Gas rebate credit cards are increasing in popularity since the cost of gas keeps rising.
Since 2005 American gasoline prices have almost tripled in price. And everyone, from commuters to soccer moms, is feeling the pinch as monthly fuel bills soar.
Some Americans are feeling the pinch more than others depending on where they live. Data from the Energy Information Administration (EIA) shows that gas prices are higher in certain states or regions than others.
Understanding Gas Prices
According to the EIA, the West Coast had the highest gas prices in the entire United States in 2005. People in the Gulf Coast paid the lowest for gas that year mostly because the source of nearly half of the gas produced in the States comes from the Gulf Coast. Refineries are closer which drastically cuts down on the costs of shipping gasoline from a refinery to market.
Gas prices in California are especially volatile. One of the main reasons why California gas is higher and more variable than gasoline in other states is because the State of California operates a reformulated gasoline program. The state-operated program has more stringent requirements than federally-mandated gas. California taxes are also higher with a combined state, local and use tax of 7.25%.
These factors as well as the cost of crude oil, product supply and demand imbalances, and the seasonal demand for gas all affect the cost of gas, and ultimately the amount of money that leaves your pocket to pay for fuel.
Gasoline rebate credit cards can help you reduce your monthly fuel bill and make the pain at the pump a little less sharp.
How Do Gas Rebate Cards Work?
The basic idea behind gas rebate credit cards is that you, the cardholder, get back a certain percentage of the amount you spend on gas each month. Rebates are issued every month (unlike cash back credit cards which typically send rebate checks once a year) as a check or more commonly in the form of credit applied to your bill.
Rebates vary and fluctuate between 1% and 6% with an average return of 3%. The Discover Open Road card will give you 5% Cashback Bonus not only for your gas but also on any auto maintenance purchases. With no annual fee and a 10.99% interest rate after the six-month interest-free introductory period, the Discover Open Road card is one of the more popular ones.
The Chase PerfectCard MasterCard gives you an introductory 6% rebate on all gas purchases for the first three months. After that the rebate drops to 3%.
Choosing the Right Card
It’s important that you make an informed decision when determining what type of gas rebate credit card to get. Some cards may have restrictions that could end up costing you money.
Some restrictions include:
- A rebate offered only through pay-at-the-pump transactions and not on any inside counter purchases.
- A limit on the total annual rebate amount.
- Significantly reduced rebates on gas purchases at wholesale gas clubs.
- Rebates not paid out automatically and only if requested.
- A rebate expiration period where you’re required to use your rebate within a certain amount of time or lose it.
Interest rates on gas rebate credit cards can be very high, so it’s important not to keep a balance on your card. If you do, your interest payments will eat into your monthly rebate. By allowing a balance to accumulate, you’ll ultimately end up paying more for your gas because of the interest charges.
“Accruing debt and then paying interest to save a few dollars at the pump doesn’t make any sense,” Robert Manning, author of Credit Card Nation: The Consequences of America’s Addiction to Credit, has been quoted as saying.
Always read the fine print to find out if a certain gas rebate credit card is for you.
Marc Ilgen is an internet entrepreneur and author. He runs a website called Credit-Card-Apply-Online-Here.com to help people apply for a credit card on line. His website also lets viewers compare some terrific credit card offers for people who want a gas rebate credit card.
Tags: credit card, gas rebate credit card, gas reward credit card, reward credit card
0 responses so far ↓
There are no comments yet...Kick things off by filling out the form below.
Leave a Comment