Time to Take a Look at Gas Rebate Cards

Even with gas prices declining just a little, we still need to do whatever we can to make our gas dollar go farther. Hopefully now we're waking up and looking at what we need to do - right now - to end our dependence on foreign oil. Getting more alternative fuels going, of course, is paramount but will take many years. America is working on it. The here and now is for drilling, drilling, drilling. We need to get busy and get drilling. We must support efforts to get going now to responsibly and aggressively drill!

Now on a personal level in our day-to-day activities - we have little control over the price of gas but there are things we can do to save a little. I for one have cut my driving. I limit my trips and organize my destinations as best I can. I'm keeping my tires inflated. I'm driving slower on the freeways - down from 70 plus to 60 to 65. I try to avoid stop-and-go traffic, and I drive as smoothly as I can by slowing down gradually and accelerating gradually. The next thing I need to do is get an oil change and have my filters replaced.

It's also time now for us to take a look at gas rebate cards as another possible method to economize. It may sound funny to say that 'credit cards' can be a way of saving money, but actually they can be if thought is given -- and if you're careful in their use. I found an article recently that addresses this very well. I'll give you the high points below.

The right piece of plastic could save you hundreds of dollars a year at the pump. Credit card experts look at the current crop and pick their favorites.

Want to knock 20 cents a gallon -- even 40 cents -- off that upcoming $4-a-gallon gasoline?
Some gas-rebate credit cards can do just that.
Introductory rebates on these cards are now as high as 10%, while longer-term rewards tend to be in the 3% to 5% range.

Are they worth the hassle? If you're driving a 20-mpg car 15,000 miles a year on $4 gas, a 5% rebate would save you $150. But the wrong card could actually cost you money.
Any rewards card, whether air miles or gas rebates, is a gamble, really, that you can pay off the bill before the interest outweighs the rewards. Carrying a balance will probably wipe out any savings from a gas rebate. If you carry balances, your concern should be the lowest rate possible, not rewards.
But if you pay off your balance from month to month, doors open. You're free to hop from card to card, grabbing introductory rebate terms and jumping ship as they expire. For some people, that's a smart strategy.
The damage to your credit scores should be minor.

A final note of caution: The best annual percentage rates, or APR's, are reserved for those with the best credit scores. Rates of some cards can vary by close to 10 percentage points, depending on your credit scores. And a person with truly bad credit scores might not be able to get a card at all.

PICKING A CARD:
To evaluate cards, consider two basics: your driving habits and credit habits.

For instance, if you drive the same route daily and gas up at the same station regularly, then a card co-branded by that gasoline company might work best.

But if you tend to carry monthly balances on your cards, then you'll probably do that as well on a gas-rebate card and the APR becomes a concern. In that case you should seek the lowest interest rate.

For instance, the Chase BP Visa Rewards card scores high on most every card-rating Web site. It offers a 10% gas rebate for the first two months on gasoline purchases at BP and Amoco stations and 5% thereafter. The Chase BP card, however, has one of the higher APRs on balances: currently more than 12% (though it's 0% for the first year). If you usually carry balances, this may not be the card for you. If you don't keep the account open at least six months, you can lose the double rebates.

Also of note: the Chase BP card gives no rebate for any purchases at establishments that sell gasoline other than BP or Amoco.

The ExxonMobil MasterCard requires that rebates be used within six months of being earned. Otherwise, they expire.

You also need to check closely how rebates are paid. Some cards issue monthly or annual checks. Other plans apply the rebates to future purchases. Still others accumulate points that may be redeemed for cash, merchandise or airline miles. Some cards cap the amount of rebates.
A consumer should take at least 20 or 30 minutes to research the reward plans.
You'll find the details on top-rated rebate cards from CreditCardsPlus.com here.

The Experts' Picks:

• The Chase BP Visa Rewards card drew kudos from most experts. Its drawbacks are noted above, but it's the biggest rebate going.

• The American Express Blue Cash Card pays a comfortable 5% rebate on purchases at supermarkets, gas stations and drugstores, but only after $6,500 in charges. Until that point, it rebates only 1%. One expert states, “The aggressive charger might find the Blue Cash card is just for them,” noting that a family that charges most of its purchases could rack up $6,500 pretty quickly.

• The Discover Open Road Card, which offers 5% back on gas and auto-maintenance purchases. One expert notes, “But there is a $100-a-month spending limit on that rebate". Spend more than $100 a month, or $1,200 in a year, and the rebate drops to 1% or less. But partnerships with 80 other companies can as much as double the value of the rebate.

• Costco’s American Express TrueEarnings Card offers an unlimited 3% rebate on gasoline and dining expenses, 2% on travel and 1% on all other purchases. The rebate comes annually in the form of a coupon redeemable at Costco for cash or merchandise. Though the card can be used at any gas station, if you shop at a Costco that sells gasoline, its rock-bottom gas prices are an added bonus to the rebate.

• Many experts also like the Chase PerfectCard MasterCard (3% on gas and 1% on other purchases, 6% for the first three months) and the Capital One No Hassle Points Rewards (5 points per dollar on gas and 1 point per dollar on other purchases), though points can be more of a hassle to redeem than straight cash.