A Gas credit card, which is also referred to as a Gas rebate card, is a card that gets rebates and discounts on gas purchases. Gas cards can be issued by credit card companies or gas companies. The card works by getting card holders a rebate when they fill up gas using the card, and though the amount of money saved is small per transaction, it adds up to a significant savings after a few months. These are times of high oil prices and so, every consumer must exercise financial prudence and use his gas card while tanking up.
Gas cards can be of 2 types -
1. It can be issued by a gas company in collaboration with a card company like Visa or Discover. Such cards can be used by the card holder to make purchases anywhere, but they are allowed to save on gas only when they buy it from outlets affiliated with the card issuing company, i.e., the gas company. A gas card can be issued by a particular gas station as well, and in such cases, you must fill up gas from that particular station if you want a rebate.
2. Another kind of gas credit card is issued by credit card companies, and such cards allow card holders to get rebates when they buy gas from any gas station.
It makes sense to take the 2nd type of card because it gives you the freedom to choose a gas station. If you are bound to a particular gas station, then, though you will get a rebate, you may lose out on gas prices (because the card-issuing gas station may not offer a lower gas pricing as compared to other gas stations).
A gas credit card gets a rebate on gas purchases ranging between 3% and 5%. General rebate cards offer discounts on gas, grocery and other purchases as well. When you fill in gas, you swipe your card at the station and the credit card company calculates the rebate and records it in your account. You can redeem this credit (when it builds up to a sizable amount) against your regular credit card monthly payments. Some credit card companies reimburse the rebate credit by check or by way of a direct deposit.
You can get a gas credit card at an attractive APR (Annual Percentage Rate) if you have a good credit history and score. If your credit history is average or below, then the credit card company will charge a high APR, assuming you manage to qualify for the card.
Check for the following before choosing a gas credit card:
1. What is the rebate rate, and does it drop after a certain period.
2. Can the card’s terms be changed by the issuing company? If yes, then ask the issuing company what they will offer in place of the altered terms.
3. Do you have to spend a minimum amount per year to qualify for the rebate?
4. Are all gas stations eligible? Or, are you allowed to fill up from selected stations?
5. How is the rebate reimbursed? Does the card holder have to ask for it? Does it lapse after some time if the card holder does not ask for it?
The guide above will help you avail the right gas card. Remember to pay your dues on time and do not exceed your credit limit.