3 Factors That Can Ruin your Gas Reward Credit Card Experience

by : muellerduran

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.

1. 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.