Back in 1980, Discover introduced the very first reward card for its valued customers, and rewards credit cards have
really evolved since then.
The original Discover rewards credit card gave cash back to its customers.
Today, a popular version of the rewards credit card is the gas rewards credit card that allows you to earn rewards by
buying something that anyone with a vehicle has to have – gas!
How it Works
Gas rewards credit cards work just like any other type of standard credit card, but are usually only for use at one
particular gas station line, such as BP or Shell. Some cards only allow you to purchase gas, while others will allow you
to purchase anything that the store sells. However, there are some branded gas rewards credit cards that allow you to use
the card anywhere that MasterCard or Visa are accepted. Regardless, when using the card, you will simply present it at
checkout and it will be processed just like a standard credit card.
Rewards Offered
The type of rewards that you are offered with your gas rewards credit card depends on the bank or credit card issuer.
Different companies and different banks vary in the rewards that they offer, which is why it is invariably a good idea to
“shop around” for the card that offers the rewards that are of most value to you. You also want to make sure that you get
a card that you can use at the gas station that you frequent most. Some of the rewards that your gas rewards credit card might
offer include:
- Cash back. With this reward, you get cash back on each purchase you make. The amount is usually a percentage
of the total amount of your purchases over a particular period of time- usually a year. Cash back is considered to be the
best reward by most folks, especially if the card makes it easy to accrue cash back.
- Airline miles. If you travel, a gas rewards credit card that offers you points towards airline miles is a good reward.
Points are usually rewarded for each dollar that you spend using your credit card.
- Merchandise rewards. Some credit cards with rewards programs have their own catalog of merchandise that
you can choose for a reward. You would simply accumulate points towards the merchandise by shopping with your card.
Once you have the number of points needed for a particular item, you simply redeem the points and it is shipped to you.
Other Considerations
While it is important when choosing a gas rewards credit card to pick one that offers rewards that you can use,
you should also consider the terms of the credit card itself. Look for a credit card that offers you a low interest rate.
Many cards are available with zero percent interest during the first year that you hold the card. Others may offer a balance
transfer option that allows you to transfer the balance of other credit cards onto your gas rewards credit card.
Getting Approved
Applying for a gas rewards credit card is simple, and usually involves an online application.
Some gas stations may have the mail in credit card applications available on their counters, but most have now begun to offer
their applications online only. You will need at least a fair credit score to qualify for and be approved for most gas reward
credit cards, although there are a few cards out there that are specifically designed for those with less-than-perfect credit.
Gas rewards credit cards can be a great tool for those who need to track their gas expenditures for tax purposes.
And for those who commute to work and budget a particular amount of money each week to gas, the gas card can streamline
the payment process by allowing you to pay for your gas once each month without incurring any interest on your purchases,
provided it is paid within the grace period.
Updated: January, 8 2012