A part of the popularity right now relates to how fast gas prices have been rising lately. Over the past few years gas prices have gone up and down significantly, but far more up than down. This means that people are spending more money at gas stations and want to get more for their money.
What Are the Benefits?
Gas rewards cards are much like other rewards credit cards. You spend money, you get rewards. The difference is that you get a higher percent back on your gas purchases, generally around 3-6%. These rewards are generally given as a rebate on your credit card. Sometimes you may be able to get other kinds of rewards.
Sometimes your card may even give you a free tank of gas, just for being a good customer. What you get depends on which card you have.
What's the Cost?
You know nothing in life is free. You can't expect that a credit card company is going to be giving you money back just for the privilege of your business. They must want something.
The cost is most often a higher interest rate. Some may have annual fees as well, but a higher interest rate is more common. An annual fee can mean that you have to spend a fair amount before your rewards beat out what the card is costing you right off the top.
What Should You Look Out For?
When you think you have a card you want to apply for, look carefully at the terms. Sometimes it can be hard to get the best return on your cards. The rebate rate may be written as "up to" 1% for non-gas purchases, for example. The exact rate may vary by how much you use your credit card.
You also need to be aware of card maximums for rewards. If you are a big spender you may find that you come up against your rewards limits.
Are They Worth It?
That depends on you. How do you use your credit cards? If you carry a balance, you'll never buy enough gas for it to be worth the higher interest rate. It's just not possible.
On the other hand, if you rarely or never carry a balance, the interest rate isn't going to matter to you at all. Pay your credit card off and you are getting the rewards without paying extra for the privilege. It's a great deal in that case.
When you make purchases with the Chase Flexible Rewards card, every dollar you spend on eligible purchases grants you one reward point. Accumulated points can be redeemed for merchandise, air travel, hotel stays, car rentals, gift cards and more. Points can even be redeemed for cash, in which 3,500 points translates to a $25 check. However, the points expire after five years, with the maximum amount of points that can be earned within one billing year being 60,000 points. This works out to 5,000 points per billing cycle.
Additionally, the card imposes a reasonable interest rate for purchases and balance transfers with no annual fees required. Unfortunately the card uses the “Two Cycles Average Daily Balance" method of calculating finance charges, which usually means that you will have to pay more if you carry a balance on this card. Nevertheless, the card has a long introductory 12-month interest-free period for purchases or balance transfers (but not for cash advances).
Besides the reward program, the card has the standard plethora of platinum cardholder benefits from Chase including up to $1,000,000 in travel accident insurance, auto rental insurance, fraud protection, purchase protection, various emergency and assistance services and extended warranties on almost all purchases.
For those who qualify, the Chase Flexible Rewards Card can be highly lucrative to own. With such a flexible reward program, this credit card is almost the perfect ‘one size fits all’ reward card. Of course if you don’t pay off the outstanding balance in full each month, the rewards of this card may not outweigh the additional charges you would have to bear.
Both Stephanie Foster & Eric Wasselman are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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