Gas rewards credit cards have grown quite popular in recent months as prices began
to rise significantly, as they grant consumers double, triple or even five times
the cash back for fuel purchases than for other types of transactions. However,
it's important for people trying to obtain them to understand how best to use them.
1. Figure out if the card is right for you
The first thing you have to know about
rewards credit cards is that they carry higher interest rates than no-frills
accounts, and in many cases have annual fees as well. As such, you should closely
review your finances, gas purchases and borrowing history to determine whether you
would actually end up benefiting from this type of card.
For instance, if you carry a balance from one month to the next with regularity,
and don't often spend a lot on gas using your credit card, this type of account
might be problematic for you because it could end up costing you money.
2. Shop around
This is crucial when getting any type of credit card. Reviewing a number of
credit card offers, and weighing the balance between the amount of rewards
you will earn for every dollar you spend on the account versus the interest rate
and fees you will pay. Based on your previous borrowing experiences, if a card will
earn you less money than it costs, it is not the best credit card deal for you.
You might want to look for offers that will be more beneficial in the end.
Further, some cards may have restrictions on exactly which gas stations grant the
maximum rewards. If they aren't ones you frequent, or chains in your area, you
probably wouldn't benefit from using that particular card.
3. Find the best possible rewards
While many gas rewards cards will grant you cash back for every purchase you make,
some may instead give you a greater number of rewards points, which can then be
redeemed for items or exclusive offers. In these cases, it can be important to make
sure you are getting the kind of rewards that will be most beneficial for you given
your unique financial situation.
Other cards grant consumers bonus points or cash back when they meet certain spending
thresholds, particularly within the first few months the account is open. For instance,
those who spend $500 on their new account in six months may get some additional
cash back as a reward for loyal card use.
4. Use it wisely
Once you settle on a gas rewards card, there are a number of ways to maximize the
savings you enjoy. Again, because these accounts tend to carry higher interest rates,
the best way to avoid them may be to only use this card to purchase gas, and then
pay the balance off in full at the end of every month. By doing so, you will be
doing yourself a huge favor: you'll not only avoid the sizable interest charges
that come with carrying a balance over from one month to the next, but also maximize
the rewards you earn for every purchase you make at the gas station.
Again, it's always important to make sure that when you're reviewing different credit
card types, you are getting the biggest benefit from the account that you possibly
can. Use CreditCardApplications.com's
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Without advanced credit card comparison tools, finding the right credit card for
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