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How much can I save with a gas credit card?

Americans commuting by car, orweekend of July 4 

But Wednesday Even if thenational averageof regular gas is $ 4.87 per gallon, there are ways for drivers to save money with pumps.

Indeed, Americans are looking for ways to fill it at less cost. Internet searches for fuel and gas cards are growing rapidly in parallel with soaring gas prices, according to a research note from the Bank of America Global Research. 

Several different types of gas cards, including gas station-issued credit cards from Chevron, Shell, Texaco, and other chains. there is. Fuel discounts and rewards. Some common credit cards from payment companies such as American Express and Visa offer valuable cashback and points when cardholders spend money on gas.

"Assuming you're paying in full and avoiding interest in your statement, it's obviously great to get paid from your gas card," said BankRate.com's senior credit card analyst. Ted Rothman said. "But the best gas cards may not come to mind first."

According to Rothman, consumers may be drawn to the card from the gas station itself, like a shell. It doesn't, but it doesn't tend to offer strong rewards. Cardholders typically earn only 5-10 cents per gallon of gas, and card interest rates tend to be higher.

"I don't want to build up continuous debt, so if your credit card isn't very disciplined, it might be best to use cash.Credit card debt Good, especially when interest rates are high " , said David Chang, credit card expert at The Ascent.

Branded credit cards don't earn rewards for other brands, so it only makes sense if you live right next to a shell station or texaco station where you buy most of the gas. pumps.

"If you live right next to a shell station and drive a lot, you have a commute, and if the shell is always full, a gas card can help," Chan said. I am saying. 

What kind of card should I get?

Due to the high price of gas, a percentage discount is worth more than reducing the cost per gallon of gas by a few cents. 

Aim for a card that offers 5% cash back. "Percents make more sense," Rothman said. 

If the gas price is $ 5 per gallon, a 5% cashback card will give you a 25 cent discount per gallon, while a gas station card will give you a 5 cent or 10 cent discount. It will be a discount. 

For example, Sam's Club Mastercard offers 5% cash back on gas worth up to $ 6,000 purchased at a gas station. Costco Anywhere Visa offers customers 4% cash back on gas purchases worth up to $ 7,000, as well as Costco. 

In 2019, the average American household spends about $ 2,000 on gas, according to the Bureau of Labor Statistics . According to Rothman's calculations, gas prices are about 50% higher than that year, and a 5% cashback reward rate saves $ 157 a year on gas for the average American family. This is equivalent to several free replenishments a year. 

"You won't get rich, but the point of these cashback cards is to get something for free," he said. "You would have been spending money anyway, and you can avoid interest by paying off your balance in full. It's like a kind of free money."

Get a new card is needed.

If you spend a lot of money on fuel, it may be worth getting a new card to save money on gas.

If you aren't spending a lot of money, one of your existing credit cards may already be offering 2% to 3% gas cashback. This may be enough.

For example, American Express Blue Cash offers 3% cash back at US gas stations and can be used as statement credits at the end of the month. 

"It's not the top of the market, but nothing beats it," Rothman said.

Stacking discounts

To save even more, combine your rewards card with other savings strategies such as downloading a gas station payment app. Branded apps typically offer a discount of 5-10 cents per gallon when you pay from the app using the card of your choice. 

"When you use the payment app, you'll see that the price you pay goes down as soon as it's full," Rothman said.

This technique lowers the price of gas per gallon at the time of sale and at the same time earns rewards after the fact. These rebates will appear as credits on your monthly statement, or as direct deposits or checks. 

According to GasBuddy analyst Patrick Dehan, it's a mistake not to take advantage of the fuel saving program at all.

"If you just go to the station and swipe your card, you usually pay more than you need," he said. 

Reduce mileage

Simply reducing driving or increasing efficiency is also a great way to save on gas bills. According to 

Chan, drivers should aim to reduce their driving distance by 75%.

His secret is to do errands at once instead of making multiple trips, and to make a light trip by removing excess weight from the car or cargo hatch from the top of the car or truck. And it includes not idling. 

Of course,You can save money by not having to go to the office every day for remote work. "The best way to save money is to reduce driving. If you're not spending money on gas, working at home can behave like a salary increase," Chan said. 

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