With gas prices skyrocketing, millions of people are flocking to gas cards to help with the rising fuel cost. Gas cards are brand specific credit cards that offer consumers rebates and rewards for using their credit card. Like most credit cards that offer a reward programs, there are specific guidelines that consumers' need to be aware of. In many cases, a traditional credit card is better suited for the task.
For starters, gas reward cards are designed for people with good credit that pay off their balances on a monthly basis. If you have the tendency to carry over balances from month to month you will be better served using a regular credit card. Reward credit cards in general, have higher interest rates and shorter grace periods. Therefore, when you carry a balance, you will be paying more in interest even after you consider the rewards.
Sixty percent of all gas credit card holders carry a balance from month to month; this is how the credit card issuers pay the reward benefits. When considering gas credit cards, consumers need to take a careful look at the benefits that are offered. Most gas cards offer better benefits as an introductory incentive to attract new card holders. You should look past these initial offers when comparing cards and pick a reward program based on the benefits that occur after this initial period is over.
The most important thing to look for when considering a gas credit card is your driving habits. Will your gas card be used primarily locally, or will it be used for travel? Make sure there are close and convenient stations to use if your card is brand specific. Having to travel an extra three to five miles out of your way to use your gas card can eat in to any benefits that you receive from using the card. Many gas cards offer additional discounts on specific merchandise in specific retail stores; again, what is the proximity of these stores to the station?
Gas credit cards are issued by banks like such as, Chase, Discover or Citibank or by a gas company like Shell, Mobile or Chevron. The most important distinction is that the brand specific gas cards require that you buy their gas to take advantage of any benefits they offer. Ironically, it's usually the banks, rather than the gas companies, that underwrite and bank-roll the credit cards anyway. The difference is that the gas company credit cards are usually easier to qualify for than the bank issued cards are. The caveat is; interest rates and/or rewards are directly related to your credit. Marginal credit results in marginal interest and rewards.
When comparing benefits, many bank issued credit cards tend to mirror each other. Some of the more common benefits include cash-back rebates that range from 2% - 5%, cash rebates on purchases, 0% introductory rates and no annual fees. On the other hand, the benefits offered by the gas credit card will include things such as air miles rebates, hotel and travel discounts, car repair rebates and rebates on groceries at participating stores. When making a choice on what card to use, choose the benefit that best matches your lifestyle.
A card that we recommend at Direct Banc is the Discover® Open Road(SM) Card. This card offers cardholders a 5% in cash rebate on gas and car maintenance purchases up to 1% for general purchases, and .25% for purchases made at select warehouse clubs and discount stores. Of course, you could consider other cards like the BP Gas Credit Card Visa® Rewards and the Capital One® No Hassle Miles(SM) Rewards for travel and gas. Each of these cards offer a unique reward benefits package that compliment varied lifestyles. Taking time to read the fine print and picking the right benefit is the key to getting a gas credit card that is truly a benefit for you.
- Related Videos
- Related Articles
- Ask / Related Q&A
- What Gas Stations Accept Gas Credit Cards?
- Gas Station and Gas Card Dilemmas
- Credit Cards For Poor Credit - Secured Bad Credit Credit Cards
- 14 Tips to Rebuild Credit and Improve Credit Scores
- Check Cards versus Credit Cards
- Chase credit card: offer different cards for your every need
- Managing Your Credit Cards for Credit Repair Success
- Establishing Credit With a Credit Card




Make Money on the Web - What are My Options?
By: Tim Emerson | 12/11/2009Make money on the web needs some thought process as there are so many assorted info and data on the web. Are you wanting to sell a product or a service or do you want to earn money from advertisers on your little piece on the info superhighway? The choice is yours and the trails are marginally different from each other. With the first choice, selling a product or a service, it's much better for you to focus on a service that you are already presently doing or have operational ...
Debt Collection - Do You Know The Top 7 Tips To Handle Difficult Debtors And Recover Your Money?
By: Daljeet Sidhu | 12/11/2009Every business has its share of slow-paying and non-paying customers. Bad debt is a problem for businesses of all sizes. If you are considering dealing with non-paying customers yourself, think again. It may make sense to hire a collection agency instead. They are skilled in debt collection strategies and legal...
Car Insurance Coverage Recommendations - A Few Facts to Help You Decide
By: Jim Bassett | 12/11/2009If you are a vehicle owner, you no doubt realize the risk of driving without car insurance. In the USA it is compulsory for car owners to at least have some basic form of car insurance. Many other countries do not have the same requirements, but that does not mean...
Auto Insurance in Missouri, Requirements and Penalties
By: Jim Bassett | 12/11/2009Auto insurance in Missouri, like many other states, any driver or owner of an automobile is required to carry liability insurance on their vehicle. Even though this is a requirement, many individuals involved in accidents find that the drivers have no insurance. Due to this, many have unpaid collision claims...
A Guide to Help You Understand the Different Kinds of Automobile Insurance Discount Plans
By: Jim Bassett | 12/11/2009What is the meaning of automobile insurance discount? Well the answer is that this is a discount that is offered by an auto insurance provider in a bid to acquire more customers. Furthermore, such discounted auto insurance policies are available as different types each of which is designed to appeal to...
Auto Insurance Comparison - A Look at the Different Types of Auto Insurance Policies
By: Jim Bassett | 12/11/2009If you own a car, you and your friends no doubt very often complain to each other about the astronomical cost of car insurance. Especially if you have never had an accident, you might feel that you are subsidizing bad drivers with your high premiums. Perhaps it is time that...
Improving Cash Flow with Invoice Factoring
By: Tom Rankin | 12/11/2009Smart companies throughout the United States are improving cash flow with invoice factoring. In order for a business to operate, there must be sufficient cash or operating capital, available to pay expenses and keep operations going. Many companies struggle with cash flow problems and rely on debt in order to stay afloat.
Earn Extra Money With Maverick Money Makers
By: WALIEK COPELAND | 12/11/2009As the holiday season slowly approaches the need for extra money is felt more and more. Their are plenty of ways you can get some extra income in your pocket to help with shopping this holiday season. Most do not know that keeping up that income can keep your pockets...
Gas Credit Cards - Tips on Picking the Best Card
By: Aubrey Clark | 02/07/2008 | FinanceWith gas prices skyrocketing, millions of people are flocking to gas cards to help with the rising fuel cost. Gas cards are brand specific credit cards that offer consumers rebates and rewards for using their credit card. Like most credit cards that offer a reward programs, there are specific guidelines that...
Myth vs. Fact Helping Homeowners - Another Perspective
By: Aubrey Clark | 31/05/2008 | PoliticsThe looming mortgage crisis has affected almost everyone in all facets of life. When the homes stop selling the builders stop building, the carpenters stop nailing, the painters stop painting, paint stores stop selling and Home Depot stock hits record lows. Vertical damage is universal in almost all aspects of...
Will Using 0% Balance Transfer Credit Cards Lower My Credit Score?
By: Aubrey Clark | 30/05/2008 | FinanceWe are asked this question on a regular basis and the short answer is yes, it probably will. The caveat is how much will it hurt the scores, for how long and is there anything I can do to keep my credit score from dropping? Some times the benefits out-weigh the...