Gas reward credit cards come in two main forms:

1. Cash back for gas purchases.
2. Direct discounts on gas purchases.

Both of these types of credit cards have advantages, but it is important to realize that you need to be careful with these purchases, since carrying a balance could mean that the interest you pay completely destroys the value of the reward. So it is a good idea to do your homework, and to do your best to pay off your credit card every month.

Gas stations issuing reward credit cards

Most of the specific gas reward credit cards are being issued by gas stations themselves. These card issuers are hoping that you will buy gas from their businesses, and that rewards and discounts will turn you into a loyal customer. It is important that you carefully consider your options, and compare programs offered by different gas stations.

It is also a good idea to compare gas reward credit cards with other, more standard rewards cards. Many general cards include gas purchases in their rewards schemes, so it makes sense to try and combine all your purchases together to maximize your rewards overall. Some items to consider when deciding on any rewards card – including gas reward credit cards – include:

• Interest rate.
• What kinds of purchases qualify for the rewards points.
• Whether you can use the credit card at a variety of businesses.
• Fees and other terms and conditions.
• Flexibility of rewards options.

Cash back on gas purchases

If you get a gas rewards credit card exclusive to one gasoline company, that could mean that you only get cash back on gas purchases at a certain station. That can limit your ability to get cash back. Check with the issuer to see if it is a general card for use everywhere, and what sorts of purchases qualify. If you only get cash back on gas purchases, it may take a while to see the benefit – and you could be using a different card that rewards you for gas purchases on top of other buying decisions.

Make sure that you try to get a gas reward credit card that can be used at other businesses. A gas station that is issuing a card through a major company and that will be accepted at multiple other places – from department stores to grocery stores – is a much better option.

Discounts on gas purchases

Another popular credit card is the discount card. Some gas reward credit cards, on top of offering a rewards program, will give you a discount for using their card at their gas stations. This can be beneficial, since you get an upfront discount on gas, plus you earn points for cash back or other rewards down the road.

Other gas stations that issue cards are not as generous, however. Some of them let you build up points, and then they send a voucher or coupon for a discount or for a certain amount of free gas. Watch out for these types of gas reward credit cards. While they provide you with something of value, you may not be maximizing your potential in the area of rewards and discounts.

Other gas reward programs

Since gas is such a big concern right now, it is no surprise that there are other programs available. It is not necessary to get a credit card to take advantage of rewards programs for gas. One example is that of grocery stores. Many grocery stores have gas stations in their parking lots now. At some stores, you can get a discount on gas depending on how much your grocery bill comes to. There are similar programs at other stores. Look around to see what kinds of savings and programs are available beyond credit cards.

Right now there is huge interest in saving money on gas. And one of the most visible ways to do it is with a gas reward credit card. However, it is important that you carefully evaluate your situation and consider the pros and cons. In many cases getting reward credit cards based exclusively through one type of outlet will only serve to fragment your effort.