Use Gas Credit Cards Carefully

This type of credit card works exactly the same as any other card in most instances, however when purchasing gasoline the card offers a certain reward in return. Many offer up to 5% cash back, while others have points or even free gas.There are many things you must keep in mind when choosing a gasoline credit card. The first of which is not all rewards cards offer cash back. Many offer shopping discounts or merchandise for making purchases. If you are looking for this merchandise, then you can actually get more value out of your credit card because rewards programs tend to offer more back when cash is not involved. If the point of this card is too save you money however, cash back is the way to go.Be sure not to limit yourself to the point that you cannot accumulate rewards from your credit card. Some card offers are limited to which gas stations you can make purchases at, while others offer rebates for a limited time or in a limited area. If you make purchases within these very specific limitations, you can save some money. If however you get the wrong offer and live or travel to an area without the correct stations, then you are out of luck. The more limited the offer, generally the better the return, so if you can use your card within the specified limitations it is possible you can create more value for yourself.Credit cards will cost you money if you carry a balance, and gasoline credit cards are no different. If you are getting 5% cash back on your rebate card, it can look pretty good until you carry a balance that incurs a 12.5% interest fee. Now the cash back is completely nullified, and the card is costing you money. If paid off every month however, these gas cards can be a real savings, especially in today’s economy where gas prices are through the roof.At the end of the day the spending habits of the consumer will decide if a credit card is right for them. The trick is to be careful, research all your options, and get the most value from the credit card you choose.