Published in: Credit Cards | Sept. 30, 2020
By: Lyle Daly
If you have a lengthy commute, a credit card that earns more back on gas is a must.
Gas is one of the more expensive monthly costs for the typical consumer. According to the latest data on monthly expenses, Americans average $176 per month ($2,109 per year) on gas and oil.
Of course, if you drive often, you could spend double or even triple that. Consumers who provide rideshare services, rack up heavy mileage on their morning commutes, or take frequent road trips can all end up with big gas bills.
This is where a gas credit card can help you save. With any of the following five gas credit cards, you'll get more back each time you spend money at gas stations.
Gas is one of the 3% bonus category options on the Bank of America® Cash Rewards credit card. The card gives you 3% back in a category of your choice, as well as 2% back at grocery stores and wholesale clubs. These 3% and 2% rates apply on up to $2,500 in combined purchases per quarter across all those bonus categories.
If you have any other Bank of America accounts and you're one of its Preferred Rewards customers, you can get between 25% and 75% in bonus cash back. Instead of 3% back, you could get up to 5.25% back.
Since this is a no-annual-fee card, that bonus cash back won't cost you a thing. There's also a $200 sign-up bonus when you spend at least $1,000 on purchases within 90 days.
Costco members have access to one of the highest available bonus rates on gas spending. You can earn 4% cash back on your first $7,000 in eligible gas purchases per year with the Costco Anywhere Visa® Card by Citi. That includes both Costco and non-Costco gas stations.
There's no annual fee for this card, but you would have to pay an annual Costco membership fee of $60 or $120, depending on the type of membership. For that reason, the Costco Anywhere Visa® Card by Citi only makes sense if you're already a member.
You can't do much better on gas and groceries than the Blue Cash Preferred® Card from American Express. It earns an unlimited 3% cash back at U.S. gas stations and 6% back on the first $6,000 per calendar year in U.S. supermarket purchases. It also earns 6% back on select streaming subscriptions and 3% back on transit purchases.
Since this American Express card earns so much bonus cash back, it does carry a $95 annual fee. That makes it better suited to big spenders with monthly high gas and grocery spending. Fortunately, you can also qualify for a great welcome offer of $250 back if you spend $1,000 on purchases in the first three months.
When it comes to bonus categories, the Wells Fargo Propel American Express® card is stacked. It earns 3 points per $1, with no spending caps, in all of the following categories:
Each point has a value of $0.01 and you can redeem them towards travel, cash back, or several other redemption options.
This card also has a 20,000-point sign-up bonus (a $200 value) for spending $1,000 on purchases in the first three months. To top it off, you won't need to pay an annual fee.
It's not often that you see travel credit cards with bonus rewards on gas. The Citi Premier® Card is the rare exception. It earns 3 points per $1 on purchases at gas stations, as well as restaurant, supermarket, hotel, and air travel spending
This Citi card has a $95 annual fee, but it also offers a valuable sign-up bonus of 60,000 points for spending $4,000 on purchases in three months.
Points are worth $0.0125 each when redeemed for travel purchases through the ThankYou Rewards site. You can unlock even more value from Citi ThankYou points by transferring them to Citi's travel partners. For example, you could transfer points to a partner airline to make an award booking. That type of redemption can get you $0.02 to $0.03 per point or more, depending on the airfare you book.
One of the smartest ways to max out your rewards is to pick credit cards that earn more back in the areas where you spend the most. If gas is one of your biggest expenses every month, then you have plenty of card options to consider.
As long as you pay them off each month, credit cards are a no-brainer for savvy Americans. They protect against fraud far better than debit cards, help raise your credit score, and can put hundreds (or thousands!) of dollars in rewards back in your pocket each year.
But with so many cards out there, you need to choose wisely. This top-rated card offers the ability to pay 0% interest on purchases until late 2021, has some of the most generous cash back rewards we’ve ever seen (up to 5%!), and somehow still sports a $0 annual fee.
That’s why our expert – who has reviewed hundreds of cards – signed up for this one personally. Click here to get free access to our expert’s top pick.
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