How much do you spend on gas? The average car consumes nearly 750 gallons annually. Wouldn’t it be nice to get a discount on all that fuel?- Make sure the rebate applies at every station
When a gas card is affiliated with a specific station, you will be forced to buy that brand of gas in order to get the rebate. Why confine yourself to just one station? The best gas credit cards are the ones that you can use everywhere. This gives you the ultimate flexibility to choose the cheapest stations and still get a high rebate. - Pay attention to spending caps and tiers
With gas hovering around $4 its not surprising that most cards have caps on the amount of fuel rewards you can earn. This is definitely something to keep in mind when choosing your card. - Find the highest rebate possible
Over the past few years some cards have scaled back their rewards on gas. This page is constantly updated with the best offers.
Top Choice (for a no fee card): American Express Blue Cash Everyday
Not only is this a great gas card, but it also gives high cash back on other categories, too. You may have looked at the Blue Cash before but passed on it because of the reward tiers it previously had (which was a drawback). But guess what? A few months ago AmEx reconfigured the program and now there are no tiers or limits on your rewards!- This card gives you an unlimited 2% cash back at every gas station all year long. If you do the math, that's the equivalent of getting a 7 cent discount per gallon when the price is $3.50/gallon!
- You also get an unlimited 3% cash back at grocery stores and 3% at department stores.
- All other spending earns you a full 1% cash back.
- There are absolutely no tiers, no reward caps, and no gimmicks. This card gives you exactly what they say without any trickery!
- You get a $100 cash bonus for spending $1k in first 3 months (the best promotion you will find for this card!)
Top Choice (for a premium card): AmEx Premier Rewards Gold Card
The AmEx Premier Gold is often overlooked for the gas rewards credit card category, but here’s why you should strongly consider it: you get 2x points on gas but these Membership Rewards points can be worth much more than 2%. I will explain why in a moment.- High reward points: 3x on airfare, 3x for online shopping (through the AmEx Bonus Points Mall), 2x on gasoline, 2x at grocery stores, 1x on everything else. No tiers or caps!
- Recurring yearly bonus: You will receive an extra bonus of 15,000 points every year you spend at least $30k
- Free benefits include roadside assistance (up to 4x per year), travel accident insurance (up to $100,000), automatic extended warranty coverage and protection for lost/stolen/accidental damage on all eligible purchases, and many other valuable perks which will save you money.
- Increase the value of your points. Convert points to miles on over 15 airline frequent flyer programs, almost always on a 1 for 1 basis. No other card issuer can do this! Since many airlines offer roundtrips starting at 25,000 miles, that means your points have the potential to be worth far more than the typical $0.01 each. (Example: Redeeming 25k miles for a ticket that would have normally cost $500 out-of-pocket. In that situation the 2x points you were earning on gas would have been the equivalent of a 4% rebate!).
- Limited-time offer: Your membership fee is waived for one full year (normally a $175 value) plus earn 25,000 bonus points
Chase Freedom Card
This card gives you 5% on gas at least one quarter per year. But guess what? Chase kicked it up for 2012 and is including gas for two quarters, which ranks it among the best gas cards for the year. Not to mention, during any given quarter there are other categories which will also earn you 5% (typically 2 to 4 that qualify).Pros:
- For 2012 you will get 5% cash back on gas during the 1st quarter (Jan thru March) and the 3rd quarter (July thru Sept). Think about it... when combined that's half the year!
- Multiple 5% categories during each quarter. All other purchases net you a full 1% cash back without tiers or caps
- No annual fee
- $100 bonus + 0% intro APR for 15 months (on balance transfers AND purchases!)
- The higher fuel rebate isn't year 'round. But assuming you spent the same amount on gas each quarter, your average gas rebate for 2012 would be 3%... not bad at all!
- The amount of category spending (like gas) that qualifies for the 5% is typically capped at $1,500 per quarter.
Discover More Card
This is by far Discover’s most popular card and operates in a similar fashion as the Chase Freedom mentioned above (but Discover came out with this long before Chase did). Even if you already have the Freedom, this card offers some one-of-a-kind perks.Pros:
- Gives a 5% cashback bonus in rotating categories like gas, hotels, department stores, restaurants, theme parks, electronic stores, and more. For 2012 gas stations are included in 2 out of the 4 quarters!
- Discover has now increased the 5% ceiling! Now you can earn 5% on up to $1,500 in category spending per quarter.
