOTAL |
$ 10,000 |
|
$ 220.00 |
If
you spent a total of $10,000 over 1 year ($4000 x 1% and $6000 x 3%), you would
receive a total of $220.00 in savings in 1 year (assuming all charges we made
at the beginning of the 12 month period).
*
The Chase PerfectCard
Mastercard is a perfect example of this type of offer.
Types
of gasoline credit cards:
Cards Offered by Gas
Stations:
Sometimes gas companies will
team with a major credit card company to offer rebates on gas
and other purchases
made at their stores. These cards will carry the logo of the credit card company
(i.e. Mastercard, Visa, etc.), as well as that of the gas station. This type of
card is particularly useful if you frequent a particular brand of gas stations.
But the rebates might only
be applied to purchases made at those specific
stores.
NOTE: If your rebates are limited
to particular gas stations, you might end up paying higher gas prices. This could
negate the benefit of using the card altogether!
Cards
Offered by Credit Card Companies:
This type of gas rebate card is much
more flexible. These cards not only offer rebates on your gas purchases, but rebates
anywhere you shop. Plus, you're not limited to just one brand of gas station! The Discover
Gas Card and Chase
Perfect Card are great examples. They're extremely flexible and allow you
to earn 3%-5% in rebates on gas-- plus, 1% on all other purchases.
Other
facts to consider:
The average interest rate on
gas rebate cards is 15%-- a bit higher than your typical credit card. This means
if you carry a balance from month-to-month, you'd probably be better off looking
for a lower APR card instead. Also, be sure to read the fine print. Some rebates
can only be earned through pay-at-the-pump purchases. And there's often a limit
to the rebate amount-- typically $300 per year. Find a rebate card that doesn't
limit your rewards.
* See a complete list
of gasoline rebate credit cards >
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