Apply online for gas cards to save on gas at the pump. This way of saving seems very attractive and popular for many people today, but read the card’s rate & term details carefully.

I mean really carefully. The issue with a gas credit card is that this product is pushing our sensitive buttons related to highly fluctuating gas prices. It appeals to our emotions more than to our intellectual abilities to make an educated decision.

Therefore, if you decide to go with a gas card read the full terms and conditions provided by the credit card issuer first before you apply. And let me explain why.
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There are several banks currently on the gas cards market actively promoting their products. Among them you can see pretty aggressive players such as Capital One, Chase, Citi, and Discover. The cards they promote are usually not purely gas cards but what we call rewards cards, offering rewards points for a different product purchase, including gas, air miles, everyday purchases, etc.

The most common characteristics of the card are:

• 6 – 12 month introductory rate
• 3 – 6 month introductory rebate percentage
• annual fee
• rebate points on purchases or cash back

As you can see, even at a glance, there is lots of “introductory” here. And, therefore, re-read the full terms & fees credit card agreement, which may include more detailed information.

For example, let’s take a look at a Chase PerfectCard MasterCard gas rebate credit card. Usually gas cards offer 5% cash back on gas purchases; however, this one offers 6% cash back. Looks much better, huh? Sure, until you take a look at what they say in the card’s terms.

And here it is:
“6% Automatic Rebates on all eligible gas purchases at any gas station for the first 90 days” and “3% Automatic Rebates on all eligible gas purchases at any gas station after the first 90 days.”

Let’s do simple math here. I spend around $300 on gas per month. Therefore, my savings for 90 days will be $54. Looks like a pretty tangible amount. What about one year savings? It would be $54 for the first 3 month period and $81 for the remaining 9 months, which gives us a $135 savings per year.

It may seem good for some and bad for others, but the point is we need to evaluate the whole offer, not just the most attractive feature.

This card also offers a 0% introductory rate for 6 months and no annual fee.  In addition, it offers a 1% rebate for all other purchases. However, we should realize that this credit card rebate is not the same as if you would earn 5% cash or you would earn a point for every purchase. These are automatic rebates that apply towards your future purchases. And it simply means you can not transfer it to your checking account or receive your rebates as cash.

Another thing to be careful with is a card’s interest rate. In our example, we can get the Elite, Premium, and Standard rate with 9.99%, 13.99%, and 18.99% accordingly. Even the lowest APR is higher than you could get if you were to shop for a regular card.

Whenever you think about filling out a card application, include all other important factors in your decision process, such as a balance transfer fee, a cash advance APR and fee, a default fee, and an overdraft APR and fees. And if you do this, you will make a really educated and intelligent decision on your next credit card.