With gas prices on the rise and no sign of slowing anytime soon, many people are looking for ways to cut down on the amount of money they spend on gas each month. Gas rebate credit cards are becoming increasingly popular and offer a good option for those who are looking to save at the pump.
What are gas rebate credit cards?
Gas rebate cards are a form of credit card that offers you rewards for your gasoline purchases. Typically, this is in the form of cash back each month. The amount you get depends on the amount of money you spend on gas each month; for example, one card may offer 3% cash back on all gas purchases and 1% cash back on all other purchases.
Gas rebate credit cards tend to offer travel-related perks as well, such as discounts on hotel accommodations and rental cars.
Are gas rebate credit cards right for you?
There are many great credit card rewards available that offer numerous perks, from cash to gift cards to airline miles, so do a little research before settling on a gas rebate card. As a general rule, you're most likely to benefit from a gas rebate credit card if:
- You have an excellent credit score. As a general rule, the better the rewards of the card, the better your credit score needs to be. Gas rebate cards are usually only given to those with very good to excellent credit. If you have a lower credit score, then you may want to wait a little while and bring your score up before applying.
- You drive a lot. If you have a long commute or you spend a lot of time driving, you already know how often you need to fill up - and how it affects your bank account and budget. If you spend more than the average person each week or month on gas, then a gas rebate credit card could potentially save you a great deal of money, especially if gas prices continue to rise.
- You use credit cards wisely. If you carry a balance on your card, are late on a payment, or go over the limit, the money you'll spend on fees and interest will negate any money you earn back on gas purchases. If you are disciplined with your spending and responsible with your bills, then you could benefit from a gas rebate card.
What to Look for in a Gas Rebate Card
Once you've decided to apply for a gas rebate card, you can start narrowing down your choices. A few of the things to look for include:
- Interest rate. The lower the interest rate, the better. Look for a card that offers a 0% introductory rate. You can avoid hefty interest payments by paying your balance off each month or at least keeping your card under 30% of its limit.
- Cash back. Most cards offer up to 5% cash back on gas purchases, while some even offer as much as 10%. Shop around for a card that provides substantial rewards. Don't forget to look at the other incentives as well, such as cash back for groceries or other specific purchases, then look for a card based on your needs and spending habits.
There are a number of sites online that can help you choose a gas rebate credit card. CreditCardXPO.com, for example, offers a comparison of some of the most popular cards.
A gas rebate credit card can offer some sought-after relief at the gas pump. Shop around and do your homework in order to find the best card for you