Trying to squeeze more out of your dollar at the gas pump is harder, but not hopeless. In fact using plastic to buy gas can make the process a little more rewarding. When you gotta have gas, you gotta pay the price, and paying with some credit cards may squeeze a little of that gas money back into your pocket.
The Blue Card from American Express is one of them. You get money back on your purchase right away, but as Beverly Anderson of American Express explains, "The value really kicks in when you hit $6,500 You get 5% off every gallon you purchase." That means 5% of your total shows up as a credit on your statement.
Chase Visa or MasterCard offers a point system that can be used specifically for BP gas. "Tiny credit card disc. When you take it to a BP station, you get 5% on that purchase," said Anderson Consumers who want to partake of these credit cards perks should know that nothing is really free, after all. You have to buy something in order to get money back."
And that may not be worth the promised rebate in some cases, according to Money Magazine's Amanda Gengler. Gengler said, "One of the biggest pitfalls is if you carry a balance, these rewards cards usually have higher interest rates, and the savings may be less than what you're paying in interest." That's just one of the reasons checking out the fine print is important. Some cards may even cap the amount you can receive in the rebates.
On the other hand, it's worth doing some homework on whether your bank-issued or gasoline credit card will help you out a little bit at the pump. To get more for your money, you have to compare the benefits of a rewards program versus a lower interest rate. If you pay your balance off each month, the rewards can give you a little cash back. If you carry a balance, look for the lowest interest rate you can find.