7 Tips For Using Rewards Credit Cards

Rewards credit cards are constantly improving because it is how the credit card companies compete with one another to gain new customers and to keep the ones they have.

What you miss in the fine print might cause your rewards card to reward the credit card lender instead of your wallet! While all rewards credit cards sound great at first glance, it???s important to do a little in depth research on each before you select one.

Rewards cards don???t reward if you carry a balance from month to month. When you use a rewards credit card, it???s typical for the card to have a higher interest rate than a non-rewards credit card. If you are carrying a balance from month to month instead of paying it off at the end of each month, you???re not likely to earn anything from the rewards after you pay out the interest.

What does ???Up to??? mean? You know you???ve seen it. Rewards credit cards that advertise cash back ???up to??? 1%. That means you might actually earn much less than 1% cash back, until you reach very high levels of spending on your card.

How much are cardholders paying for the rewards? Most credit card shoppers are comparing the points earned on various rewards cards, or the gift cards you receive. The best thing you can do is figure out how much those points or rewards are costing the cardholder. If you have to spend $10,000 in a year to get a $50 gift card- is it really worth it?

Frequent flyer miles are great rewards programs for people who charge a lot of purchases on their credit cards. If you don???t, you???ll be waiting years before you can qualify for your free flight. If you???re an occasional spender with credit cards, you should probably look at credit cards that offer rewards at lower levels of spending in order to take advantage of rewards.

Understand what a gas station is. Gas rewards credit cards are extremely popular now that the price of gas is ever-increasing. They???re quite generous, too, considering many will give up to 5% back on all gasoline purchases. But the only way to get the cash back on gas purchases on most of these cards is if you make your purchase at a ???real gas station???. Supermarkets, wholesale clubs or other locations may not fit the card???s guidelines and you won???t earn as much cash back.

It all depends how much you use your credit card. However, if your rewards card offers double points or double frequent flyer miles, it might be worth the annual fee. If you have to spend $3000 before you earn any rewards.

Usually. Annual fees will defeat the purpose of a rewards card.

Also keep in mind that some rewards expire if you don???t use them within a specific period of time. If your gas card gives you 5% cash back on gas purchases but it stops paying you when you???ve reached $300 in gas purchases, then look at all the rewards you???ve wasted because of their maximum limitations. Make sure you understand what the maximum earnings for rewards are, particularly if you are someone who uses credit cards often. Rewards have their limits.

Reap Rewards With The Best Gas Rebate Credit Card

Sure, there is probably a gas station or two offering gas prices lower than most but chances are, you are not going to drive all the way across town just to buy gas that is cheaper by a mere few cents. Gas prices are always on the rise, and there seems to be no escaping it.

They have partnered with gas companies with one goal in mind: to create the best gas rebate credit card. Fortunately, leading credit card companies are now capitalizing on this problem.

How It Works
The best rebate credit cards work in a such a way that cardholders receive a certain percentage of the gas purchases they charge to their credit card. This mechanism follows the same principle as most cash back rebate programs. However, while most cash back cards send rebate checks once a year, the best gas rebate credit cards apply credit each month, allowing consumers better access to their savings.

Station-Specific Gas Rebate Credit Cards
Most of the best gas rebate credit cards have affiliate gas brands. If you frequent a specific gas station, a station-specific card might be the best gas rebate credit card for you. You can earn rebates of up to 3% to 5% when you use this card at certain gas stations. These rebate rates are often only for gas purchases. Some stations, however, allow you to earn the same rates with any purchase. Other purchases from selected restaurants, supermarkets, drugstores, and retailers may earn you rebates of 1%.

A good station-specific card is Chase BP Visa Rewards Card. This is one of the best gas rebate credit cards because it pays a 5% rebate on all purchases made at BP Amaco stations. Dining and travel purchases earn 2%.

Any Station Gas Rebate Credit Cards
If you don't have a specific gas brand in mind, the best gas rebate credit card for you would be a credit card that allows you to earn rebates in any station anytime! Many financial institutions are now offering this type of rebate card. The Chase PerfectCard Mastercard is a good example. This card offers a 3% cash rebate on gas purchases. An even better option is the Discover Gas Card. It pays 5% rebates for the first $1,200 in gas purchases every year. Rebates are offered in check or gift card in $20 increments.

Cash Back Credit Cards as Gas Rebate Credit Cards
Most cash back credit cards make the best gas rebate credit cards. This is because most cash back cards pay rebates of 2% to 5% on purchases made from supermarkets, drugstores, and gas stations. American Express' Blue Cash pays rebates of up to 5%, but only after you spend $6,500 annually. The Citi Dividend Platinum Select Card pays 2% rebates on gas purchases.

For example, even if the Blue Cash and the Discover Gas Card pay 5% in rebates, there are still conditions that need to be met. Each gas rebate card has its own limitations. Interest rates are known to be higher, however. Some of the best gas rebate credit cards don't charge an annual fee.

With so many reward cards in the market today, don't settle for less than the best gas rebate credit. In choosing rebate cards, take the time to compare and consider your options.