Credit cards are a common and convenient way to make purchases, but did you know that some credit cards offer cashback or rewards specifically for gas purchases? If you’re someone who frequently drives or commutes, this type of credit card can be a great way to save money on gas expenses. Let’s dive into how these cards work and why they can be beneficial for your personal finances.
How does credit card cashback work?
Credit cards with cashback or rewards on gas purchases work just like any other credit card. You use the card to make your gas purchases and then pay off the balance at the end of the month. The difference is that with these cards, you can earn a percentage of your gas purchases back in the form of cashback or rewards points.
For example, let’s say you have a credit card that offers 3% cashback on gas purchases. If you spend $100 on gas, you will receive $3 back as cashback. This may not seem like a lot, but over time, these small amounts can add up and save you a significant amount of money.
Why are they beneficial?
1. Save money on gas expenses: The most obvious benefit of these credit cards is that they can help you save money on gas expenses. With the rising cost of gas, every little bit of savings can make a difference in your budget, especially when RVP season rolls around and gas prices rise in the spring
2. Easy to use: These credit cards are easy to use, just like any other credit card. You don’t have to worry about any extra steps or complicated processes to earn the cashback or rewards.
3. No extra effort required: Unlike other rewards programs where you have to actively track and redeem your points, these credit cards automatically give you the cashback or rewards on your gas purchases. This means you don’t have to put in any extra effort to earn the benefits.
4. Can be combined with other rewards: Many credit cards with gas rewards also offer rewards on other categories such as groceries, dining, or travel. This means you can earn rewards on multiple purchases and maximize your savings.
5. Some cards offer additional perks: Some credit cards with gas rewards also offer additional perks such as roadside assistance, travel insurance, or extended warranty on purchases. These perks can add value to your card and save you money in other areas as well.
Things to keep in mind:
1. Annual fees: Some credit cards with gas rewards may have an annual fee. Make sure to consider this fee and calculate if the rewards you earn will outweigh the cost of the fee.
2. Interest rates: As with any credit card, it’s important to pay off your balance in full each month to avoid high-interest rates. Otherwise, the interest charges can outweigh the benefits of the cashback or rewards.
3. Gas station restrictions: Some credit cards may only offer rewards at specific gas stations or have a limit on the amount of gas purchases that can earn rewards. Make sure to read the terms and conditions carefully before choosing a card.
Credit card cashback offers or rewards on gas purchases can be a great way to save money on your gas expenses. They are easy to use, require no extra effort, and can offer additional perks. Just make sure to consider any fees and restrictions before choosing a card. Happy saving!
