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Much has changed in the world of gas credit cards. Since gasoline prices went up dramatically not too long ago, credit card issuers started putting caps on the amount of rebates that you can earn on gasoline spending. There are still some very good cards out there and we recommend a few of them and provide a guide on how to choose the best gas credit card for yourself.
Editor's Choice - Our Recommendations
The Blue Cash® from American Express is the only consumer cash rebate card that pays 5% rebates for purchases at supermarkets, gas stations and drugstores and also the only card to pay 1.5% rebates on "other purchases". You earn these rebate levels once your annual spending exceeds $6,500. You can earn unlimited rebates with this card. The advantage of this card over regular gas cards is that you can use it at any station and also earn extra rebates for other spending as well. Most cards have now capped the amount of rebates you can earn on gasoline spending because of gasoline prices, but this card still allows you to earn unlimited rebates.
We recommend the The Discover® Open Road(SM) Card because you can earn 5% rebates on gas purchases at any gas stations for up to $1,200 in gasoline spending. Discover allows cardholders to potentially double the value of the rebates earned by exchanging them for gift certificates of selected merchant partners. (ie up to 10% rebate percentage). New cardholders also get a 12 month 0% apr for both purchases and balance transfers.
How to Choose a Gas Credit Card?
To get the best gas credit card for yourself, you first have to understand the different types of cash back credit cards that are available in the market. They each have their strengths and weaknesses and you need to look at your own gasoline spending habits to decide which is the right card for you.
Station Specific Gas Credit Card - The first type of gas rewards credit card are cards that are issued by a particular brand of gas stations. For example, Exxon Mobil, Conocco Philips, Hess, BP, Lukoil, Shell all have their own gas credit cards. These cards allow you to earn cash rebates when you use your card at their gas stations. In the past, they use to pay a good 5% rebates when you bought your gasoline from their stations. Recently, however, there has been a change in how they give their rebates. With the rising price of oil in 2008, most gas cards now pay 15 cents rebates for every gallon of gasoline that you fill.
Advantages - The advantages of the gas card is that they allow you to earn rebates at a particular gas station. This will suit you if you only use a particular brand of gas station.
Disadvantages - You can only earn rebates at that particular gas station.
Gas Credit Cards that can be used at any station - While station specific gas cards lets you earn extra rebates only at their gas stations, there are gas credit cards that allow you to earn rebates when you purchase gasoline at any gas station. This is actually a much better proposition for most consumers. Example of such credit cards include the The Discover® Open Road(SM) Card.
Cash Back Credit Cards - You can also get cash back credit cards to earn cash rebates. The better cash back credit cards pay anywhere from 3% to 5% not just on gasoline, but also on other items like supermarket and drugstore expenditure. In this sense, a good cash back credit card is better than a dedicated gas credit card. An example of a good cash back credit card is the Blue Cash from American Express®, which pays you 5% rebates on gasoline, supermarket and drugstore expenses once your annual spending exceeds $6,500.
How do you get your rebates?
Different gas credit cards allow you to earn your rebates differently. Most station specific gas cards simply credits your rebates to your next statement bill. Some cards require that you request a check once you have earn a certain amount in rebates.
Caps rebates?
Because of skyrocketing gas prices the past year, many credit cards have capped the amount of rebates you can earn on gasoline spending. Though some put a monthly or yearly cap on the amount of spending that earns you rebates, the better gas credit cards allow you to earn unlimited rebates. An example of a card that allow you to earn unlimited rebates on gasoline spending are the Blue Cash from American Express®
List of Gas Station Credit Cards
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