Credit Card Watch

Gas Credit Cards For Tough Economic Times

Many people don’t have these but in the absence of another rewards card, a gas rebates credit card may represent hundreds of dollars in annual savings for the average consumer.

Americans still have not recovered from the summer of 2008. What seemed like an overnight phenomenon, gas prices reached $4 per gallon and even higher in some areas of the country. This forced consumers, businesses, and federal, state, and local governments to rethink their energy needs.

Consumers became much more conscious of their gasoline consumption and because of this, they considered trading in their gas guzzling SUVs for more efficient hybrid vehicles and in extreme cases, Americans quit their jobs where commuting was eating away at the money they were earning.

For most, quitting their job or finding a workplace closer to home is not a practical option but there may be ways to save money on gas without resigning or purchasing a smaller car. First, consider carpooling or driving less when possible but an even easier way is to apply for a gas rebates credit card.

Most gas stations have their version of a credit card that may pay rebates or rewards but often cards from the general credit card companies pay much better. Often, rewards are between 2% and 5% of all gas purchases and 1% on all other purchases. Depending on the card issuer, sometimes rebates are credited to the card balance and other times a rebate check is sent.

Depending on current gas prices, a 5% rebate could represent a 20 cent discount on a gallon of gas. For the commuter who drives sometimes hundreds of miles per week, even a 10% discount can represent large amounts of annual savings.

With all things in business, a risk/reward analysis must be done. Do the goods outweigh the bads? First, gas rebates credit cards normally have a higher interest rate than other cards so thoughtful research on all offers is important. Next, like all rewards credit cards, the consumer doesn’t gain any financial benefit unless they pay the full balance at the end of month. Finance charges cancel out rewards or rebates that are earned.

Watch for annual fees. For the family who doesn’t drive long distances or has a highly fuel efficient vehicle, annual fees can take a large percentage of the rewards earned but remember that just because a card has an annual fee doesn’t mean that it should not be considered. Last, watch for annual limits. Some cards will only pay rebates on a certain amount gas purchases per month or year. One of the ways to get around this is to enroll in more than one rewards card.

In a nation that is much more energy conscious than in the past, one can find no absence of advice, tips, and tricks for cutting energy costs. Many of them, however, require sometimes drastic lifestyle changes. Gas rebates credit cards require no lifestyle changes and offer sometimes significant annual savings making driving much less financially painful but be careful. Sometimes general rewards cards offer the same or better rewards points so careful research has to be done.

Start saving money on your gas expenses with a gas credit card today! If you’d rather earn cash with all credit card purchases, a cash back credit card may be more suitable for you.