Fight Back against High Gas Prices with Gasoline Rewards Credit Cards

Fight Back against High Gas Prices with Gasoline Rewards Credit Cards

Gasoline prices have been on a roller coaster ride lately as more civil unrest and political instability rocks the oil-rich Middle East. Although initiatives to reduce foreign oil dependence have been talked about for years, most consumers and their budgets are still heavily tied to oil markets around the world.

Whether it’s consumption spikes in China, rebellion in Venezuela, an oil spill in domestic waters, or a threatened blockage of shipping lanes in the Middle East it all comes down to unpredictable gas supplies and predictably expensive gas at the pump. But one way to take the sting out of higher energy costs is to use a gasoline rewards card, and for that reason the popularity of gasoline rewards credit cards has soared within the past decade. Fifteen years ago hardly anyone used these cards unless they ran a company motor pool, but now millions of households depend on plastic to pay for their gas while getting cash back or other rewards.

Back in 1992 Shell kicked off the whole concept with a 3% cash-back rewards card. The program made Shell so many loyal customers that the company soon bumped its rebate to 5%. As you can imagine other competitors followed in Shell’s footsteps and began to issue their own gas rewards cards. But these days there are all sorts of cards, and major banks offer credit cards that can earn rewards for more than one brand of gasoline.

Here is what to check out about a gasoline rewards credit card before applying for one to carry in your wallet:

» What is the APR or annual interest rate?

No matter what kinds of perks or rewards a gasoline credit card may offer, the main thing a cardholder needs to pay attention to is the interest rate. If that is too high and you ever decide to carry a balance it could wipe out whatever gains you have made from your gas rewards by offsetting them with the cost of paying steep rates. The exception to this rule is worth mentioning, however, for those who are disciplined enough to always pay on time and pay off the entire balance each and every month. For them the APR is not so important since they aren’t planning to pay any interest.

» Is there an annual fee?

Lots of gas rewards cards come with no annual fee, so of course those should be the first ones on your list to evaluate. If all things are the same otherwise then obviously a no annual fee card is better. But be sure to check the terms of the card and the rewards. If what you get back in benefits is worth more than the annual fee then you may come out ahead despite paying for the yearly membership. Look at the gas cards we’ve reviewed on this site for a good “apples to apples and “oranges to oranges side by side comparison before making up your mind.

» Do my rewards have limitations?

Some card companies restrict how many rewards you can earn in a month or year, or they may impose other limits that could impact your overall savings. There are those that reward you right away, for example, and others that reward you after you have hit a predetermined spending limit. Just be sure to look for these and factor them into your calculations before choosing the best card.

» Can I transfer points or rewards to other gas stations?

Unless you are really a loyal customer of one particular brand of gas, then you may want to shop for those gasoline rebate cards that let you get your discounts at various gas stations. Lots of cards these days give cash back rewards, for example, of from 3% to 5% in any spending category that falls under gasoline – no matter where you happen to pull in and full up your tank.

» What about purchases other than gasoline?

Gas rebate or gasoline rewards credit cards are not necessarily limited to petrol, either. Almost all of these gas cards let you buy pretty much whatever they sell in a gas station. So if you have an Exxon card, for instance, you may be able to earn rewards for buying not just gas but also motor oil, soft drinks, and replacement windshield wipers. Then there are rewards or rebate cards that offer discounts or cash back perks on a variety of purchase categories. In that case they may include all sorts of different merchandise from a wide range of retailers – not just gas from a gas station. In other words it pays to study each credit card offer and then compare and contrast them to one another until you filter out the top choices that meet your needs and deliver you the biggest rewards or cash back rebates for your specific card user patterns and habits.

To help you find quick answers to these and other questions related to gasoline rewards cards, check out our reviews, card summaries, and articles about gasoline rewards program credit cards.