Prepaid and Gas Credit Cards Explained
July 14th, 2011 | 
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Gas cards have been proven to stretch gas money and using them is a good way to augment the ever-increasing gas prices. Basically, there are two types of gas cards: prepaid and gas credit cards.
Gas credit cards work the same way as ordinary credit cards, only that you earn rebates when used for gas purchases. During introductory periods, you can earn as much as 10% rebates on gas purchases. On regular periods on the other hand, you earn rebates from 2% to 5%, depending on the card company. The rebates are not always earned upfront but are accumulated in the form of rewards points. And once these points reach the redeemable amount set by the card company, they are converted into either cash back, airline tickets or gift certificates. The cash back reward however is preferable since it can be used to pay for gas purchases.
Prepaid gas cards on the other hand, works almost the same way as gas credit cards only that there is a limit to the amount you can use it for. Basically, you set the amount limit that the card can be used for by paying for it upfront; this is why it is called prepaid.
When you search for gas cards, you basically have to make a choice between the two types. Which one is better? There is no definite answer since your choice will depend on your gas spending habit. If you need help controlling your gas expenses, then prepaid gas cards are preferable. However, in instances when you loose your gas cards, gas credit cards are preferable since the balance on prepaid cards is unrecoverable. Also, using gas credit cards will help improve your credit score or your credit history provided that you are vigilant in paying your bill on time and in full.
Posted in Prepaid Gas Cards | 
Tags: Airline Tickets, Credit Help, Definite Answer, Gas Expenses, Gas Money, Habit, Prepaid Cards, Rebates