About Gas Credit Cards

With gas prices going up, up, up, American consumers are scrambling to find ways to cut back on their gas costs. But before you sell your brand new SUV to shell the bucks on a more gas efficient vehicle, you may want to research an alternative way to save money at the pump.

One of the easiest ways to help deflect the pain of increasing gas prices is with a gas credit card. With a gas credit card, you’re putting money back in your wallet simply by using your credit card at the pump. Here’s the low-down on these cards, so you can see exactly how they will help your wallet.

How they work

Gas credit cards provide cardholders with rebates for every dollar they spend on gas. Typically, the program provides its cardholders with a specific percentage of cash back for their purchases. The amount of cash back varies program to program, but typically it will range anywhere from 1% to 5%. The higher end of the range typically is for short-term promotional periods, which may be an introductory offer or a seasonal offer.

Depending on the credit card, consumers will see their rewards come back to them either through a rebate check or a credit applied to their card. Account credits are most typical; and these are often applied on a monthly basis.

How to use a gas card to save big

Implementing these three easy tips will help you get the most out of your gas credit card.

• Use it every time. Of course, you want to be sensible with your credit card usage. The last thing you want to do is run up a big balance that you’re unable to pay off at the end of the month—interest charges can really add up!

  If you reserve your credit card to use on your everyday purchases, and make sure to use it every time you’re at the pump, you’re going to see your rewards add up fairly quick. Every time you swipe your plastic at the pump, you’ll be putting cash back in your pocket.

• Do your research. Some gas cards are for specific stations; these cards are advertised at the gas stations and that advertising can make the cards sound rather tempting. However, before you fill out the application, take a moment to consider whether you’re brand loyal or price loyal.

  If the station across the street starts offering lower prices, are you going to want to use them instead? If so (and who wouldn’t???), then you’ll want to shop for a more “generic” gas card. These cards will enable you to earn points toward a rebate at any gas station, so you won’t have to pay extra at the pump in order to continue earning your rewards.

• Track your spending. Using a credit card at the pump can help you assess your spending habits. By using the same card every time you fill up, you’ll get an accurate snapshot of what you’re spending on gas each month. This will help you create a monthly gas budget to ensure you’re not being wasteful with your gas.

  Tracking your spending at the pump can be quite eye-opening and create the motivation you need to make small changes in your driving habits. If you find your monthly gas spending is creeping up, then you’ll be able to make a more educated decision when you consider the next weekend getaway or whether to continue driving across town to the grocery store or restaurant that you used to live right next to.

Write to Meghan Clark at meghan@creditdonkey.com

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