National average gasoline prices are undoubtedly heading for the $4 per gallon mark. And the offers of cash back or other rewards at your local station — where gas prices are probably a lot higher — may look awfully tempting. But don’t think you’ll reap windfalls if you sign up for that new gas station credit card!
The money mavens at Consumer Reports took a look at gas credit cards rewards and found a few things in the fine print which could make the idea of “cash back” a little less rewarding.
The reward program at Shell stations, for instance, offers a 5-cent rebate per gallon of gas. But the discount applies only if you buy at least 45 gallons per month — with a cap at 100 gallons. The max you’ll save: $60 annually. And interest rates on these gas rewards cards can be nearly 25%.
Your better bet: Gas at Costco, which is typically less expensive than neighborhood filling stations. What’s more, paying for that gas with a Costco American Express card nets a 3% reward for the first $3,000 of fuel (the reward drops to 1% if you buy more gasoline than that).
For more money- and gas-saving tips, check out the source link below.
Higher gas prices force drivers to cut back; we offer money-saving tips. [Consumer Reports]