Tempted to save gasoline
costs with a gas company "Rebate" credit card?
By Jeanette Joy Fisher
The cost of gas has continued to inflate over the past
thirty years. Gasoline companies vie for your valuable
business by offering tempting rebates and other
conveniences. Exxon makes it easier for you to buy; all
you need to do is wave your card and fill up. "Speedpass:
It's more convenient than cash and faster than a credit
card."
How much do you want to pay for convenience? Stop and
think before you apply for another credit card. What
impact will an additional credit card have on your
credit score?
Your credit score goes down a few
points each time you apply for credit.
Your credit score goes down when you
use unfavorable "consumer" credit. Gas company type of
credit isn't considered prime by mortgage lenders. In
fact, the type of credit you use influences ten percent
of your credit score.
Saving a little money for gas can
cost you a lot of money in higher interest rates on your
mortgages.
Also, gas company credit cards usually charge a higher
interest rate than a major credit card like a bank Visa
or MasterCard account. Check the annual fee. Some
companies charge as much as $79 in annual fees. The big
problem with gas credit cards--consumers let the account
balance roll over to the next month and end up paying
interest charges on top of the expensive gas. Will the 5
percent rebate make up for all these charges?
Now, for the good news...
Some banks offer quality Visa cards with rebates for gas
purchased at any gas station. For instance, MBNA America
Bank's AAA Diamond Advantage Visa gives you both reward
points and gift certificates. Other banks like Citibank
partner with gas companies to issue a MasterCard with a
5 percent gas rebate and 1 percent rebate on general
purchases. When you make the minimum number of
purchases, your annual fee is waived. Maybe it's time to
transfer your airline mile credit cards into gasoline
reward cards.
Choose your credit wisely. Determine your financial
goals. Do you want to build wealth in real estate? Then
make your number one priority for your credit: mortgage
finance qualifications. Weigh your options of gas
rebates with the bigger picture.
Copyright © 2006 Jeanette J. Fisher
Facing Foreclosure? Alternative
Payment Plan Can Save Your Home
When the foreclosure of your home by your lending
institution seems to be looming just around the corner,
it can be a frightening and embarrassing situation.
Workout Plan
Jeanette
Fisher teaches how to get out from under credit card debt,
how to use credit to make money, and six ways to
build strong credit to finance your first home and
multiple investment properties. For a free credit
advice and free ebook "Credit Tips for Mortgage
Financing," see
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