- When you choose gift cards over cash back you get more bang for your buck, sometimes as high as double the value (For example, with Carnival, Celebrity and Norwegian cruise lines, $60 worth of cash back = $120 gift card). This means you can essentially turn your 5% into a 10% rebate.
- You get 5% to 20% at hundreds of popular online stores. This is on top of your normal cash back, too!
- Discover is known for their excellent American-based customer service (no overseas foreigners!)
- No annual fee
- The gas savings are not year 'round, but getting 5% for both the 1st and 3rd quarters is still half the year.
- Like the other Discover card, spending outside the 5% categories is 0.25% for the first $3,000 annually and 1.00% after that. But if you choose gift cards that give you a boost in value, the rebate value on your other purchases can actually average out to be above 1% depending on how much you spend.
American Express TrueEarnings Costco Card
Are you a Costco member? If you are (or if you're willing to pay the $50 membership fee to become one) then this is another great choice for a gas rebate credit card. It gives 3% like the card above, but with this one there is a cap on the 3% (fortunately it's high enough for most people).Pros:
- You earn 3% on the first $3,000 spent at gas stations every year. After that you still get 1%.
- You also earn an unlimited 2% on travel and 2% at restaurants.
- All other spending will get you 1% cash back, including purchases at Costco
- The only drawback is that you must be a Costco member to get this card. If you are not a member and would like to join, fortunately you can easily join for just $50 during the credit card application process (if needed). Since the credit card itself has no annual fee, paying only $50 for a Costco membership to earn these high credit card rewards is actually a good deal when you think about.
Pentagon Federal Credit Union Cashback Rewards Card
This card offers 5% on gas at all stations without any reward caps. Despite that, there are a couple reasons it isn’t ranked as the #1 best gas credit card. (1) you need to be a PenFed credit union member to get it and (2) you need to have a ridiculously amazing credit history (see below).Pros:
- You get a full 5% cash back when you pay at the pump for gas. You get this at every station and there are no caps on how much 5% cash back you can earn.
- Your rewards are credited to your billing statement each month.
- There is no annual fee
- Anyone can join PenFed! You can qualify for free by being directly affiliated (or indirectly through relative/housemate) with an eligible branch of the U.S. military/govt. Or you can qualify by belonging to various organizations/associations. If you don’t qualify under any of those, you can make a one-time charitable donation for as little as $15 to qualify.
- The biggest drawback is that PenFed is ultra-strict with credit approval. The application process typically includes mailing/faxing proof of your income and having an absolute stellar credit history. Even those with FICOs in the high 700s routinely get denied.
- On all other spending you only get a 0.0025% (1/4%) cash rebate
- As mentioned you do need to be a PenFed member. Even though this is listed under the “cons” it really isn’t one, because this credit union has some of the best interest rates in the nation for loans (I financed my used car through them). Plus, it only takes a minute to become a member and you can do so during the credit card application process.
Discover Open Road Card
Years ago this was the most popular card for gas because it previously offered 5%. When oil prices shot up back in 2008, Discover decided to reduce the rebate amount. Although the rewards program isn't as generous as in the past, it's still a great choice if you want something with no annual fee that gives above-average on fuel purchases.Pros:
- You earn a full 2% cash back automatically at all gas stations and restaurants (up to $250 spent each month)
- Discover has the best online shopping program among all the credit card companies. You can get an extra 5% to 20% at over 200 popular retailers.
- No annual fee
- The rebate 2% on gas and restaurants is not unlimited.
- For other purchases there is a tiered cash back structure. You get 0.25% on up to $3,000 in annual spending and an unlimited 1.00% cash back on all spending above that amount. However on the bright side, if you redeem your cash back for gift cards instead, you can increase the value you get (like a $25 restaurant gift card that costs only $20 worth of cash back).
Most gas cards offer the option of cash back in the form of a check or statement credit. They also usually allow it to be converted into gift cards. Most require a minimum accumulation of rewards before they can be redeemed – i.e. $25 or $50. Fortunately with 5% cash back, those amounts can be accumulated very quickly!
As mentioned above, the best cards are the ones that can be used at any station. One of the problems with those that are brand specific (like the BP, Citgo, Chevron, Exxon Mobil, and 76 gas station credit cards) is that those places are often times more expensive since they’re “name brand” gas. You're far better off with a card that can be used universally. That way you can seek out the stations with the lowest price and those that are most convenient for you.
The bottom line is that the amount of money the average American spends on gasoline every year is substantial. Unfortunately it’s not possible to control the price of gas at the pump, but using a gas credit card will allow you to save a bit of money every time you fill up.
