As prices creep toward $4 a gallon, a credit card that refunds a percentage of your gas purchases becomes more enticing. But don't be seduced into thinking a rebate will lessen your pain at the pump in a major way. Many cards cap rebates, and some rebates are tiered so that you earn the top amount only for a portion of what you spend.

And even though interest rates have fallen like stones, rates on gas-card debt remain notoriously high -- up to 21%. So as summer kicks off, prepare to make the most of your credit cards at the pump.

Look for an introductory rate that you can milk this summer. The Chase PerfectCard gives you 6% on gas at any station for 90 days, with a maximum rebate of $30 per month. The BP Visa offers 10% at BP stations only, but throws in 4% on travel and dining expenses, including car rental and hotel stays; the introductory period lasts only 60 days.

Chase caps its gas rebate at $15 per month after the first 90 days; BP's card has no cap. With either card, when the introductory period runs out, you will probably be able to find better credit-card deals elsewhere.

One of the most generous credit cards for gas purchases is the Pentagon Federal Credit Union Platinum Gas Cash Rewards Visa. (If you're not connected to the military, you can become a credit-union member by joining the National Military Family Association for $20 at www.nmfa.org.) The card rewards users with 5% on gas purchases, 2% on groceries and 1.25% on everything else.

The Discover Open Road card rebates 5% on gas and routine auto maintenance up to $1,200 a year.

READER COMMENTS

Post a comment

Hide comment form

 | 

Read all comments (8)

Read recent comments

---

Permission to post your comment is assumed when you submit it. The name you provide will be used to identify your post, and NOT your e-mail address. We reserve the right to excerpt or edit for clarity any posted comments.
View our full privacy policy

Name:

E-mail:

Comment:

POSTED BY: Grad Writer (June 04, 2008 03:28 PM)
...the Discover More card offers a 0% intro purchase APR until December 2008 *and* 5% cash back on gas/restaurant/travel/etc. purchases. Worth looking into.

POSTED BY: Grad Writer (June 04, 2008 06:19 PM)
Other cards with low APRs *and* rewards can be found at the comparison engine at CardHub.com -- I found seven that suited my needs.

POSTED BY: Miley-Cyrus-Fan (August 01, 2008 12:42 PM)
Hmm.. thank you very much. Useful information

POSTED BY: Janedopler (August 03, 2008 02:54 PM)
Cool. It took almost a day to find this info. Thanks! Good job. :)

POSTED BY: chris (September 13, 2008 10:13 PM)
I personally recommend the AMEX Blue Cash. If you spend over $15,000 a year and pay off your balance each month on your card the rewards with this card can't be beat

POSTED BY: Brian (October 14, 2008 08:29 PM)
The best deal that I've found is Amex Blue Cash card -- pays 5% back on gas, groceries, prescriptions and 1.5% back on everything else. They do not limit how much you can get back. I received a $1400 credit this year. I just searched, there's a bunch of cash rebate cards, including the Blue Cash, at www.cash-back-cards.net

POSTED BY: Carol (October 31, 2008 08:22 AM)
Is there an annual fee on the AMEX blue cash card?

POSTED BY: Steve Goldstein (November 26, 2008 12:39 PM)
There is no fee for the Amex Blue card.

MORE: Kiplinger.com | Your Money | Credit & Money Management | Magazine

TOOLS:   E-Mail Article  |  Print Article  |  Reprint Article  |  Content Sales

E-MAIL ALERTS: Keep up-to-date with the latest Kiplinger has to offer

SAVE, SHARE & DISCUSS:    |   |   |   |   |   |   |   

ADD HEADLINES: