By Christopher
BillSavings.com Brief: One of the most popular credit card rewards are gas rebates. This is because the price of fuel is extremely expensive. However, many of the gas rebate credit cards have a very high interest rate. In these cases, it is best to choose a credit card with limited rewards, but with a low interest rate.
There is no easy answer concerning the skyrocketing cost of fuel. While fuel prices will rise and fall everyday depending on the cost of crude oil, one thing is for sure: the days of cheap gas are long gone. Millions of drivers are simply scrambling to control their fuel bill while those with a long commute are looking for alternative ways to get to and from work. High fuel costs force many families to sacrifice other areas of their budget to pay for their fuel. With all the advances in science and technology, it would seem that a reliable and affordable vehicle that ran off a renewable and affordable energy source would be the rule not the exception. However, the reality is that the dream of everyone owning an ultra efficient motor vehicle is still very far away. Although as necessity is the mother of invention, the current fuel crisis will force a sustainable option before the last drop of oil runs out.
Of course, there is the technology to use electric based vehicles as well as those that run off a renewable energy source such as hydrogen. The problem is that the cost to manufacture a hydrogen fuel cell car is still extremely expensive. In addition, the cost to add hydrogen-refueling centers throughout the world also creates a logistical nightmare. In the meantime, there are essentially two choices: limit the use of your vehicle, or come up with a way to buy cheaper fuel. While it may be impossible to limit the use of your vehicle, especially if you use it for work, you can find a way to buy cheaper gas: gas rebate credit cards.
Advantages
For aware consumers, using a gas rebate credit card is a great way to save money at the pump. Typically, a credit card offers members a series of reward options such as airline miles, cash back, or discounts at major retailers. However, specialty cards like gas rebate credit cards offer specific incentives such as a 1% - 6% rebate at the pump. Every time you use your credit card at a qualified location, you receive a rebate. While this may not be a large incentive for drivers with fuel-efficient cars, those with SUVs or a long commute will surely welcome any financial relief. All one has to do is browse through a variety of gas rebate credit cards and find the best deal. For example, it is best to avoid a gas rebate credit card that has an annual fee as well as one that has an abnormally high interest rate. Although, generally, gas rebate cards carry a higher interest rate than normal credit cards do. It is also wise to pay close attention to the rebate limits placed on each card. If you use a large amount of fuel, consider using multiple gas rebate cards to help alleviate the high cost of fuel while avoiding the pre-set rebate limit on each card.
Disadvantages
Much like any credit card, carrying a balance is financially counterproductive. If you carry a balance on your gas rebate credit card, you are essentially forfeiting your savings at the pump. This is why it is best to separate your gas rebate credit cards from your other credit cards. Keep your balances, which more than 60% of credit card users maintain, on low interest rate cards rather than on high interest rate gas rebate cards. Another disadvantage of a gas rebate credit card is the fact that everything is subject to change. This means that while many gas rebate cards offer an introductory period, which generally includes a higher rebate offer, once the period ends the rebate reduces. In some cases, the rebate may reduce even further without much notice. This is why an aware consumer is the one that benefits the most from using this kind of credit card. An aware consumer knows how much they save as well as knowing when to retire the card and move onto a new one.
8/26/2008
