07.14.08 | Save Money on Gas with Rewards Cards
Have you heard the fuel forecast? Experts are predicting gas prices will rise above $5 per gallon by fall. If
you’re like me and commute daily then you understand how the pain you feel at the pump is only going to increase and at the worst possible time for those going back to school. I started to think about this and wondered how students can counter this increase without somehow making more money.
I was reminded of this roommate I had after college named Jason. Jason was an accountant and I gave his quirky behavior around money and finance a mixed review. One of the things he always did was to pay for all his groceries, gas and other everyday expense with his credit card. He did it because it was easier to manage his money and he got some sort of rewards back.
Personally I thought that was a good idea in theory but that in reality using a credit card for regular expenses would make it harder to budget. For example it’s much easier to go over your grocery budget if you are using a credit card versus cash or a check. But then I thought about gas. Gas is different; you can only fill up your tank until it’s full so there’s no risk of overspending. A gas rewards credit card is actually a really good idea.
Gas rewards cards are just like regular credit cards except they pay you back a percentage of every dollar you spend at the pump. Typically they will give you 3% to 5% back as cash for every dollar spent which is the same thing as saving 12 to 20 cents per gallon. This can add up to $2 to $5 for each fill up. Multiply that by how many times you fill up each month and that’s the money you could be saving on fuel which you simply aren’t right now. You’re buying the gas anyway so if you can be responsible and save the cash you’d normally spend on gas this is an easy way to off set the increases.
The challenge for you is to be responsible and try to only use it for gas and pay it off each month. If you end up letting your balance carry over from month to month you’ll be paying them back the money they’re paying you to cover interest payments. That might be OK in a pinch but it’s not a good plan. So what credit cards offer student the best Gas Rewards Programs?
Discover® Open Road(SM) Card for Students
This card is for students with no credit history or a very limited one. Through the Discover® Open Road Card cash reward program, you will earn a full 5% in cash rebates for gas and auto maintenance purchases! There is no annual fee, and a reasonably low APR (14.99%) for those who qualify. Of course this only applies if you don’t pay your balance each month. PAY YOUR BALANCE EACH MONTH & YOU WON’T GET CHARGED INTEREST and it builds terrific credit… Apply Now.
No matter what you choose to do, be aware that there are lots of ways to save money besides plopping pennies in a piggy bank and you should always be trying to think of them. Like anything else, you don’t become good with money without practice. If you’re a member of www.ScholarshipPoints.com you can use the code GIVEMEGAS to earn 15 scholarship points.
