Prepaid Gas Cards Versus Gas Credit Cards

Gas prices have doubled since last year and motorists are embracing every gas saving tip thrown their way. There are quite a number out there, from improving driving habits, driving hybrid cars to using gas cards. Gas cards however, have been proven to really save money on gas. But before you go out and get a gas card, know that there are two types of cards- prepaid and credit, and each has its own features.

A prepaid gas card is a card that you can preload to your desired amount. The savings from prepaid gas card is gained up front. When you load your card, you load at a discount or pay less than the amount on the card. This card is good to use for people on a tight budget; your miles on the car and visits to the gas pumps is limited since there is a limit on the amount on the card. However, this still involves discipline on your part since you can easily reload.

The downside to using this card is the expiration date. Most cards have short holding periods or expire in such a short period. Loosing the card is another thing. The balance on your card is irrecoverable and this will be a big dent on the budget if the balance is quite a large.

A gas credit card on the other hand, works just like an ordinary credit card. The advantage over ordinary credit cards is that you save on gas purchases. Gas credit cards offer a 2% to 5% rebate on every gas purchase, depending on the card company. Rebates or rewards points are usually in the form of cash back which can be credited to the existing card. While other cards offer to convert rewards points into airline tickets, affiliated merchandise and gift certificates. These are equally attractive rewards but it is the cash back reward that tops them all. Cash back rewards can be used to purchase gas and still earn rebates no it. That would be compounding your savings, rebate on a rebate!

The downside to gas credit cards is you have to be vigilant in paying your bill in full and on time every billing period. If not, the maintaining balance will be charged by the applicable annual percentage rate. Rates range from 9.99% to 16.99% and this could easily undermine you savings.

Gas credit cards are preferable than prepaid cards because of the variety and amount of the rewards points or rebates. You also don't have to work around the balance of the card which is advantageous for emergencies. Staying on your gas budget is actually dependent on you alone and not on the card type.

For your gas money savings, start using gas cards. Choose a card-prepaid or credit, that better suits your gas spending habits. But whatever card you go with-a prepaid or gas credit card, you are sure of your gas money savings. Gas cards are a sure win!