Are Gas Rebate Cards A Good Idea?

Many credit cards offer amazing perks to entice customers into signing with them. Often times these rewards are discounts at hotels, airline tickets, and other like benefits. A reward that is garnering more attention these days is the chance at free gas.

Gas rebate cards are especially tempting with record breaking oil prices promising to increase gas far past $4 a gallon. In an effort to save some green, consumers are searching for deals anywhere they can find them and one of those places happens to be credit cards.

This is seen as irony to many who view credit cards as the scourge of a debt free future. In reality, credit cards do not have to ruin anyone credit rating if used responsibly. For those able to use credit cards sparingly and afford to pay off the monthly payments these gas rebate cards can really benefit from gas rebate cards, and really most of the reward credit cards that are out on the market today.

Gas rebate cards offer a percentage back on gasoline purchases as long as certain requirements are met. Like other reward cards you will have to “earn” the rebate before being able to use it. If you plan on getting a gas rebate card you will need to understand the terms and conditions of that card in order to benefit from the free gas. Many times, cards will offer introductory rates for a limited period of time and then lower that rate.

For example Credit Card ‘A’ offers a rebate of 15% for the first 3 months and then drops it down to 5%. Credit Card ‘B’ offers a rebate for 10% for the first few months and then lowers it to 7%. While Credit Card ‘A’ will look great at first glance, consumers need to realize that after the initial rate, after that first 3 months, the rebate will only be 5% where as Card ‘B’ will be at 7% after the introductory period. Sure, during those first few months you can be saving up to 15% on gas, but afterwards you’ll only save 5% when you could be saving 7%.

This is an important fact to consider as you look for a gas rebate card. Another factor is your spending and driving habits. Since reward cards are usually available at a higher APR, Annual Percentage Rate then other cards if you keep a balance on you card you may want to search for a lower interest rate instead of a card that gives you perks. You will probably end up spending more money on fees and penalties if you choose to go with a gas rebate card with a high APR instead of a regular credit card with a low APR. Ideally, your credit card should works towards your benefit instead of the benefit of the credit card company.

As for driving habits, those with short commutes or for those who only drive on the weekends will really not see much of a benefit from a gas rebate card. However, if you drive an hour or more to and from work or if you find that a large chunk of your income is going to the pumps a gas rebate card just might be the ticket.

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