Credit question: What’s the best credit card for cash back on gas purchases?
Answer: With gas prices inching upward, I’ve been getting this question a lot. There are really several credit cards that have pretty good cash back offers on gas purchases.
One that I particularly like is the Discover Open Road Card – $75 Restaurant.com Gift Certificate. You get 2 percent cash back on purchases at eligible gas stations and restaurants. This amount is capped at $250 per billing period, which isn’t ideal, but once you reach the cap, you still get 1 percent on gas purchases. There’s a zero percent introductory APR for 12 months and the go-to APR starts as low as 11.99 percent. If your first purchase is within six months of opening your account, you get a $75 Restaurant.com gift certificate. If you love dining out, that’s a nice perk.
Many credit cards either exclude or offer a lower cash back percent on warehouse purchases. So if you buy gas at Costco, consider the True Earnings Card from Costco and American Express. You get 3 percent on gas purchases, up to $3,000 per year. After that, you get 1 percent. Plus, you get 3 percent for restaurants, 2 percent for travel, and 1 percent on just about everything else. The downside to this card is the 15.24 percent APR, although you do get a zero percent introductory APR for six months. If you don’t carry a balance, it’s a good card to consider for the gas savings.
If you know you’ll put a lot of purchases on your credit card, then Blue Cash® from American Express® is another option. You only get 1 percent cash back on gas purchases for the first $6,500 you spend. But after that, you get 5 percent on eligible gas purchases.
At publishing time, Discover Open Road Card – $75 Restaurant.com Gift Certificate, True Earnings Card from Costco and American Express and Blue Cash® from American Express® are offered on Credit.com product pages and Credit.com may be compensated if our users apply for and ultimately sign up for the card. However, this relationship does not result in ANY preferential editorial treatment.
Disclaimer: This content is not provided or commissioned by American Express. Opinions expressed here are author’s alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.
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Beverly Blair Harzog A consumer advocate, Beverly focuses on credit card issues and provides insight about current news that affects the credit card industry and consumers. She's a nationally recognized expert on credit card issues and is also the co-author of The Complete Idiot's Guide to Person-to-Person Lending. Visit Beverly at BeverlyHarzog.com.
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I pay my bill in full each month. I want a good rewards card where I can use for all items, gas, groceries, pharmacy, as I put everything on my card. I don’t need airline rewards. I do not want American Express a many do not accept. Restaurant or gift cards are preferred. Thank you for your suggestions.
Carole Stokes
the american express blue cash is by far the best card in my book and alot of places accept it now 5 years ago maybe not but now its accepted most places i do keep a visa just for emergencies matter fact the only place that wont take the card is the local liquor store and my college that ive found so far everywhere else no problems…. hope i could help
Kyle, thanks for chiming in. I agree that the Blue Cash Everyday card is one of the best. AmEx is accepted at a ton of places, but Visa and MC still rule the roost.
Carole, you might try looking at the Chase Freedom Visa card. You get 5 percent on rotating categories,such as gas and groceries, and a full 1 percent on everything else. Right now, there’s also a $200 bonus if you spend $500 in the first three months.
Your best bet ALWAYS is to use credit cards ONLY for the convenience of paying your bills once per month, with a 25 days delay in paying for some purchases – NOT for things you cannot afford to pay cash for !. When you can find cards that offer cash rewards (Chase Freedom, as noted, does offer a rolling calendar quarter category of 5% cash back purchases, as does Discover. Both have limits for the total purchases that will qualify. BP has a Visa card that offers 5% on BP gas, 2% on restaurants, with NO LIMIT, while Hess has one that pays 3% on ALL Hess purchases, with NO LIMIT) GO FOR IT on them. NEVER, NEVER, NEVER CARRY A BALANCE ON YOUR CREDIT CARDS ! When you do, you will be EATEN by the interest rates ! It IS A SLIPPERY SLOPE TO BANKRUPTCY !
John–You are so right about never carrying a balance! it is, indeed, a slippery slope to debt.
This one’s easy. PenFed Visa Platinum. 5% cashback on gas at any station. No annual fees.