Understanding Gas Credit Cards and How to Benefit From Them

Gas prices continue to rise to records high and every one is keen to grip on any savings tip to augment these increases. One of the most widely patronized gas savings tips is the use of gas credit cards. They are a sure win on gas savings. If you are not into gas credit cards yet, now is the right time to get one. But before getting one, you must first understand how gas credit cards works so you can fully benefit from them. Below is a rundown on how gas credit card works and how you benefit from them.

Savings on every gas purchase

Gas credit cards work just like your ordinary credit cards; you can use this to pay for any purchase. The difference is that you save on every gas purchase. Gas credit card companies offer rebates every time you pump gas. That's why gas credit cards are also called gas rebate cards. Current percentage on rebates are somewhere between 2% to 6% and are usually in the form of rewards points that accumulate over time.

Types of rewards

There are many types of rewards that gas credit cards offer, from cash back, free merchandise, airline tickets to gift certificates, to mention a few. It is the cash back offer however that is the sweetest deal. Cash back rebates can be used for gas purchases and you can still earn rebates on them. Cash back is the ultimate reward, giving you your hard earned money right back for purchases you make. That's a reward on a reward-nothing can be sweeter than this!

Redeeming rewards

Some credit card companies that offer only cash back rewards may automatically credit your card of your accumulated rewards or issue and send a check. But there are others that may require requests for redeeming rewards. These card companies are usually those that offer other rewards other than cash back. So the request would generally include the type of reward preferred.

Maximize savings by paying your bill

The amount that you maintain on your gas credit card is charged with an annual percentage rate or APR. Current rates are somewhere between 9.99% and 16.99%. To escape paying for this interest and to maximize your savings, the key is to pay your bill in full every billing period. If not, the APR can eat out the savings that you accumulate or you may end up paying your card more than usual gas budget.

Introductory periods

To sweeten credit card deals, some companies have introductory periods in which percentage on rebates are double the regular rebate offering. The highest introductory rate is 10%, from cards that offer a regular rebate of 5%. Introductory periods usually range from 90 days to 6 months. So, at th10% rate you will earn an additional savings of 5% per month for three to a maximum of six months.

Using gas credit cards can really help you stretch out your gas money. Now that you know how gas card works, its time you use one and take start taking advantage of their benefits!

Do gas cards report to the credit bureaus?

I just found out that I don't have a credit SCORE on equifax (and therefore cannot get financing for anything) due to a lack of activity on my credit report in the last 6 months. So I am considering a gas card - IF it will report its' activity to the credit bureau. That way equifax will have to re-issue an actual SCORE.

Answer
yes gas cards are reported to the credit bureau's

the reason is because they are actually financed by a bank (normally Chase or Citi Bank) and they report to the bureau's....

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