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A gas credit card, also called a gas rebate card, is a type of credit card that offers rebates on gas purchases. Available from both major credit-card companies and specific fuel companies, gas credit cards offer account holders the chance to save money each time they fill up at the gas pump. Though gas credit card holders typically save only small amounts with each gas purchase, the money saved can amount to significant savings over the course of a year.
There are two types of gas credit cards. The first type is a gas credit card offered by a specific gas station or fuel company. Typically, this type of card carries a MasterCard, Visa, or Discover Logo and can be used for purchases virtually anywhere. However, account holders can only receive rebates on gasoline purchased from the issuing gas station or fuel company.
If you use a particular gas station on a regular basis, obtaining a gas credit card from that station may be beneficial. However, you usually won’t be able to obtain rebates on purchases made from other gas stations. Since the gas station you frequent may not always offer the lowest prices, you may find such limitations undesirable.
The second type of gas credit card is issued by a credit card company and is not connected to any particular gas station. These cards generally offer rebates on gas purchases made at any gas station. They may also offer rebates on other types of purchases as well.
A gas credit card from a credit card company allows you to receive a rebate of about three to five percent on gas purchases. Some cards also offer three to five percent on grocery and pharmacy purchases. You may also receive a one percent rebate on other items. Rebates from a gas credit card may be credited on your statement or offered in check form. Some cards even offer direct deposit of rebate money.
Regardless of what type of gas credit card you choose, your credit score will be an important factor. Generally, a good credit history is required to obtain such a card, though some companies allow for less than stellar credit. Furthermore, a good credit history may be helpful in obtaining a lower interest rate.
@Comfyshoes - I have heard that these gas rewards credit cards do give really good rebates but the rebates work if you pay off your balance at the end of the month. If you carry over the balance you are defeating the purpose of the rewards.
Also keep in mind that many rewards cards also charge higher interest rates in order to offset the cost of the rewards. So if you pay off your balance at the end of every month you will come out ahead. You should consider this before you fill out a gas credit card application.
I have a BP gas credit card and I love it. Every time I fill up at a BP station I get a 5% rebate. I have gotten several checks for $75 already.
The only thing is that they don’t give you the 5% if you get gas at another gas station so you have to make sure that you fill up at a BP gas station. They only give you 1% on general purchases and 2% on restaurant purchases. I think that this is one of the best gas credit cards out there.
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