Credit cards - gasoline purchase rebates through oil company credit cards - Brief Article

Kiplinger's Personal Finance Magazine, July, 2001 by Joan Goldwasser

Looking for a silver lining inside the sky-high gas-price cloud? Check out gas rebate cards.

As gasoline prices soar toward $3 a gallon, gasoline rebate cards are beginning to shine, Unlike cards that are good only at the filling station, these are Visa or MasterCards emblazoned with the oil companies' logos. You can use them anywhere that accepts Visa or MasterCard, but you earn a higher rebate on gas purchases. The Shell card shown in the table pays a 5% rebate on the cost of filling your tank at Shell, and a 1% rebate on most other purchases. Rebates are credited to your monthly statement and applied to the cost of future fill-ups. These cards are not for you if you regularly carry a balance on your card, because the interest rate is high. But if you pay off your balance every month and don't have to worry about carrying charges, putting a gas rebate card in your wallet could pay off.

Low-interest premium cards Best if you carry a balance

                             RECENT    CASH-ADVANCE      ANNUAL
ISSUER                       RATE(*)   RATE/FEE(c)         FEE

Pulaski Bank & Trust (G)      6.99%    6.99%/none          50
Simmons First National (G)    9.00     9.00/none           35
USAA Savings Bank (G,P)       9.00     9.00/none           45

                                 LATE/        TELEPHONE
ISSUER                        OVER LIMIT        NUMBER

Pulaski Bank & Trust (G)       $29/$29       800-980-2265
Simmons First National (G)     20/none       800-636-5151
USAA Savings Bank (G,P)        20/none       800-922-9092

No-fee premium cards Best if you usually pay the balance each month

                             RECENT    CASH-ADVANCE       GRACE
ISSUER                       RATE(*)   RATE/FEE(c)       PERIOD

Chase Manhattan Bank (G,P)    9.15%     19.05%/3%       22 days
Wachovia (G)                  9.40      19.99/4         20 days
5Star Bank (P)                9.75      15.4/2          25 days

                                 LATE/        TELEPHONE
ISSUER                        OVER LIMIT        NUMBER

Chase Manhattan Bank (G,P)     $29/$29       800-413-5661
Wachovia (G)                    29/29        800-842-3262
5Star Bank (P)                 15/none       800-776-2265

Rebate cards Best of the gasoline cards

                             RECENT    CASH-ADVANCE      ANNUAL
ISSUER                       RATE(*)   RATE/FEE(c)         FEE

Shell MasterCard             15.99%    19.05%/3%      $20([dagger])
Gulf Oil Visa (P)            18.99     19.80/4        none
Exxon MasterCard             19.34     19.34/2.5      none

                                REBATE
                                EARNED        TELEPHONE
ISSUER                         GAS/OTHER        NUMBER

Shell MasterCard             5%/1%           800-373-3427
Gulf Oil Visa (P)            3([double       800-367-4853
                             dagger])/
                             0.5(**)
Exxon MasterCard             3/1([dagger])   800-554-6914

(*) As of May 4; rates are adjustable, often tied to the prime rate.
(c) Cash advances often have no grace period; additional fees may be
charged. (G) gold card (P) platinum card ([dagger]) waived first year
and subsequent years if make nine purchases of Shell gas. (*)
additional 1% if you revolve a balance. (**) additional 0.5% if you
revolve a balance. ([dagger])([dagger]) expires after six months.

SOURCE: FOR LOAN RATES AND CREDIT CARDS: Bankrate.com, N. Palm Beach,

Fla.