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@subwaysandwich wrote:
Is there even a point to use a credit card to buy gas? For the gas stations around me, they always charge a much higher price for those using credit cards, and wouldn't that just cancel out any awards earned than if I had just paid for gas with cash?
What's the difference per gallon?
For e.g. current prices where I live are about $3.50, so unless I see at least a 18 cent reduction, I won't pay cash For convenience, I'd keep the threshold at about 20 cents discount.
I’ve wondered about this too but found its worth it if you do the math. I guess it really depends on how much more it is to use a credit card – around here it is usually only a 10 cent/gallon difference. So if you have a Chase Freedom (or something similar) which gets 5% two quarters out of the year it saves you more. Let’s say you are charged an extra 10 cents/gallon for using a credit card. If you buy 16 gallons you pay an extra $1.60 just to use your credit card. If gas is $4/gallon that is $64. 5% of that is $3.20 – more than the extra you are paying to use your credit card. Even a card that gets only 3% back (more common) would be better by 30 cents under that scenario.
@subwaysandwich wrote:
It's usually like 10 cents more just for using credit card
So while that's a pain, at 3.50 (3.60 for credit), I still come out ahead using credit on my SM, or for this quarter Discover It/Freedom (I come out VERY ahead on Freedom this Q for gas), since I'd be effectively getting a 18 cent/gallon discount using SM or IT
@subwaysandwich wrote:
It's usually like 10 cents more just for using credit card
Theres no difference by me for paying with a card so I guess its worth it for me. Currently gas is sitting at $3.64 so a tank of gas earns me just under 3 bucks on my Discover or Sallie card. Adds up fast for summer months when I feel like I'm constantly filling up.
@subwaysandwich wrote:
It's usually like 10 cents more just for using credit card
If you pay $4 a gallon and used a CC that got 3% cash back for gas, you'd be getting 12 cents a gallon, which would offset the price difference. The gas stations here that have a difference usually keep it less than 10 cents, so it works out well for me. However, if you don't have a CC with decent gas rewards, you could always get a gas card for the station you frequent most often; gas stations tend to charge the cash price for their own CCs.
I think aside from rewards, you're much safer using a CC at a gas pump. If your card ever got skimmed from one of those in-pump readers, it's much better to have a CL compromised instead of a bank account. Cash is fine, but CC is certainly faster.
@sportsguy83 wrote:I’ve wondered about this too but found its worth it if you do the math. I guess it really depends on how much more it is to use a credit card – around here it is usually only a 10 cent/gallon difference. So if you have a Chase Freedom (or something similar) which gets 5% two quarters out of the year it saves you more. Let’s say you are charged an extra 10 cents/gallon for using a credit card. If you buy 16 gallons you pay an extra $1.60 just to use your credit card. If gas is $4/gallon that is $64. 5% of that is $3.20 – more than the extra you are paying to use your credit card. Even a card that gets only 3% back (more common) would be better by 30 cents under that scenario.
And if you use Freedom as UR points, with a transfer card, the points are worth more than 1c, so it is even more worthwhile.
@PlasticOrPlastic wrote:
@subwaysandwich wrote:
It's usually like 10 cents more just for using credit cardTheres no difference by me for paying with a card so I guess its worth it for me. Currently gas is sitting at $3.64 so a tank of gas earns me just under 3 bucks on my Discover or Sallie card. Adds up fast for summer months when I feel like I'm constantly filling up.
Same way here, same price either way. It's worth it, but I only spend about $140/month on gas
Just curious where do you guys live that they charge 10 cents a gallon to use credit? That seems insane to me....