With gas prices approaching $2.70 per gallon, it makes sense that consumers would look for ways to cut their budgets and even cut the occasional corner. More than 43 million people had gas cards in 2017, according to the U.S. Department of Energy. Credit cards that return cash are becoming increasingly popular as consumers look for easier ways to save a few dollars at the pump.
How Gasoline Cards Work
Many of these cards offer generous discounts up to 30% on gas and other gas-centric products. More consumers are opting for gasoline credit cards because of rewards and easy redemption.
So, what’s the catch?
The average for most gas cards is 23.6%, but some branded cards only offer straightforward discounts at their gas stations. If you are looking for a fuel card, which I like, you need to be aware of the difference between branded and non-branded fuel cards.
To qualify for cashback and reward schemes, you must have good credit standing, but even if you qualify, there will only be a high-interest rate that will eventually eat up your rewards. Since the majority of Americans fall under the category of “poor” and “average” credit ratings, most of them are considered ineligible for these incentive programs.
If you belong to the millions of Americans who are unable to pay off their balance in full each month, this type of card does not fit you. Your savings must be repaid monthly for the entire balance, and it is irrational to pay 24% interest to save 5% on petrol., it makes sense in this case.
With a cashback credit card, customers have the option to redeem their bonus for 6 – 12 months. In the end, the cashback runs out and the customer can no longer claim them, but if they have not yet been redeemed, you can pay attention to the deposit bonus.
Keep in mind to check the cashback limit before signing up for a credit card. Credit cards come with a cap on how much cash you can earn back each year, and in some cases even more. Most credit cards allow customers to collect a bonus of $300 – 600 per year for the first year and $1,000 – 2,500 for each additional year.
If you don’t repay the monthly balance, the interest could exceed $600, so be very careful when considering such offers.
If you are facing a situation where you have difficulty keeping up with your monthly payments, CreditGUARD of America can help you. Our certified CGOA advisors offer you an in-depth knowledge of your financial needs without signing. Call 800-282-8497 today!