Posted on January 11, 2010.
How exactly the credit card gas work? I understand that you get rewards for charging gas on certain credit cards, but in what form these rewards come? Cash Back,% the next gas purchase? etc.?? I just want to know how they work before I ask. My excellent credit, 795, so please do not tell me that you must have good credit, etc. .....
Gas Rewards credit cards are similar to cash back cards. Most operate on a percentage system. Whenever you purchase fuel, a certain percentage of cash returned to you. This generally between 1 and 6%. So if you spend $ 200 on fuel each month and have a card that offers 5% discount, you will receive a reward of $ 10 each month. How's that for pumping fuel?
Some gas rewards credit cards operate on a points system. You earn points based on your fuel purchases. These points can then be traded against dollars. Your cash is returned either by check mailed or a credit card statement. Read more about it at: http://www.credit-card-gallery.com/artic ...
I had a couple of these cards.
The Mastercard Getty sends 20 million coupons each time you earn $ 20. It's a real pain, since these coupons are attached to the bill, and you must ensure you do not accidentally throw. Then you have to clip and carry in your wallet until you go to a Getty gas station. Then at the gas station, you have to walk the coupon in the cash register, then they take your $ 20 discount. Unless you forget since the Getty gas stations are not so frequent. And to add more stupidity, the card says, "Lukoil" in large letters on it, if you're walking around with what looks like a Russian gas card in your wallet.
"I had a Shell Mastercard forward. It was completely automatic: they thought about it and put the right credit on your bill. Much easier, but a lower payment option.
I gave the cards for most gases. I prefer cash. My two cards that I use now are the cards MBNA Fidelity 529 (2% discount on all deposited in a college my toddler has 529. This card is only valid if you have children) and the American Express Cash Card discount (up to 1.5% cash back, but I do not think this is offered more). These cards have no annual fee.
(I am not affiliated with any of these companies, except that I use their cards).
Small steps like paying your bills on time and using only a portion of the credit available to you. Also use your credit cards to make payments regularly small, so they end up in your credit file. More tips available at http://www.acreditlibrary.com/buildcredi ...
Some of them give you a discount cash-back for the first number of gallons purchased x. The ones I looked at do not give this advantage forever, so I do not think they were worth.
