As you head off to the nearest gas station for your weekly gas pump, you realize that the rising prices of gas are slowly affecting your monthly budget already. Like any hard working individual, you want to look for ways to save more money. You leaf through the pages of magazines and newspapers to cut out discount coupons and look at credit cards that offer rewards. Now, since you regularly pump gas on your car, maybe a gas credit card is a good option you can consider.

A gas credit card works under a simple concept. The more you use it to purchase gas, the more you save money. How is it possible? Each time you fill up gas to your tank, you get a certain percentage back for your amount of purchase. Gas stations normally give 1% to 10% rebate on the dollar you spend. With this very good offer, even if you have cash on hand, you would rather just swipe your card because you will save more than spending your cash.

With this kind of deal, you are probably wondering how credit card companies earn when they give rebates. To explain it simply, they are relying on consumers who will not pay their bills in full, or who will not pay at all. Every time payment is deferred, the outstanding balance on your bill incurs an interest. If you fail to settle on time or do not pay at all, you will be charged a late payment fee on your next billing. These interest rates are pretty high especially if the base amount is high also.

Knowing this, you as a consumer should be responsible in controlling your own spending habits. The rewards of gas credit card may be alluring but make sure that once your billing statements arrive at your doorstep, you will be able to settle them in full. Otherwise, you have not really saved at all because of the interest charges you will incur on your next bill.

If you want to apply for a gas card, look for a credit card company affiliated with a gas station of your choice. The idea here is that you will maximize the benefits of your card if you use it often to a gas station you patronize. Also check if they have many branches around. There are also gas cards that offer rewards to any gas station, but these types of card generally offer a lower percentage of rewards.

Check your lifestyle. If you drive daily to work and filling up gas at least twice a week, it is a good decision to get a gas credit card.

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