A cash back program specifically tailored to drivers may be one way you can save money at the gas station.
With gas prices rising as fast as they are, anyone who owns a car is thinking hard about the best way to bring down the cost of each visit to the gas station.
Amid Russia’s invasion of Ukraine, the cost of gas was, at $4.52 a gallon on Monday, nearly 50% higher than it was a year ago.
Will A Rewards Credit Card Bring Down Your Gas Bill?
While driving less and combining trips are obvious choices, another way may be a gas rewards credit card.
Like a regular cash back program, this type of card offers points or rewards for every dollar one spends, but is tailored specifically for gas discounts. Similarly-tailored cash back rewards cards already exist for those who fly or order delivery frequently.
A recent analysis by Bankrate looked at the best credit cards for drivers.
The numbers point out that credit cards tied to specific gas stations are not the best option. In other words, don’t be fooled by the flashy “save on gas!” offers you might see at the station.
“These cards are even more forgettable if you ever plan to carry a balance,” the report reads. “The average interest rate of the 22 cards we analyzed was 25.8%, much higher than the average credit card APR of 16.34%.”
Bankrate
Which Credit Card Should I Get, Then?
Instead, drivers are better off seeing what kind of general purpose cards are out there.
One such option is Sam’s Club Mastercard, which offers owners 5% cash back at a range of gas stations — many such programs require drivers to purchase gas only at their stations — for up to $6,000 per year. Food and Sam’s Club purchases are at 3% while all other spending is at 1%.
Costco (COST) – Get Costco Wholesale Corporation Report‘s Costco Anywhere Visa Card by Citi gives owners 4% cash back on gas with an annual limit of $7,000, 3% cash back on eligible travel and dining, 2% cash back on purchases at Costco and 1% cash back on other spending.
While Citibank (C) – Get Citigroup Inc. Report‘s Citi Custom Cash Card is not tailored specifically toward drivers, gas can be chosen as an eligible spending category — that means you’ll receive 5% cash back for each billing cycle to a monthly limit of $500, and 1% cash back on everything else.
“In more normal times, most Americans should spend well below these limits,” reads the report. “[…] But with gas prices skyrocketing and more people returning to the roads for daily commutes and vacations, it’s a good time to seek out as many savings opportunities as possible.”
