Did you know the median new car price is over $35,000 a year? Yet the median household income is still only about $62,000 a year. That doesn’t bode well for a lot of people’s budgets. At least if you use one of the best gas rewards credit cards mentioned below, your everyday spending can help pay for gas money and cash back.
Buying a car is an American right of passage. However, owning too much car is one of the worst things Americans can do with their finances.
Remember, once you buy a car with cash, you not only have to pay for maintenance, insurance, and taxes, you’ve also got to pay for gas. If you actually borrow money to finance a depreciating asset, then of course you’ve got to may a monthly payment as well.
I remember back in 1999, I could buy a gallon of gas for 99 cents. Today, the average price of gas in America is over $3.5 a gallon. Ah, the good old days when things were affordable!
Prices Are Rising
Check out how all the various US consumer goods and services in the chart below have inflated aggressively since 1998. If you want to achieve financial freedom, it’s best to stay healthy to avoid crazy hospital service fees.
In addition, you should probably go to public university or learn everything online for free to avoid expensive tuition and books, and you should probably not rent for life.
With regards to this article, one of the best ways to counteract the rising cost of gas is by getting one or two of the best gas rewards credit cards. According to the Bureau of Labor Statistics, consumers spend over $2,000 a year on gas, motor oil and other fuels.
According to the U.S. Department of Transportation, the average American driver puts in 13,474 miles behind the wheel each year. If you’re a heavy driver, then getting a gas rewards credit card can definitely help you reduce gas costs.
In addition, the right gas credit card can offer you as much as 4% cash back at the pump, and potentially even more valuable travel rewards.
I’ve spent dozens of hours researching hundreds of cards for this article. Now let’s look at the top 3 best gas rewards credit cards on the market today.
Top Three Best Gas Rewards Credit Cards
- Chase Freedom Flex: Best for 5% quarterly bonuses
- Chase Freedom Unlimited credit card
- Capital One Quicksilver Cash Rewards Credit Card
Chase Freedom Flex Card – Huge 5% Quarterly Bonus
The Chase Freedom Flex card is a cash back credit card that offers rotating quarterly bonus categories where you can earn 5% on those purchases. The 5% bonus payout is limited to the first $1,500 in combined purchases in the bonus categories per quarter. All other purchases you make on your card will earn 1% cash back automatically.
A 5% cash back reward offering is massive compared to other cash back cards that usually offer at most 2% cash back. Previous categories have included gas stations, grocery stores, drugstores, and home improvement stores.
All you have to do is register for the quarterly bonuses and all eligible purchases you make during that quarter will earn 5% cash back. A little proactivity is worth the high payouts offered by this rewards card. Plus, if you max out all four of the quarterly bonus promotions, you’ll earn $300 in cash back.
Last year, gas stations were the quarterly bonus category twice, meaning cardholders were earning 5% cash back for six months. This year and next, I expect the gas category will continue to be quite popular.
New Chase Freedom Flex cardholders also get $200 cash back after spending $500 on purchases within the first three months of account appointing.
Finally, the Chase Freedom Flex card has no annual fee! This is my favorite gas rewards credit card for people who don’t drive a huge amount and would like to save.
Chase Freedom Unlimited Credit Card
Here’s a summary of the best reasons why I also love the Chase Freedom Unlimited credit card. It’s a very popular with customers looking for the best gas rewards credit cards.
- Credit score needed: good to excellent
- Sign up bonus: Earn a generous $200 bonus after you spend $500 on purchases in your first 3 months from account opening.
- High cash back rates on select categories: For example, get 5% cash back on grocery store purchases of up to $12,000 spent in the first year.
- Cash back promotions: 5% cash back on up to $1,500 in purchases in rotating categories each quarter
- 5% cash back on travel purchased in the Chase Ultimate Rewards® portal,
- 3% cash back on eligible dining at restaurants and drugstore purchases.
- 1% unlimited cash back on everything else
- Annual fee: $0
- Intro APR: You get 0% intro APR for 15 months from account opening on purchases.
Capital One Quicksilver Cash Rewards Credit Card
The Capital One Quicksilver Cash Rewards Credit Card is a bread and butter rewards credit card appropriate for all. In addition to an unlimited 1.5% cash back offering, the Quicksilver card is also one of the best credit cards for international travelers.
When you travel internationally, a lot of cards will charge you foreign transaction fees. Not the Capital One Quicksilver card. Not only does it have no annual fees, it also has no transaction fees.
In addition, you can use your credit card in any country the same way you would in America. That valuable peace of mind that lets you enjoy your travels worry free.
The Capital One Quicksilver Cash Rewards card offers a one-time $200 bonus after you spend your first $500, plus an introductory 0% APR for the first 15 months.
With the Quicksilver card, you can purchase things with confidence, pay no interest for 15 months, travel internationally without worry, and never feel pressured to spend more to earn more due to no annual fee.
Gas Rewards Credit Cards Are Great
Everyone who drives should own one of the best gas rewards credit cards. If you’re going to spend money on something, you might as well get some rewards benefits while doing so.
In addition, to choose the right credit card for gas purchases, you should figure out how many miles you drive each year. Next, calculate how many rewards points you can get with each type of card.
Don’t be scared away by an annual fee if you drive more than 12,000 miles a year. You can get back way more rewards than the cost if you sign up for one of the best gas rewards credit cards with a high unlimited cash back percentage on all categories.
Get The Best Gas Rewards Credit Card For Your Needs
If you drive less than 12,000 miles a year, it’s probably best to get a no annual feel card like the Chase Freedom Flex card where you get 5% cash back on revolving categories every quarter.
Just always remember to take advantage of credit cards and not the other way around. In addition, you should always pay your balance in full each month to avoid paying high interest rates.
For further suggestions on saving money and growing wealth, check out my Top Financial Products page.
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About the Author: Sam worked in investment banking for 13 years in international equities. He received his undergraduate degree in Economics from The College of William & Mary and got his MBA from UC Berkeley. In 2012, Sam was able to retire at the age of 34 largely due to his investments that now generate roughly $250,000 a year in passive income. He spends time playing tennis, driving his Range Rover Sport to the Tahoe mountains, taking care of his family, and writing online to help others achieve financial freedom too.
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