Will a Gas Rewards Card Buffer Rising Costs?
Average gas prices are $3.88/gallon, according to MSNBC, and it doesn't look like they're coming down soon. Filling up the tank is already expensive and the pinch to wallets will likely get worse before it gets better.
A gas rewards credit card may offset a little bit of the cost of gas, if you have a good rewards rate and you manage your credit well.
Consider this: Filling up mid-sized SUV these days costs around $80/tank. If you fill up once a week, you spend $320/month in gas. With a 1% cashback rewards card, you'd earn $3.20/month or $38.40/year in cash. A 5% rewards card would give you $16/month or $192/year.
You're going to spend the same amount in gas whether you get cashback rewards or not, so you might as well get the rewards if you can.
Keep in mind, rewards credit cards typically have high interest rates. If you're not paying off your balance each month, the interest you pay voids any rewards you receive.
More on Rewards Credit Cards- 7 Things That Make a Rewards Card Unrewarding
- Don't Let a Rewards Card Lead You to Debt
- How to Choose a Rewards Credit Card
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Comments
Yes. It is true that Credit card have high interest rates.
Unfortunately, people may resort to using credit cards even more now that gas prices are so high. I say stay away from them
I would rather just stay away from using a credit card to pay for gas. Gas prices have gone up but that doesn’t mean we should resort to a credit card to pay for it. Those cash back reward programs are a gimmick.