With gas prices now above $4 a gallon across the country, it’s no wonder why consumers are looking for even more ways to save. A trip that used to cost $20 is now suddenly $40, while all other expenses - such as wear and tear of a car - remain the same. How to save?
One way is to look at gas cards, which can very well save an average $.20-$.30 per gallon. What’s more, many of these cards also offer savings at other stores too, such as supermarkets, drugstores, and merchandise warehouses.
When considering gas cards and their benefits, cardholders should primarily look at their driving and (credit) spending habits. Do you prefer one type of gas to another? If so, you may wish to get a card that is specific to that station. Since you only pump that type of gasoline anyway, it stands to reason you get as much from your loyalty as possible.
With this said, also look at a card’s APR and any other fine print that may impact the overall benefit of using the card. If your credit habits suggest you’ll end up carrying a balance, then maybe a gas card isn’t worth it. For such rewards credit cards, the savings are very specific and incremental. A few months of finance charges and any “savings” will be out the (car) window.
If you’re able to pay off your monthly balance though, gas cards can be quite beneficial. Since gasoline is a necessity for most of us, it’s certainly a salve to think that there are some savings to be found amid rising prices. With responsible use, a gas card could be like finding gasoline at a 5% discount or even, 10%.
The Discover Open Road credit card for instance offers 5% back on your first $100 spent each month on gas and/or auto-maintenance purchases. In addition, it offers a 1% cash-back bonus on all other purchases. The best feature of this card however is probably the fact that the cash rewards never expire. Plus, there’s no annual fee. And finally, it can be used at any pump that takes Discover.
Like most rewards cards though, gas cards like the Discover Open Road card still need to be understood thoroughly by the cardholder, as rebates are all redeemed in different ways.
Does the company require notification by you? Does it come in the form of a check or is direct deposit available? Does the credit go straight onto your card? To these questions, find out. Know how the rebates work, as they’ll do you no good if you can’t access them. As always, read the fine print.
Other gas cards you might consider include:
- Chase BP Visa Rewards, which is specific to BP and Amoco stations, but offers one of the highest rebates on the market - a 10% gas rebate for the first two months.
- Chase PerfectCard MasterCard, which can be used at any pump and offers a 3% return on gas and 1% on related purchases.
- Capital One No Hassle Points, which uses a point system - 2 points per every dollar spent at gas stations, major grocery stores, and drugstores; redeemable as gift certificates or merchandise.
Comparison-shop for the card that best suits you: as a driver and consumer. Keep in mind that some gas cards do have expiration dates, as well as high interest rates that can quickly erase any benefits earned. As with any credit card, responsible use will enable you to enjoy the full potential of the card’s worth.
