Rising gas prices are constantly consuming a large part of our budget,
and in an effort to limit the effect of this expense people take refuge in gas
reward credit card. By, simply applying to one they feel that they can save a
lot on gas purchases by way of cashback and other benefits. Are they correct?
No, because there are many catches to every gas reward credit card, and it is
better if a credit card holder knows them. In this article we take a look at
three factors that can ruin your gas reward credit card experience.
Not being able to repay the balances every month
If you are not in a condition to repay the balances fully every month, the
credit card company will simply don't give you any reward, be it gas, low APR,
or any other. The most important condition they keep is that a credit card
holder should be able to repay the balances in full. The only situation that
saves money for you, if you falter on repayments, is to get a credit card
with the lowest possible regular APR.
2. Not using the right partner to fill your tank
Credit card companies have special tie-ups with filling stations and gas
providers. They mention it clearly in their offer document. If you keep on
taking gas from every single filling station except the preferred partner, you
get nothing! Choosing your filling station matters.
3. Not spending the right amount to get maximum benefit
The credit card offer says 5% cashback on gas stations*, but does it
translate into 5% savings on all gas purchases? No, there is an asterisk(*)
after the offer, directing you to check the fine prints, which says that if you
spend something between 20,000 -40,000 per year on gas purchases from a
particular filling station only then you get 5% cashback, if you spend less the
cashback is also less and if you spend more than this limit the cashback
percentage will also reduce. See, how 5% doesn't mean 5% on all purchases.
Every reward cards has limits, which should be understood carefully so
that the reward card gives the maximum benefit. Gas reward credit cards are no
exception. A credit card holder has to understand the intricacies and beat the
credit card companies at their own game.