Gas Credit Cards ? Are They For Me?

Posted by Nick Niesen on October 29th, 2010

Everybody in today?s age drives a car and if you like to save money, you might want to look to other alternative ways to save on gasoline. One of the greatest ways to save on gas that most people pass up is gas credit cards. A lot of companies such as VISA and MasterCard offer gas credit cards that solely focus on you, the consumer on saving money at the pump.

How do these credit cards work you might ask? You will find that gas stations such as Speedway, BP, and others will issue out credit cards for the consumer that are tied in with a bigger credit card company such as VISA or MasterCard. You?ll find that most of them you can use anywhere these major cards are accepted. This ensures you that you will be able to use it at many other places, not just the gas station.

A gas credit card concept is actually quite simple. A credit card company will usually have a bonus rate for the first few months as an intro period. This rate can be anywhere from 1% to 10%. This can add up quickly if you pump up a lot. One thing you should look out for though is a cap. Some cards only allow you to fill up with so much gas per month. Some cards also have other restrictions that may cause you to not save the money you want to. It?s important that you review these restrictions before applying.

Are the rebates usually good? The rebates generally range anywhere from 1% to 10% like mentioned above. If you really think about it, you would have never been saving this money before you applied for a card. Even 1% adds up over the long run. You will find that credit cards that are focused on one gas station will offer the best rate. A majority of the other gas cards will allow you to not only save money on gas but other products such as grocery shopping and more.

Now that I know how the rebates work, how are they paid out? Every credit card company differs. Once again you should refer to the restrictions to get a good feel on how they work. A majority of the time, you will see a credit on your balance when you receive your bill in the mail. Over the year, you will be able to see exactly how much you saved over the long run. If your rebate runs in the 4% area, every $100 you spend on gas means you?re saving $4! It doesn?t sound like a whole lot but it?s better than nothing.

If you don?t want a credit card that focuses solely on gasoline, you can still find a credit card that fits your needs. A lot of the credit cards that do offer gas rebates offer other rebates like mentioned above. So not only can you save on gas, you?ll be able to save on clothing, groceries, and more. If you drive everyday and you?re paying full price, stop and apply for a credit card today!