If you
have a car, getting fuel will likely be a part of your regular spending. One of the easiest
ways to optimize the accumulation of points, cash back or miles is with fuel
purchases.
Earning points for
filling up your vehicle can be done in 2 ways:
1. Purchase gas station gift cards at higher credit card reward rates
2. Use a credit card that earns more rewards at the pump
Purchasing
gas gift cards:
Right now, the Chase Freedom card
currently earns 5% cash back on grocery store purchases until the end of
June 2012. Before checking out with my groceries, I grab a few of the
gas gift cards off the shelf:
Not only do I earn extra Chase
Ultimate Rewards points doing this, there’s an additional benefit. Have
you noticed, some gas stations have 2 different prices for gas? One
price is for “debit / cash” purchases, the other price is for “credit card”
purchases. The price of using a credit card to make your gas
purchase is usually more expensive than using debit or cash to make the
purchase.
When you use a gas gift card to purchase gas at the station,
you are automatically charged the CHEAPER amount (the debit / cash price of
gas).
American Express has 2 cards that earn extra cash back at grocery stores as well. The Blue Cash Everyday® Card from American Express card currently earns
3% cash back on all grocery store purchases and Blue Cash Preferred® Card from American Express card earns 6% cash
back on grocery stores. 6%
cash back on all grocery and gift card purchases is quite a hot deal. This
card carries a $75 annual fee, but don’t let it scare you, especially if you go
to the grocery store frequently. This is a great must-have card for
large families.
Another one of my favorite cards, the Chase Ink Business card earns 5% cash back at purchases made at office
supply stores, like Office Depot, Staples, and Office Max. Whenever
I’m there, I pick up extra gas gift cards, then earn extra rewards.
Earn more rewards at the pump with your credit card:
There
are several great credit cards that offer direct cash back for purchases at gas
stations:
The Chase Freedom card starts earning 5% cash back on gas stations (and
restaurants) from July 1st, 2012 to September 30th, 2012. Another reason why the Freedom
card is an excellent card to keep in the wallet is that the rotating categories
help earn Ultimate Rewards points very quickly. Unfortunately, it does not earn 5% cash back on gas
purchases all year.
The PenFed Platinum Cash Rewards card earns 5% cash back on all gas purchases year round. I
prefer to maximize my Chase Ultimate Rewards points, so I have not signed up
for this card.
The Blue Cash Preferred® Card from American Express card earns 3% cash back at gas stations.
Don’t
forget to find the cheapest gas station near you using Gas Buddy. Gas buddy is a free mobile application that lets you use your mobile phone's GPS to find local gas stations and their current gas prices near you.
Next time you fill up your car at the gas station, don't forget the 2 ways to maximize your rewards:
1. Purchase gas station gift cards at higher credit card reward rates
2. Use a credit card that earns more rewards at the pump
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