Gas rebate credit cards

If you have a long commute, you drive a lot for your job or you're always toting the kids around, gas rebate credit cards can save you a lot of money, especially as gas prices continue to climb.

Gas rebate credit cards are rewards credit cards that pay above-average rebates on vehicle fuel purchases at most neighborhood filling stations that accept credit card payments, regardless of brand. Like most rewards cards, gas rebate credit cards usually require an excellent to good credit score.

Don't confuse gas rebate credit cards with gas charge cards, which can only be used at a certain brand of filling station. Gas rebate credit cards give you a lot more flexibility and they don't just pay rewards on gas, either.

Who should get a gas card?

The best rewards credit card for your needs depends entirely on how you use your credit card. In general, a rewards card is best for people who pay their balance in full each month because interest rates are often a little higher on credit cards that come with rewards. Some cards are also available without an annual fee.

While rewards credit card offers that include bonus frequent flyer miles or free nights at a hotel may get attention for their glamour factor, if you drive a lot for work, have a long commute or travel often by car, a gas rebate card may be a better deal for you.

The more gas you have to buy for your commute or to haul your kids around to activities, the more you'll save with a gas credit card.  

You can go one of two ways to earn rewards for buying gas: either a gas credit card tied to a particular brand of gas or a gas rebate card that you can use at a variety of gas stations.

How many different types are there?

Gas rebate card or gas card?

The first factor in your choice of a gas rebate card is whether you are brand loyal to your gas station. If you always buy from the same place or travel in an area dominated by one particular gas station chain, you may want to choose a gas card tied to that chain.

• Gas card: There are two types of credit cards associated with a particular brand of gas. You can get a regular credit card that can be used anywhere Visa and MasterCard are accepted, and will earn rebates only on gas purchases from that particular type of gas station. You may or may not also earn rebates on other purchases with these cards. The other type of gas card is one that can only be used at a particular retail location, such as all Exxon/Mobil stations. In general, you can earn cash rebates such as ten cents per gallon of gas with a gas card tied to a particular company.
• Gas rebate card: If you buy from several different gas stations, or travel to places with a variety of gas station options, you may be better off with a gas rebate card that gives you rewards on gas purchased anyplace. These cards can be used anywhere Visa and MasterCard are accepted and will usually provide you rewards for all types of purchases, where spending on gas earns the highest rewards. You can earn two to five percent on your gas purchases along with earning one or two percent on other spending.

An example of a gas rebate card is the True Earnings Card from Costco and American Express. This credit card, which has no annual fee, earns customers three percent on all gas purchases up to $3,000 annually and one percent on all gas purchases above that limit. The gas can be purchased at any retail station. In addition, you can earn two percent on restaurant and travel expenses and one percent on groceries. This card requires good credit for an approval.

There are two different types of gas cards - those that are associated with one particular gas chain and those that allow owners to gas up at any station. Those affiliated with a particular gas chain offer excellent rewards when buying that brand of gas, but limit your choices. Apply for a gas rebate credit card that allows you to gas up at any station if you use many different brands of gasoline, or don't want to search for a particular brand of gasoline when you travel.

So these cards are only good for gas?

No. Typically you can use your gas rebate card anywhere your Visa or Mastercard are accepted. And you can earn rewards for using the card for non-gas purchases. But your best rewards are going to be accrued when you buy gas at the station sponsoring the card when you have a card affiliated with a particular gas chain, and whenever you buy gas using a gas rebate card that is not affiliated with a specific fuel retailer.  However, there are retail gas cards available which you would only be able to use at a specific retail chain. 

What are some of the other advantages?

In addition to the per-gallon fuel credit, many gas credit cards offer fuel credits for nonfuel purchases you make - either at the company's stations or wherever the card is taken. Some cards also offer no annual fee, and complete liability coverage. According to a Fox Business report, the average person could save up to $250 a year on gas alone.

What should you base your decision on?

In addition to analyzing the frequency with which you buy gas, you should also think about where you buy your gas. If you tend to stop at the same station all the time - or the same brand of station - then a credit card with that gas company would make sense. But if you tend to buy gas at many different stations, it is better to have a gas rebate credit card that does not tie you to one particular brand.

How to qualify for a gas rebate card

In general, gas rebates are only available on good credit credit cards or for people with excellent credit. Check your credit score before applying to make sure you can qualify for a gas rewards credit card.

Compare the gas rebate cards on this page to see which credit card might be the best choice for you.

So, if I buy at many different stations, should I forego a gas card?

Maybe. Another option for you would be a gas rebate credit card that provides rewards at a number of different stations. Cards such as Capital One's No Hassle Cash Rewards card offers 2 percent cash back on gas, and cards from Costco and American Express offer 3 percent cash back.