Earn Rebates w/ Gasoline Credit Cards

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 Visaź 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 >

Related Articles:

• Choose the best reward cards / programs
• How to take advantage of credit card rewards
• Benefits of using cash back credit cards
• Cash back programs vs. reward points
• Common pitfalls of using reward credit cards
   

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