Top Five - Gasoline Reward Credit Cards Review

Gas prices are soaring all over the United States and many consumers are looking for any means possible to reduce the cost of gasoline, even if the reduction is only a small amount. Many grocery store chains offer immediate discounts of 10 cents per gallon at their own gas pumps provided a minimum amount of grocery purchases have been made. This 10 cent discount is better than nothing, but in percentage terms, it is not very valuable any more, not with the cost per gallon well over $3.00 is most every city in the United States.

For those looking for another way to save money on gasoline, one of the options to consider is a gasoline credit card. There are several available, and most of them are directly affiliated with a specific gasoline company. Let's take a look at some of the credit card options available for those who want to save a little cash at the gas pump:

5. Chase Speedway SuperAmerica MasterCard: No annual fee and a 5 percent rebate are among the features of this gasoline credit card, with a 1 percent rebate rewarded for any purchase made at anyplace other than Speedway SuperAmerica. The rebate system here works a little differently, with Speedy Reward Points earned with each use of the card. Incentives with this credit card include 10,000 Speedy Reward Points after the card is used one time- good enough to receive merchandise worth about $12. The over the limit fee with the Chase Speedway SuperAmerican Visa is $35 and the late fee varies from $15 to $39, based on balance owed.

4. Chase Marathon Platinum MasterCard: This gasoline credit card carries no annual fee and offers a 5 percent rebate on gasoline purchases made at Marathon. Non- gasoline purchases can be made and they receive a 1 percent discount. Incentives include zero APR on purchases for the first few months and zero APR for six months on balance transfer. Fees include a $39 late fee and $39 over the limit fee.

3. Chase BP Rewards Visa: With the BP Rewards Visa, cardholders receive a 5 percent rebate off BP purchases (gasoline and otherwise); 2 percent rebate off dining and travel purchases; and 1 percent rebate on all other purchases. Incentives include double rebates for the first two months, and a low APR that is currently between 12 and 13 percent. A rebate BP card worth $25 is mailed to the cardholder as soon as the rebates reach the $25 level. Late fees are $39 and the over the limit fee is also $39.

2. Citibank Shell MasterCard: This credit card offers cardholders a 5 percent discount off gasoline purchases at Shell and a 1 percent discount off everything else. Incentives include zero APR on balance transfers for six months, followed by an APR that is a little lower than most other gasoline credit cards. The late fee on this card is $39 and the over the limit fee is $35.

1. Discover Open Road Card: Discover is known for offering cash back, so it should come as no surprise that the folks at Discover would offer a gasoline rebate credit card. This card offers a 5 percent rebate at any gasoline retailer; a 5 percent rebate on auto maintenance; rebates that range from 0.25 percent to 1.00 percent on other purchases (based on how much you purchase using the Discover Card in one year); and a double cash back offer if cardholders select to receive merchandise rewards from one of Discover's partners. The 5 percent rebate on the gasoline and maintenance is limited to the first $1,200 in purchases. Over the limit fees range from $15 to $39 and late charges range between $19 and $39; both based on the balance level on the card at the time.

Gasoline Credit Card Commentary:

Gasoline credit cards are growing in popularity and the reasons should be obvious. With oil topping $100 per barrel and gasoline at record price levels in every location in the United Sates, consumers naturally are seeking ways to cut this expense down to size.

Gasoline rebate credit cards are no different from most other reward cards with one exception: The size of the rebate. With the typical reward card, rebates are limited to only 1 or 2 percent of purchases. But as you can see with the above credit card offers, the rebates are much better for gasoline credit cards; with offers up to five percent and double rebates in some instances, based on special introductory offers.

The majority of gasoline credit cards offer the highest rebate level only to purchases made at one specific gasoline retailer. Shell, BP, Speedway, and Marathon are only a few of the credit cards offered by specific outlets and there are countless others. I selected the offers above because their rebates are in the neighborhood of five percent (better than most) and because some of them offer a few extras, like the rewarding of Speedy Points with the Chase Speedway Superamerica MasterCard and the 2 percent rebate offered by BP on travel purchases.

The winner in the gasoline credit card war has to be the Discover Open Road Credit Card for one obvious reason: Consumers get the rebate at any gasoline retailer. They are not limited to Shell, BP, or any other specific gas station. Consumers can go anywhere and get the rebate, and the rebate also applies to automotive maintenance. The only disadvantage of the Discover Open Road Credit Card is that the five percent rebate is limited to the first $1,200 spent in a given year. Generally, other gasoline credit cards do not have any limits.

Gasoline credit cards can be used for any purchase, but like with any reward credit card, their discounts are useless if the cardholder isn't disciplined and doesn't strive to pay off the full balance as quickly as possible. If balances are carried from month to month, the discount is quickly negated. And going over the limit and/or paying late fees can immediately wipe out any discounts received for the year.

Bottom Line Viewpoint:

With the high price of gasoline, it is perfectly understandable that consumers want to find ways to save a little money. Finding ways to eliminate driving is the first step toward saving money on gasoline, and another good step is to purchase a more fuel- efficient vehicle. Gasoline rebate credit cards are another option and while these cards can end up costing even more in the long run if the balance isn't paid off quickly, they still offer a means to reduce the cost of gasoline and they are certainly superior to using a non- reward card for the purchase of gasoline. Even if the bottom line net savings is only a few percentage points, it is still better than nothing at all.