Pinching pennies at the pump: How to make gas rewards work for you

SALT LAKE CITY — You've probably seen the ads; save at the pump with this-or-that credit card. Sometimes, those gas rewards actually work. “Using the right card can save you about 5% to 6% on gas, saving you hundreds of dollars,” Chip Lupo of WalletHub said. But not so fast. Many gas stations in Utah charge more for you to pay with a credit card than with cash. So, you’re not going to get the full savings benefit when the credit card surcharge negates the cashback rewards. “The way to save money might just be to stick a couple 20s in your pocket?” I asked Lupo. “In a lot of cases, you can do that,” he replied. Carrying a balance on your credit card can also wipe away the benefits of its cashback gas rewards. “If you're going to go that route, you definitely want to pay the balance in full because those rewards are going to be moot,” Lupo cautioned. Moot because, with the average credit card interest rate at around 22%, you're not saving money on gas. You're paying extra. Before signing up for a credit card for the rewards, it's also worth doing a little math. Many come with an annual fee of around $100. If your potential savings on gas using the card total less than a $100 a year, that rewards card may not be worth it. Often overlooked savings can come from store gas rewards. Usually free. No interest. No risk, beyond maybe some junk emails. Lupo also likes gas apps. “There's plenty, like Upside and GasBuddy, that you just type in a ZIP code and it can help you find the cheapest gas,” he said. “And in a lot of cases can earn cash back.”

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