To get 5% cash back on gas, the most common and effective method is by utilizing specific credit cards designed to offer bonus rewards on gas purchases. These cards often fall into categories that provide elevated cash back rates for spending in particular areas, such as gas stations.
Leveraging Credit Cards for 5% Cash Back on Gas
The primary way to earn 5% cash back on your gas expenses is through credit cards that offer bonus rewards in spending categories like gas.
Citi Custom Cash® Card: A Top Choice for Gas Rewards
One of the best options for consistently earning 5% cash back on gas is the Citi Custom Cash® Card. This card is unique because it automatically adapts to your spending habits, offering elevated rewards in your top eligible spending category each billing cycle.
How it works:
- 5% Cash Back Category: The Citi Custom Cash® Card provides 5% cash back on your highest eligible spending category, up to the first $500 spent per billing cycle.
- Eligible Gas Category: Gas stations are one of the key eligible categories. If gas is where you spend the most money with this card in a given month, you'll automatically earn 5% back on those purchases.
- Maximum Monthly Rewards: If you primarily use the card for gas and reach the $500 spending cap, you can earn up to $25 cash back per month on gas purchases alone. This makes it an excellent choice for individuals or families with significant monthly gas expenses.
Other Credit Card Options for Gas Rewards
While the Citi Custom Cash® Card offers consistent 5% back on your top category including gas, other types of credit cards can also provide high cash back rates on gas, often through rotating categories or specific programs:
- Rotating Category Cards: Cards like the Discover it® Cash Back or Chase Freedom Flex℠ often include gas stations as a 5% cash back category during specific quarters of the year. You typically need to activate these categories each quarter to earn the bonus rewards.
- Gas Station Co-Branded Cards: Some specific gas station brands offer their own credit cards that might provide higher rewards rates (e.g., 3-5%) on purchases made at their stations.
- Tiered Rewards Cards: A few cards offer tiered rewards, where gas might be a consistent 3% or 4% category, which, while not 5%, is still a significant boost over standard 1% cash back.
Maximizing Your Gas Cash Back
To ensure you're getting the most out of your gas rewards, consider these practical tips:
- Understand Spending Caps: Always be aware of any spending limits on bonus categories. For example, the Citi Custom Cash® Card's 5% back is capped at $500 per billing cycle. Once you hit this limit, subsequent gas purchases will earn the standard 1% cash back rate.
- Designate a Card for Gas: If you have multiple credit cards, consider dedicating a card like the Citi Custom Cash® Card primarily for gas purchases to ensure it becomes your top spending category for that card, thus triggering the 5% reward.
- Check Category Definitions: Be mindful of how credit card companies define "gas station" purchases. Gas bought at a supermarket or warehouse club might be categorized differently (e.g., as groceries or warehouse club purchases) and may not qualify for the gas bonus unless that specific category is also earning elevated rewards.
- Activate Rotating Categories: If using a card with rotating bonus categories, remember to activate the gas category each quarter it's offered to ensure you receive the higher cash back rate.
- Monitor Your Spending: Keep track of your monthly gas expenditures to know when you're approaching any spending caps, allowing you to optimize your card usage.
By strategically using credit cards designed for bonus rewards on gas, particularly those that offer flexibility like the Citi Custom Cash® Card, you can consistently earn 5% cash back on your fuel purchases.
