Saving Money At The Pump With Gas Cards
Gasoline credit cards are often referred to as Rebate cards, but in essence it is a type of credit card that provides rebates to reward gas purchases made on the card. Many credit card companies and fuel conglomerates offer these kinds of cards to the market. Usually, these two kinds of companies enter into a partnership to provide the gas credit cards to the consumer. With this system, money is earned as savings in the usage of the card.
Though the amount saved may be minimal at best, the accumulation of the daily purchases for one year would result in a large savings. Two varieties of cards are made available. One would have the logos of a fuel company together with a credit card company. With this card, there is an exclusivity of allowed use in the purchases of fuel. On the other hand, credit card companies provide the second kind but base the rebates on the amount of purchases and not the personality of the purchases. Even if it is a non-fuel purchase, there are rebates earned.
How Do Credit Card Companies Work
Gasoline cards operate much the same way as credit cards. Like many other cards, gas credit cards can be used for many purchases at gasoline stations. With each purchase, there is a 6% cash back option on the value of the purchase. In this case, the increasing cost of gasoline is effectively deflated with the cash back provision.
These cards work n a percentage basis, so that with each use, a percentage of the purchase amount is returned as value to the owner of the card. The range of said cash back provisions are anywhere from 1% to 6%. Points systems are the offering of other gas cards. Owners earn the points with the purchases of fuel made on the card and these points have a specific monetary value. The amounts are either received by another credit card or a check in the mail.
People must be fully aware of the provisions and the effects the credit cards have and what tips can be done to maximize its use. Make sure that payables are settled monthly . Also, getting credit card counseling is another option to fully understand the ramifications of the credit card use.
The Rewards of Credit Card Use
The benefits of a gasoline card can be quantified by the simple act of swiping the card at the gas station each time one fills up the tank. Also, records can be kept of the mileage of the vehicle and the amount purchased for gasoline monthly. Also, these cards are helpful when people travel great distances and do not have enough cash on hand to make the trip. In these instances, the card can be used and payments be made later.
Other credit card companies offer gasoline cards that allow normal use by the card owner. Fewer though allow balance transfers on credit cards but with diligent payment one would be able to improve their own credit scores.
See: Gas Cards