Are Gas Rebate Credit Cards For You?

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By By Herb Weisbaum

Summary

They could save you as much as 15 cents a gallon on gas, but be sure to read the fine print.

Story Published: Aug 28, 2006 at 3:11 PM PDT

Story Updated: Aug 31, 2006 at 8:36 AM PDT

Are Gas Rebate Credit Cards For You?
SEATTLE - Gas prices continue to drop, but drivers in Washington are still paying about $3.04 for a gallon of regular. That's 17 cents more than the national average!

Some people have found a way to pay less at the pump. They use a gas-rebate credit card.

Let's assume you have a gas rebate card that pays back 5%. If the price on the pump is $3.00 a gallon, you're really paying $2.85 after the rebate; a savings of 15 cents a gallon! For the average driver the savings would be about $100 a year.

Here's what to look for in a gas rebate card:

  • NO ANNUAL FEE: Quite frankly, there's no reason to pay an annual fee that will eat-up part of your rebate.

  • NO LIMITS: Some cards will only let you earn so much cash back each year. Or the rate will drop dramatically after you spend so much. Find a rebate card that doesn't limit your rewards.

  • NO EXPIRATION DATE: With some rebate cards, you'll lose the cash you earned, if you don't claim your cash within a certain time period, in some cases as little as 6 months. Other rebate cards have no expiration date. That's what you want.

    These gas-rebate cards are not for everyone. They tend to have a higher interest rate than plain no-frills credit cards, so you don't want one if you carry a balance...ever.

    The higher interest will more than eat up your rebate. Rebate cards are only for people who pay off the balance each month.

    When comparing cards, remember to ignore the hype and read the fine print. The ad may offer a 10% rebate, but chances are that's a teaser rate that will drop to 5% or less after 60 to 90 days.

    For More Information:

    Read Herb's article on Gas-Rebate Cards on MSNBC.com

    Top Rated Gas-Rebate Cards