LOS ANGELES, June 9, 2011 /PRNewswire/ -- As gas prices hold steady nationwide at around $3.78 per gallon, some credit card companies are serving up big incentives to try to get consumers to switch to credit from cash. CreditDonkey, a credit card comparison site, reviewed nine of the most popular cards that highlight gas rewards and came up with some startling and downright dizzying statistics.
To even the playing field, all cards were rated on the same basic premise. An American family fills up their tank once a week at an average total cost of $50.00. That is $2600 total spend on gasoline per year. According to a recent study from the National Association of Convenience Stores (NACS), two-thirds of consumers pay with credit cards.
With gasoline prices weighing heavy on all family budgets, many consumers grab for the debit card instead of their credit card in an effort to control costs associated with their gasoline purchase. This may not be the best choice as some stand-alone gas stations charge a $.45 or more per transaction to process your debit card. That means a premium of at least a $.02 - $.05 on a gallon of gas, just for using an ATM/debit card. Instead, CreditDonkey recommends that consumers take a look at the myriad of cards that are handing out hefty rewards to try to get consumers to switch to credit from cash.
CreditDonkey recommends these cards doing double-duty with no annual fee:
- Discover Open Road card is offering a double earning promotion which equates to 2% cash back instead of the base 1%. Plus, this summer they are also topping that offer with a $10 cash-back bonus on each of your first 5 fill ups of $25 or more during the first 90 days. That is a total of $102.00 in rewards during your first year if you spend just $50 on gas once a week for one year.
- Also making a strong showing is the BP VISA card. This card offers a straightforward 5% on all gas purchases at BP stations, which equates to $130.00 at the end of your first year if you spend just $50 on gas at BP stations once a week for one year.
- However, the best reviewed card was the Ink Cash from Chase card. This card is exclusively for small businesses, but worth mentioning as it exceeds the competition in overall reward value. This card provides 3% back on all purchases + a $100 rebate after your first purchase. The $100 rebate is awarded as 10,000 points. Taking advantage of both of these promotions will earn you a total of $178.00 in incentives if you spend just $50 on gas once a week for one year. That is the equivalent of over three weeks of free gasoline in the first year.
"Credit savvy consumers can really save a lot of money by using credit wisely," said Charles Tran, Founder of CreditDonkey, "and the more you spend on gas the better the rewards on each of these cards."
CreditDonkey provides comparison analysis on a number of credit card categories. For more information on the other gasoline rewards cards reviewed, or for more comprehensive information on credit cards in general, please visit http://www.creditdonkey.com/gas
CreditDonkey.com is a credit card comparison site that publishes credit card research, informed opinions and related news/trends that empower American consumers to make informed credit decisions. Use CreditDonkey.com and save time and money. For more information, go to http://www.creditdonkey.com