The Sun's Financial Diary

As crude oil went over $110 a barrel, gasoline prices are also surging. According to GasBuddy.com, (BTW, a good site to find the cheapest gas in your area) the national average price of regular gas is $3.257 per gallon. Though New Jersey has the lowest gas prices in the nation, filling up our cars every week becomes more and more expensive. Both my wife and I have to drive to work everyday and we spent nearly $80 every week on gas. So far we haven’t reached the point that we have to change our plan because of the high gas price, or cut down spending on other items as fuel costs get bigger and bigger, but we do want to reduce our gas bills.

In addition to finding stations in our area that sell gas at a lower price, we also take advantage of the cash rewards offered by our credit cards to get a little bit back on what we have to buy. We are both credit card person and paying gas with credit cards is almost like a no brainer to us. For me, I use a Chase Freedom Card to get 3% cashback on gasoline. My wife uses a Fidelity 529 College Rewards Card for 2% rebate on everything, including fuel. Though every time we can only get something like a buck reduced from our gas purchase by using a credit card, savings add up little by little, especially when the money saved are invested

The following is a list of credit cards that give cardholders solid rewards on gasoline purchase. None of them charges a membership fee, some even offer extra benefits such as 0% APR balance transfer for a year, or cash incentives of using the card. Take a look if you are in the market for a gas reward credit card. Or share with us if you know a card that allows card member to earn better rebates.

Discover Open Road Card

• Program highlight: With Discover Open Road Card, you can earn 5% cashback on gasoline purchases at any stations where Discover is accepted. Plus, it also offers 5% Cashback Bonus on auto maintenance. However, the drawback is only the first $100 are eligible for 5% bonus. Other purchases earn 1% Cashback Bonus.
• Introductory rate: 0% APR until October 2008 (6 months).
• Balance transfer rate and fee: 0% APR until April 2009 (12 months), 3% balance transfer fees, but not less than $10 and not more than $75.

Chase Freedom Credit Card

• Program highlight: Chase Freedom Card is the gas reward card I am using, though not exclusively for gas purchase. The card gives 3% cashback on all purchases at any gas station. But it comes with a catch: Gas purchase must be one of top 3 categories in monthly spending to e receive the 3% reward. Otherwise, the rebate will be just 1%. In addition, the card also has a maximum of $18 you can earn on 3% bonus every month.
• Introductory rate: None.
• Balance transfer rate and fee: 3% balance transfer fees, but not less than $5 and not more than $75.
• Additional promotion: Get $50 after first purchase.

American Express and Costco TrueEarnings Card

• Program highlight: The TureEarnings Card just added gas to its reward program last month. Now it allows cardholders to earn 3% cashback on all gas purchase. The problem is not every station accept AMEX. The TrueEarnings card also gives back 3% bonus for restaurants, 2% for travel, and 1% everywhere else including at Costco. There’s no limit on cash rebates you can earn.
• Introductory rate: 0% APR for the first 3 months.
• Balance transfer rate and fee: 1.99% APR balance transfer for the first 6 months, no fee when the transfer is made in the first 40 days.
• The TureEarnings Business Card gives 5% cashback on all gas purchase.

Capital One No Hassle Miles Rewards for Travel & Gas

• Program highlight: If you travel a lot, then Capital One No Hassle Miles Rewards for Travel & Gas makes a good choice, though I don’t like Capital One itself (it’s not in my wallet). With this card, you can earn 3 miles for every dollar spent on gas, as well as travel, and 1 mile everywhere else. There’s no limit on miles you can earn and the miles don’t expire either.
• Introductory rate: None.
• Balance transfer rate and fee: 13.4% APR, no balance transfer fee.

Citi Dividend Platinum Select Card

• Program highlight: The Dividend Platinum Select Card used to pay a generous 5% cashback on gas, but not any more. Now you can earn 5% on gas purchases for just the first 6 months, as well as purchased made at supermarkets, drug stores, convenience stores, and on utility bills. After 6 months, the reward goes down to 2%. Other purchases earns 1% cashback. A maximum of $300 bonus can be earned in one year.
• Introductory rate: None.
• Balance transfer rate and fee: 0% APR for 12 months, 3% balance transfer fee with a minimum of $5 and maximum of $250.

Chase PerfectCard MasterCard

• Program highlight: If you are looking for a card with high temporary gas rebate, then Chase PerfectCard could be a choice. The card gives a fat 6% cash rebate on all gas purchases, but only for the first 90 days. After that, the rebate drops to 3%, which is still good. In addition, the card also allows you to earn 1% cashback on all other eligible purchases. The maximum monthly rebate on gas, however, is $15, which is equivalent to $500 of net gas purchases every month.
• Introductory rate: 0% APR for 6 month.
• Balance transfer rate and fee: 0% APR for the first 6 month, 3% balance transfer fee but not less than $5 and not more than $75.

Citi Driver’s Edge Options MasterCard

• Program highlight: With Citi Driver’s Edge Card, you can earn 3% rebate on all gas purchases and 1% on purchases at everywhere else. Use your rebate toward the purchase of a new or used vehicle, automotive parts, or merchandise rewards..
• Introductory rate: None.
• Balance transfer rate and fee: 0% APR for 12 months, 3% balance transfer fee with a minimum of $5 and maximum $75.

In addition, there are other credit cards that offer extra bonuses when purchasing a particular brand of gasoline. Though the rewards are usually higher those from the general cards listed above, I am not interested in these “special” cards because of the limitations on where the gas is purchased. All the cards in this category also offer 1% cashback on purchases made elsewhere:

• BP Visa Card: 10% cashback at BP/Amoco gas stations for the first 2 months, 5% afterwards.
• Citgo MasterCard: 4% bonus on Citgo gas.
• ExxonMobil MasterCard: 3% rebates at Exxon/Mobil gas stations.
• Gulf Platinum MasterCard: 3% cashback on gasoline purchases at Gulf stations.
• Hess Visa Card: 5% rebate on gas purchases at Hess, Hess Express and Wilco Hess stations.
• Lukoil MasterCard: 4% on gas purchases made at Lukoil/Getty stations.
• Conoco Phillips MasterCard: 4% rebate on gas purchases at Conoco/Phillips gas stations.
• Shell MasterCard: 5% rebate on Shell gas purchases.
• Sunoco MasterCard: 4% rebate on Sunoco gas.

What’s your preferred gas reward credit card?

photo credit: momo_the_monster