Apparently, having a credit card is advantageous if used properly and with discipline. The sad thing with owning credit cards is that people tend to abuse their purchasing power using their cards, which only leads to extreme credit card debt.
On a positive note, being a holder of credit card can save you in many ways. One good example is using it for gas purchases. Just think of the convenience you get when you simply need to swipe that card on the gas pump. But of course, this has to be coupled with proper caution and awareness of the possible consequences, although it is beneficial in general.
Gas Purchases: Cash or Credit Card?
Everyone seems to be using less of cash and more on cards in their purchases. Even vehicle owners opt to purchase fuel using a credit card. You basically pay the same amount as when you do it with cash, but with more rewards this time. Many credit card companies partner with gas stations for perks such as rebates or cashback for every gasoline purchase. Credit card specials and promos would run in a monthly or quarterly basis and must not be missed.
Rebates from Gas Purchases
Credit cards or gas cards are efficient in saving money at gas stations. In most cases, using credit cards for gas purchases saves you money through rebates or cashback rewards from 3% up to 5%, depending on your credit card company. These rebates are collated and added up until you get a good amount of cashback savings in due time. You can claim your rebates from your credit card firm in the form of a check.
Rebates in various purchases including gas purchases attract credit card holders. For example, Chase’s BP Visa provides 5% rebates on all fuel purchases at any BP gas station. Any car owner would not want to miss such money-saving opportunity.
Tips to Using a Credit Card in Gas Stations
Exercising a good amount of discipline in using your credit card for gas purchases can help a lot in terms of finances. Here are smart tips to guide you:
• Always pay monthly card bills in full so as not to be billed with finance charges. If you fail to settle the full amount each month, your increasing finance charges will only outweigh the perks and advantages of using your card for gas expense.
• You might want to consider getting a dedicated gas card for fuel expense only instead of your regular credit card.
• Credit cards that do not collect an annual fee and offer high cash back rewards are best used for gas purchases.
• Combine your credit card with saving perks such as loyalty discounts through accredited vendors and stores.