4 Dangers of a Gas Rebate Credit Card

Using a gas rebate credit card can provide you with a way to save some money on your gas charges. However, using this type of card could be responsible for several financial dangers. Here are some of the dangers of using a gas rebate credit card.

1. Higher Interest Rates

One of the big problems with this type of card is that the interest rates are typically going to be higher than a traditional credit card. This means that you think you are going to be saving money on gas when really you are going to be paying the credit card companies more in interest to make up for it. This means that they are going to attempt to make up for the gas savings with all of your other purchases. If you plan on keeping a balance on this card for extended period of time, it could end up costing you substantially. This is true even if you only buy gas with your card. Even though you are getting a rebate on the gas, you will still have to pay interest on the amount that you charge.

2. Requesting Rebates

Another problem with this type of card is that you may have to be responsible for requesting the rebates on your gas. Some credit cards will not automatically pay you the rebates that you are owed. This can be a problem for some people because they do not fully understand that they are going to be responsible for this process. They never get around to requesting the rebates and the credit card companies do not freely offer them. This means that the credit card company is going to hang onto your money and it will be just like having any other credit card except that you have a higher interest rate.

3. Accumulating Balances

Gas rebate credit cards have a tendency to entice people to accumulate large balances. People that put gas purchases on a credit card do not keep track of how much money they are spending on gas. They simply charge it and forget about it. Then, when the bill comes due, they do not have enough money to pay it. Budgeting for gas can be difficult but it is even more difficult when you do not have any idea how much you are spending on it. The convenience of being able to pay at the pump and the enticement of a rebate on your purchase is often too much for people to pass up. If you are going to be using this type of card, make sure that you keep the balances to a reasonable level.

4. Late Fees

If you cannot afford to make your payment or if you forget to do so, you are going to have to pay late fees and potentially higher interest rates. In some cases, the credit card company will take away your earned rebates as well. This means that you are going to potentially be paying even more money for the gas that you buy in the long run.

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