Why Is A Gas Rewards Card Worthwhile
With the rise in gas prices, people are always in search for ways of saving up on their gas purchases. And rewards credit cards are being all over the place for those who really want some savings. Sometimes though they can be a good deal, but there are times that they are not. Still the gas rewards cards plays one of the most popular card around. And here are some of the reasons why applying for it is really worth it.
Why Gas Rewards Cards are so popular?
Part of its popularity is thanks to the fast rise in gas prices lately. Over the past years, gas prices have significantly rose and fell many times, but it was always far more up than down. This means that people are spending more and more at gas stations and they want to get something from their money.
What Are the Benefits?
Gas rewards cards are very much like any other rewards credit card. You purchase things, and then you get rewards. The only difference is that you get higher percentage back on your gas purchases, something like 3 to 6 percent. These rewards are usually given as a rebate on your credit card. Sometimes you can also get other types of rewards.
Sometimes too, your card can give you a free tank of gas, simply by being a good customer, what you get depends on the card you apply for.
What’s the Cost?
Nothing in life is really free. You can’t really expect a credit card company to give you that much cash backs and rebates just for the privilege of your business. Of course they want something.
Usually, the cost is a higher interest rate than others. Some cards have annual fees as well, but higher interest rate is more common in rewards credit card. An annual fee may mean that you can spend a fair amount before your rewards can beat out how much your card is costing your right off the top.
What to Look Out For?
Once you got the card you want to apply for, carefully look at the terms. Sometimes, it’s too difficult to get the best return on your cards. A rebate rate may be expressed as ‘up to’ 1% for non gas purchases, for example. The rate could vary depending on how much you use your credit card. You also need to know of card maximums for rewards. If you spend big amounts, you may find that you have come up against your reward limits.
Are They Really Worth It?
It would really depend on you, how you use your cards. If you have some balance, you’ll never purchase enough gas so that it will be worth the higher interest rate. It is just impossible.
However, if you rarely or never had a balance, the interest is of no importance to you at all. Pay your credit card off on time and you will be getting the reward without spending extra for the privilege. And it that is case, it a great deal then.
See: Gas credit cards