Misleading Gas Credit Card Applications

Category: Finance, Credit.

With gas prices still very high, people want to save some money at the pump.

The average gas rebate credit card can save you up to five percent on gas purchases. Gas rebate credit cards are becoming a very popular alternative. If you' re not careful with your credit card use, a gas station credit card could make you pay more for your gas. Before applying for any credit card, read the terms and conditions. Misleading Gas Credit Card Applications. Most gas credit cards claim high cash back percentages, but there is usually a catch. The credit card companies are very careful with their marketing wording.

Here are some examples: cash rebates limited to one gas station company. high cash rebates only during an introductory period of usually 6 to 12 months. a monthly or annual limit on how much cash back you can earn. a tier structure with varying cash back percentages depending on spending. A cash back percentage is usually quoted as' up to 5% cash back' . So know what you are applying for to prevent disappointment. Once they say' up to' , you know you won' t get that high cash back all the time. Keeping a Balance Will Blow Your Cash Rebates. Over time these interest charges could cost a lot more than any cash rebates you earn. With any credit card, if you only make the minimum payment and keep a balance, you will pay interest charges.

Try to only use your credit card as much as you can afford to pay off next month. Suddenly they are paying for everything with their credit card to earn more cash back. This can be difficult to adjust to for some people. Meanwhile it seems as if their bank account is unaffected. Before they know it, their bank account is empty and a big credit card bill shows up. This could lead to impulsive spending. Then the interest charges add up.

Ideally you should keep track of your credit card spending and keep that much cash aside as money already spent. This is how credit card companies can afford to offer cash back. Gas Rebate Credit Cards Offering Rewards Other Than Cash Back. You could earn airline rewards on your gasoline purchases, but they cost more money in the end. If you are trying to save money with a gas credit card, choose your credit card rewards carefully. Airline rewards would likely only cover a portion of you or your family's airline tickets.

Other gas station reward credit cards offer gift certificates. Then factor in vacation expenses and lost wages. Again it usually only covers part of the purchase and it is something you wouldn' t normally buy. Why Are Gas Rebate Credit Cards Still So Popular? To really save with gas credit cards, apply for a gas credit card that offers cash rebates as checks or statement credit. Gas prices are a major economic factor. The credit card companies are aware of this concern.

We hear about gas price fluctuation in the news. Nearly every gas station company has its own credit card and many of them are heavily marketed. If you spend a lot of money on gasoline, a gas rebate credit card can get you the cheapest gas prices. Despite some reward limitations, many of these gas rebate credit cards are very good deals. A gas rebate credit card used responsibly could save hundreds on dollars off your gas bill each year. Pay off your credit card each month and avoid interest charges.

Ensure you are familiar with your credit card rewards program details though. Compare credit card offers carefully and read the fine print.