Most of us have received offers for gas rebate credit cards. But of course, not all of us immediately obtained the very first reward credit card presented to us. Some of us felt a little apprehensive in enrolling for a gas rebate program. The reason behind this is that we do not how this program really works.
So to give us all a clear understanding of how we can benefit from using a gas rebate credit card, let us discuss what this card is all about. We will also tackle some pointers that will assist us in securing the right reward credit card.
What is a Gas Rebate Credit Card?
A gas rebate credit card is a reward program provided by most credit card issuers. This program is especially designed for car owners who regularly consume and purchase gasoline products. How does this program work?
In a gas rebate credit card, a cardholder can earn a percentage of the money spent on his gas purchases. Still, the cash back incentive depends on the rate featured on his the reward program. For example, a cardholder takes a reward credit card which offers a cash-back rate of 5%. If he is able to accumulate a total of $5000 on his gas purchases, he can expect to receive as much as $250 from his credit card company.
Not only that. The credit cards also offer a wide range of credit card rewards aside from cash-back incentives. Cardholders can also receive free car insurance plans, discounts on maintenance and repair services, free car parts and of course free gasoline products.
Some Drawbacks in Using Gas Reward Cards
Still, just like most credit card programs, gas reward cards also have their own set of disadvantages. Some cards offer very high percentage of rebate cash back rates but only during their introductory periods. Once the 90 or 180 day period is up, the rates will significantly decrease into a mere half of the incentive rate you used to enjoy.
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Another drawback in using gas rebate cards is their high rates of interest. Even if this program provides amazing credit card rewards in the form of monetary bonuses and car repair discounts, still you will be required to pay a huge deal of cash should you decide to carry a credit balance each month.
So, how can you lessen the impact of these disadvantages when you are using your own gas rebate credit card?
Tips on Choosing and Using Gas Rebate Credit Cards
To lessen the negative impact of using gas reward cards, you have to carefully choose the credit card program you will be getting. And of course, you should also use your gas rebate credit card in the most responsible way you can. You can employ the following tips when you shop for and use a gas rebate credit card:
– Search for the program that offers the lowest interest rates and fees.
– Shop for programs that provide the highest cash back rates.
– Identify the gas stations you frequently visit and find a credit card that is sponsored by your preferred gas company
– Pay your dues in full and on-time each month.
– Charge to your card only the purchases that you can surely pay off.
– Avoid opening multiple gas rebate credit card accounts.