Rewards of cash back for gas

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Rewards of cash back for gas

Postby JMR » Thu Feb 27, 2014 9:49 am

I have a question for you guys. With the cash back on gas (3% BCP, 2% BCE, 5% rotating Freedom or IT, Sallie Mae 5%, etc). Is this really saving as much money as we think. Where I'm located at gas stations charge and extra 10 cents for using credit vs paying in cash. This is dwindling our cash back benefits. Say for example gas is $4 and your card is 3% thats .12 cents a gallon, sure that is more than the charge but is it really that significant and worth it. Especially if you are paying an AF for those cards. I'm not sure if it is like that for gas stations everywhere but here it is. What is your guy's opinion on the subject?

Citi AAdvantage Platinum Select- $5000 (3/15)
American Express Gold- NPSL (3/15)
Chase Freedom- $1200 (3/15)
Nordstrom- $1500 (9/14)
Discover IT- $1000 (2/14)

TCL: $8700

FICO (TU)- 716 (3/15)

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Postby takeshi » Thu Feb 27, 2014 12:32 pm

Worth is always subjective. Cash is a nonstarter for me so it's not relevant. I'd be using a card no matter what. The 5% I get back beats what my other cards offer.

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Postby whit » Thu Feb 27, 2014 3:15 pm

That's why when I'm buying jewelry if I can get them to knock off about 10% to take care of "taxes" I'll pay cash

Better to save ten percent and pay cash then get 1% cashback

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Postby rockyrock » Thu Feb 27, 2014 10:48 pm

I have recently run into this problem of dif prices for cash and credit. Some places like AM/PM don't even take credit!
American Express (2005): Premier Rewards Gold & Blue Cash Preferred
Chase: Freedom & UA Club USAA: Signature Visa & American Express
Discover it Bank of Hawaii Hawaiian Airlines WEMC Synchrony Sam's MC
Navy FCU Platinum Visa Citi Double Cash & AT&T Access MC

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Postby Xorand » Fri Feb 28, 2014 10:57 am

Since we travel full-time, I've been using my BCP to offset the difference in truck stop fuel prices compared to smaller stations' prices. When we are on the road with our travel trailer in tow, truck stops are usually the only place we can get in and out easily or safely. It sucks that they charge a 10-15 cent premium on diesel over smaller stations, but my 3% back on the BCP (or currently 5% back on my Chase Freedom) help to offset that.

With that said, we do try to fill up the truck while not hooked to the trailer as much as possible, to increase price savings.
AmEx - Platinum (NPSL) , Blue Cash Preferred ($19,000), Gold Delta Skymiles ($8,500)
Chase - Sapphire Preferred ($14,000), Disney ($11,500), ($9,000), Freedom ($8,000)
CapOne - QuickSilver ($7,250) / Platinum Rewards ($7,250)

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Postby samhradh » Fri Feb 28, 2014 8:06 pm

Gas spend in 2013: $780.30 (AmEx BCE) + $47.38 (Chase Freedom) = $827.68

Rewards for gas spend in 2013: $15 (AmEx Special Offers statement credit) + $15.30 (BCE 2%) + $2.36 (Freedom 5%) = $32.66

Annual fees in 2013 = $0

Determining whether it's "worth it" to use a credit card is totally subjective. All told, I got about 3.9% cash back for putting all of my gas spend on credit cards. This year I will have the Freedom 5% categories for a full year and my cash back % will increase. For me the benefits include better tracking of my finances, time saved by not going to an ATM and waiting in line to pay cash at the station, peace of mind in not worrying about losing cash, and the obvious benefit of cash back. Using your example I am paying .02 cents/gallon more but even on my limited budget I find that the benefits of cards outweigh that savings.
Citi Forward ($10.1K), AmEx Blue Cash Everyday ($30K), Chase Freedom ($12.4K), Discover it ($5.5K), Barclaycard Arrival ($12.5K), L.L. Bean Visa ($5K). FICO 806 (TU), 812 (EQ), 806 (EX).

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