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Gas Rebate Credit Cards: Think Again Before You Get One

by Scott Siegel
Gas rebate credit cards are a great thing right? After all, you get a discount on something you have to buy. Everyone needs to buy gas so why not get a discount on it?

This is the way most people look at gas rebate credit cards. Buying gas is a necessary evil so why not get something back for doing it. This logic make sense on the surface but if you look deeper into what it means to get a gas rebate credit card you may find out it is not an advantage to you at all. In fact, this type of card could be quite a disadvantage (continued below)

Gas Rebate Credit Cards: Think Again Before You Get One

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Let’s start with the basic problem. This is a credit card. That means that you have to use it to get any benefit from it. Using the card means incurring debt. If you are in a financial position that you can absolutely without fail pay off the card in its entirety every single month then and only then does it make sense to consider getting this type of card.

For most of us, paying off all of our card debt each month is not a viable possibility. That being the case the last thing you need to do is to add another one to the mix. Do not add to your debt. Do not add another credit card to your wallet.

If you are an average driver, you spend about $1500 on gas per year. If you have a rebate card that pays you 5% back for your gas then you will get $75 back over the course of a year.

If you are late just once, on making a payment you will be charged $39 as a late fee. Now you only have $36 dollars of your cash back left. If you carry any balance at all you will have some interest. Even if the interest is only 3 dollars a month. You just ate up the rest of your cash back.

The only winner in this scenario is the credit card company. They managed to entice you to get a new card and they are getting fees and interest that more than make up for any rebate they might have given you.

If you are really looking for a safe way to get cash back for your gas purchases, look into customer loyalty cash back offers. Those rebates pay much more in the way of cash back and there is no credit card involved. No late fees and no interest and no impact on your credit.

About the Author

Scott Siegel author of Beat The Gas Pump 143 pages about saving gas and money at the pump. You can get $300 cash back for buying gas. Go to http://www.beatthegaspump.com . A better alternative to cash back rewards credit cards beatthegaspump.com.