Understanding Gas Reward Credit Cards

As the price of gas rises by the day, many people are looking for new ways to save money on this never-ending expense. Gas reward credit cards are one of the viable ways one can save money on their travel expenses, and there are certainly many to choose from.

How Gas Reward Cards Work

Gas reward cards, also known as gas rebate cards give the cardholder back a certain percentage of the money spent on gas each month with the card. The rewards program is similar to that of a cash back rewards card, except instead of receiving an annual rewards check via mail. The balance is usually credited to the card on a monthly basis.

The amount received each month varies depending upon the card issuer and the card itself. Typically the rebate percentage ranges anywhere from 2%-4%, but many cards start with a higher rebate rate such as 5%-6% before dropping to a lower rate.

Where to Find Gas reward Cards

A lot of the gas rewards cards offered are issued by oil and gas companies themselves, and these cards can only be used at specific locations. This kind of card is perfect for someone that frequently visits a particular gas station near their house, however it may not be suitable for someone that does a lot of traveling and cannot predict where they will be buying gas.

For these kinds of consumers a general credit card that offers gas rewards would be the best option. There are many regular credit cards that also offer gas rewards at the end of each month. In order to pick the right gas reward card, it might be best to consider the following factors.

Important Factors

The first thing that needs to be considered is the rebate percentage. For those with a higher credit score the rebate percentage will invariably be higher. In general, any card that offers a 3% or higher rebate rate is ideal. Another thing to consider is the type of gas rewards card. As mentioned, there are exclusive gas rewards cards, and then there are cards that can be used at almost any gas station. Obviously the non-exclusive cards would be ideal.

Finally, consider the interest rate of the card as well. It is important to note that many exclusive gas reward cards have interest rates ranging from 12%-24%. So if one were to choose an exclusive card it would be very important to pay the balance in full to prevent accumulative debt.