Save Gasoline Costs with a Gas Company "Rebate" Credit Card
By Jeanette Joy Fisher
The cost of gas has continued to inflate over the past thirty years. Gasoline companies vie for your valuable business by offering tempting rebates and other conveniences. Exxon makes it easier for you to buy; all you need to do is wave your card and fill up. "Speedpass: It's more convenient than cash and faster than a credit card."
How much do you want to pay for convenience? Stop and think before you apply for another credit card. What impact will an additional credit card have on your credit score?
Your credit score goes down a few points each time you apply for credit.
Your credit score goes down when you use unfavorable "consumer" credit. Gas company type of credit isn't considered prime by mortgage lenders. In fact, the type of credit you use influences ten percent of your credit score.
Saving a little money for gas can cost you a lot of money in higher interest rates on your mortgages.
Also, gas company credit cards usually charge a higher interest rate than a major credit card like a bank Visa or MasterCard account. Check the annual fee. Some companies charge as much as $79 in annual fees. The big problem with gas credit cards--consumers let the account balance roll over to the next month and end up paying interest charges on top of the expensive gas. Will the 5 percent rebate make up for all these charges?
Now, for the good news...
Some banks offer quality Visa cards with rebates for gas purchased at any gas station. For instance, MBNA America Bank's AAA Diamond Advantage Visa gives you both reward points and gift certificates. Other banks like Citibank partner with gas companies to issue a MasterCard with a 5 percent gas rebate and 1 percent rebate on general purchases. When you make the minimum number of purchases, your annual fee is waived. Maybe it's time to transfer your airline mile credit cards into gasoline reward cards.
Choose your credit wisely. Determine your financial goals. Do you want to build wealth in real estate? Then make your number one priority for your credit: mortgage finance qualifications. Weigh your options of gas rebates with the bigger picture.
Copyright © 2006 Jeanette J. Fisher
Jeanette Fisher teaches how to get out from under credit card debt, how to use credit to make money, and six ways to build strong credit to finance your first home and multiple investment properties. For a free credit advice and free ebook "Credit Tips for Mortgage Financing," see http://worryfreecredit.com
Lower Your Gas Bill Using Credit Cards
By Joseph Kenny
It is no secret that the cost of gas has continued to increase and it appears that this trend won't end anytime soon. This has left many people looking for ways to reduce the amount they spend on gas every month. Many people may be surprised to learn that one method for reducing the cost of gas is by using credit cards. But you don't want to use just any credit card. You want to use a gas rebate credit card.
A gas rebate credit card is similar to other cash back rewards programs. When you use your gas rebate credit card to buy gas, a certain percentage of the money you spend will be credited back to your account by the end of the month. While most cashback credit cards only pay you once a year, gas rebate credit cards pay you each month. With the rising cost of gas, it is easy to see why consumers can save a lot money on the cost of gas. The percentage earned for using the gas rebate cards average at about 3%.
Many credit card companies will offer gas rebates for specific brands. Some of these can only be used at certain locations. This is excellent for somone who goes to a specific location to purchase gas. If you are the type of person who shops around for low gas prices, having a gas rebate card may not help you. If your car is running low on gas, looking for certain location to use your gas rebate card can be tedious. Because of this, many credit card companies have begin offering cards which can be used at any gas station.
These cards have become very popular among people who want to lower the cost of their gas. This is especially true if you have an SUV or truck. While most gas rebate cards will pay back the customer in the form of a credit to their account, some companies may offer gift certificates or other rewards. It is also important to remember that many credit cards have restrictions. Some cards only allow you to earn credit on purchases made at the pump instead of the counter.
Many gas rebate cards will limit the amount of credit you get back each year. Really good cards will give you a few hundred dollars back each year. Most of these cards don't require you to pay annual fees, and this is another great benefit. You will want to do your research to find the different cards available.
