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At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Terms apply to the offers listed on this page. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Bankrate logo The Bankrate promise
At Bankrate, we have a mission to demystify the credit cards industry — regardless or where you are in your journey — and make it one you can navigate with confidence. Our team is full of a diverse range of experts from credit card pros to data analysts and, most importantly, people who shop for credit cards just like you. With this combination of expertise and perspectives, we keep close tabs on the credit card industry year-round to: Meet you wherever you are in your credit card journey to guide your information search and help you understand your options. Consistently provide up-to-date, reliable market information so you're well-equipped to make confident decisions. Reduce industry jargon so you get the clearest form of information possible, so you can make the right decision for you. At Bankrate, we focus on the points consumers care about most: rewards, welcome offers and bonuses, APR, and overall customer experience. Any issuers discussed on our site are vetted based on the value they provide to consumers at each of these levels. At each step of the way, we fact-check ourselves to prioritize accuracy so we can continue to be here for your every next. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. With the national average gas price topping $5 a gallon in June of 2022, consumers are feeling the pinch at the pump. One way to save money on gas is . Since roughly two-thirds of consumers pay for gas with plastic, according to the National Association of Convenience Stores, it makes sense for many consumers to earn rewards in the process. Gas credit cards are available as private label cards for specific gas brands or as co-branded cards, which are issued by banks and carry the logo of a payment network such as MasterCard or Visa. There are also gas charge cards that aren’t part of a and can only be used for purchases from the gasoline retailer. In addition, there are credit cards that offer bonus rewards for gasoline purchases, even though they aren’t co-branded with a gas retailer. Rebate amounts for gas purchases vary, but many cards fall in the 1 percent to 3 percent range, according to the experts paneled for this article. A few cards offer 5 percent off or more. But just having a gasoline card doesn’t mean that you’re saving as much money as possible on gas. Here are seven tips for using your gas credit cards wisely. Don t carry a balance
“As long as you’re paying off your balance in full every month, a good rewards gas card is found money,” says Joe Ridout, spokesman for consumer advocacy group Consumer Action in San Francisco. However, Ridout cautions, gas rewards cards are not appropriate for consumers who carry a balance, because these cards tend to have higher than regular credit cards. Here are Bankrate’s picks for . Before you choose one, be sure to compare the APRs, especially if you plan to carry a balance. Paying interest can offset any discount from a gas card. A typical gas credit card can have interest rates between 20 percent and 30 percent APR. When you carry a balance, the interest charges that you pay can easily exceed the or other rewards that you earn. Therefore, you should only use a gas card when you can avoid interest by paying your statement balance in full, every month. Don t pass up cheap gas to use your gas card
Before signing up for a gas rewards card, look at your gas-buying habits. Where and how often do you fill up your gas tank? Do you when you travel? Do you need a gas rewards card or could you simply switch to a gas station with lower prices? Unfortunately, too many drivers pass by the lowest price gas and visit the stations where they have a gas card — and often end up with minimal savings, or even paying more. In addition, consider the differences between private label cards, also called retail cards, and . When you have a card that gives you additional points, miles or cash back for gas purchases, then you can shop around for the best gas price and still earn rewards. Just keep in mind that gas bought at warehouse fuel centers like Costco and Sam’s Club won’t be eligible for most card’s bonuses. Don t drive out of your way to earn rewards
The savings offered by gas credit cards is small, but significant. However, even if you have to drive a few extra miles to fill up, the gas you waste can largely offset your savings. You also have to consider the value of your time as well as other costs associated with maintaining your card. To best use a gas card associated with a specific retailer, you should make sure that there are stations that aren’t out of your way. Consider how and when you ll collect rewards
Some rewards programs cap your rebate amount or set a minimum threshold for cashing out, so consider those details before signing up. Some gas cards offer rewards in the form of a discount on a single fill-up. This can deliver much more value to a car with a large gas tank than a smaller one. Others offer reward points that don’t have a clearly specified value. Be sure to understand before committing to a specific card. Check the rewards cards you already have
If you’re not a heavy gas user, then you might be better off with a general that allows you to earn points for purchases in other categories as well. In fact, some of these rewards programs are pumping up incentives by offering accelerated rewards in rotating quarterly categories including gas. Cards with rotating bonus categories include Chase Freedom and the Discover it Cash Back. Understand the card s terms
Private-label gas cards especially can have less competitive rates and terms, on par with subprime . That means consumers should watch out for high APRs, late payment fees, overlimit fees and enticing introductory offers designed to lure consumers in need of credit. If you’d wipe out the rebate savings from a gas rewards card by paying a high APR or fees. If you think you might carry a balance or incur late fees, you should be looking for a general purpose card that offers the . Don t overestimate gas savings
It can be easy to get excited about earning 3 percent cash back on gas, but you really have to consider how much savings that really is. According to the U.S. Department of Energy, the average fuel economy for a passenger car is about . And the average driver traveled 12,724 miles in 2020, according to the U.S. Department of Transportation Federal Highway Administration. Someone driving 13,000 miles, in a car that gets 24 miles to the gallon, will consume about 542 gallons per year. Based on the current average price of a gallon of gasoline, which is , this will cost about $2,048 per year. Using a card that offers 3 percent cash back on gas will result in about $61 in annual savings. That might not be enough to cause you to switch credit cards. The bottom line
Credit cards can be a great way to save money on gas, but only when used wisely. By taking care to choose the right gas card and being realistic about your potential savings, you can minimize the cost of fueling your car. SHARE: Cathleen's stories on design, travel and business have appeared in dozens of publications including the Washington Post, Town & Country, Wall Street Journal, Marie Claire, Fodor’s Travel, Departures and The Writer. Claire Dickey is a product editor for Bankrate, and . Before joining Bankrate, Claire worked as a copywriter for brands within the telecommunications industry as well as a hybrid marketing and content writer. Related Articles