Is a Gas Rebate Credit Card a Good Idea?
What is a gas rebate credit card, and why are they so popular? Find out, and also learn whether you should have one
Nothing sounds better than a gas rebate credit card -- actually, in this day and age, nothing sounds better than the word "rebate," period! But is a gas rebate credit card really all it's cracked up to be?
Well, yes and no. On the surface of it, the card is exactly what it claims to be, and you will get money back at the pump. But there's often more to these cards than meets the eye.
Things to watch out for with a gas rebate credit card
There are a number of things you should look into before you leap with excitement and snatch one of these cards.
1. How much of the great deal is an introductory offer?
Many gas rebate cards offer really good deals (say, 7 or 8% cash back) for the first few months, after which it falls back to 2 or 3% -- not something you'll find advertised in the pamphlet.
2. How is this card's reputation?
There are many stories of gas rebate credit card companies suddenly changing the terms on their customers, making huge drops in returns. And there's not really anything you can do about it (except stop using their card) -- it's their company and they have the right to do what they want with it.
3. Is the card any good outside of the gas rebate?
Many gas rebate cards make up for their losses in rebates with increased interest payments. Since statistics show that 60% of people carry a balance on their credit card, an interest rate of, oh, say 25% is going to hit you hard -- and the gas rebate won't be worth it.
That's not to say that you shouldn't get a gas rebate credit card -- only that it pays to look before you leap.
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