The Lowdown on Gas Rebate Credit Cards

2006-05-07

With gas prices at historic highs, many are being tempted by direct mail offers for gas rebate credit cards. Many of the offers are much like the introductory offers that credit card companies entice millions of people with only to stick them with high interest rates and fees down the road. Be sure to read the details carefully. Many cards only provide discounts if you buy their brand of gas. Be sure if you choose to open a gas rebate card, that you receive the discount no matter where you buy your gas.

Remember that companies reserve the right to change their terms and conditions as they deem fit. MBNA AAA was once a poplar credit card that offered 5% cash back, but when many only used the card for gas purchases, they changed their terms and only allowed 2% rebate on gas purchases.

Wholesale buying club like Sam’s Club and BJ’s, sell gas to club members, but some cards do not honor the full rebates at these clubs. This is because the card companies feel the customer is already buying at wholesale and not at retail stores whose primary function is selling gas.

Don’t forget that even though you are getting a rebate, the interest charges may eat up all your savings. Be sure to look for a card that allows you the pay off your balance each month with little to no interest charges. Always pay your card off each month to prevent interest charges from compounding. There is no sense in buying gas on credit and carrying the balance forward each month just to get a discount.

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