When it comes to saving money on everyday expenses, gas is one category where a cash back credit card can make a real difference. As someone who drives regularly, I’ve found that using a dedicated cash back gas credit card can help lower the overall cost of fueling up my car. However, choosing the best card isn’t always straightforward. With so many options out there, I’ve spent a considerable amount of time reviewing and comparing different cash back gas credit cards. In this guide, I’ll walk you through the top five gas credit cards, how they work, and how you can make the most out of them.
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Why Use a Cash Back Gas Credit Card?
Before we dive into specific cards, I want to explain why using a cash back gas credit card makes sense. Gas expenses can add up quickly, especially if you have a long commute or take road trips often. A cash back gas card allows you to earn a percentage of your spending back. Over time, those percentages can add up to substantial savings. The key to making the most of these cards is understanding their benefits and choosing the one that best fits your lifestyle.
Let me also clarify that not all gas credit cards are created equal. Some offer higher cash back rates on gas purchases, while others may give you a flat rate on all purchases, including gas. Additionally, some cards may have special partnerships with specific gas stations, while others are more flexible. Understanding these details can help you choose the right card for your needs.
1. Chase Freedom Flex℠
The Chase Freedom Flex℠ is one of the top contenders in the market for cash back on gas. This card offers 5% cash back on up to $1,500 in combined purchases in rotating quarterly categories, including gas stations. It also offers 1% cash back on all other purchases.
Key Features:
- 5% cash back on gas (up to $1,500 per quarter)
- 1% cash back on all other purchases
- No annual fee
- Sign-up bonus (if applicable at the time)
One of the main advantages of the Chase Freedom Flex℠ is its flexibility. While you can earn 5% back on gas purchases for a limited time each quarter, you also earn 1% back on other purchases, which is a nice perk. The rotating categories are easy to track, and you can plan your purchases around them to maximize rewards.
Example Calculation:
Let’s say you spend $100 on gas in a quarter when the 5% category is active. You’ll earn $5 in cash back. If you spend another $300 on other purchases that quarter, you’ll earn an additional $3 in cash back.
Total Cash Back:
- 5% on $100 (gas) = $5
- 1% on $300 (other purchases) = $3
- Total = $8
2. Citi Custom Cash℠ Card
The Citi Custom Cash℠ Card offers 5% cash back on your top eligible spending category (including gas) each billing cycle, up to the first $500 spent. After that, you earn 1% on all purchases.
Key Features:
- 5% cash back on your top category (including gas) up to $500 per billing cycle
- 1% cash back on all other purchases
- No annual fee
- No rotating categories to track
I like this card because it automatically identifies where you spend the most and rewards you accordingly. If you consistently spend a lot on gas, the Citi Custom Cash℠ Card will reward you with 5% back, which can add up quickly.
Example Calculation:
Let’s assume you spend $500 on gas in a billing cycle. You’ll earn 5% back on the full $500, which is $25 in cash back. If you also spend $200 on other purchases during the same cycle, you’ll earn $2 back from those purchases.
Total Cash Back:
- 5% on $500 (gas) = $25
- 1% on $200 (other purchases) = $2
- Total = $27
3. Blue Cash Preferred® Card from American Express
The Blue Cash Preferred® Card from American Express is another strong option if you’re looking for high cash back rewards on gas. This card gives you 3% cash back on gas purchases at U.S. gas stations, 6% on select U.S. streaming subscriptions, and 1% on all other purchases.
Key Features:
- 3% cash back on gas at U.S. gas stations
- 6% cash back on select U.S. streaming subscriptions
- $95 annual fee
- $300 statement credit if you spend $3,000 in the first 6 months
This card is a great option if you want consistent rewards on gas without worrying about rotating categories or tracking. However, the $95 annual fee should be factored into your decision. If you spend a lot on gas, it’s easy to justify the fee with the 3% back.
Example Calculation:
Let’s assume you spend $500 on gas each month. With 3% back, you’ll earn $15 in cash back. Over a year, that’s $180, which easily offsets the annual fee.
Total Cash Back (Yearly):
- 3% on $500/month (gas) = $15/month
- $15 x 12 months = $180 (yearly)
- Annual fee = $95
- Total = $180 – $95 = $85 net cash back
4. Discover it® Cash Back
The Discover it® Cash Back card offers 5% cash back on up to $1,500 in quarterly rotating categories, which often includes gas stations. After you hit the $1,500 cap, you earn 1% back on all purchases.
Key Features:
- 5% cash back on rotating categories (including gas)
- 1% cash back on all other purchases
- No annual fee
- Cashback Match® for new cardmembers (Discover will match all the cash back you’ve earned in your first year)
The Discover it® Cash Back card is another solid choice if you don’t mind tracking the rotating categories. The Cashback Match® feature in the first year is a nice bonus that effectively doubles your cash back.
Example Calculation:
If you spend $100 on gas during a quarter when the 5% category is active, you’ll earn $5 in cash back. If you also spend $200 on other purchases, you’ll earn $2 back.
Total Cash Back (in first year with Cashback Match®):
- 5% on $100 (gas) = $5
- 1% on $200 (other purchases) = $2
- Total = $7
- Cashback Match® = $7 x 2 = $14
5. Costco Anywhere Visa® Card by Citi
If you’re a Costco member, the Costco Anywhere Visa® Card by Citi is a great option for earning cash back on gas. This card offers 4% cash back on eligible gas purchases (including Costco gas) up to $7,000 per year, and 1% after that.
Key Features:
- 4% cash back on gas purchases (up to $7,000 per year)
- 3% cash back on restaurants and travel
- 2% cash back on Costco purchases
- No annual fee with a Costco membership
This card stands out if you’re a Costco member who spends a lot on gas. The 4% cash back is hard to beat, and it applies to both Costco and non-Costco gas purchases. However, the $7,000 annual cap means you won’t earn 4% back on gas purchases beyond that limit.
Example Calculation:
If you spend $150 per month on gas at Costco, you’ll earn 4% on the first $7,000 annually. That’s $280 in cash back each year from gas purchases alone.
Total Cash Back (Yearly):
- 4% on $150/month (gas) = $6/month
- $6 x 12 months = $72 (yearly)
- Total = $72
Conclusion
When it comes to choosing the best cash back gas credit card, the decision depends largely on how much you spend on gas, whether you want a rotating category card or a fixed cash back percentage, and if you’re willing to pay an annual fee for enhanced rewards. In my experience, cards like the Chase Freedom Flex℠ and Citi Custom Cash℠ Card offer excellent flexibility and rewards, while the Blue Cash Preferred® Card offers consistent returns on gas purchases if you’re okay with the annual fee.
Each card has its advantages, so consider your spending habits and how often you refuel when making your choice. With the right card, you can easily start saving on gas and put that cash back to better use.
