Credit card programs can help reduce cost of gas

The rebates work in different ways, depending on the card. With the AAA card, offered through MNBA, the rebate shows up as a credit on the monthly bill. Users of the BP credit card, offered through Chase Card Services, earn their rebates in the form of periodic gift cards good for purchases at BP stations.

Bob Siley, 66, of Talleyville, Del., said he has been using his BP credit card for a decade to get rebates on gas purchases. The 3 percent rebate has been especially welcome over the last year as gas prices zoomed higher, he said.

''Every little bit helps,'' Siley said.

But some consumers are skeptical. Rob Smith, 40, of Wilmington, Del., said gas prices are definitely a burden -- he estimates it costs him $80 to fill up the tank of his Dodge Ram pickup. He doubts, though, whether a single-digit rebate would make much of a difference, and he is wary of the interest and fees that go along with credit cards.

''The rebates aren't enough to get me to sign up,'' Smith said. ''I'd like to get rid of the credit cards I have, not add another one.''

Keep balance down

Consumers are wise to proceed cautiously when it comes to credit cards with gas rebates, said Greg McBride, an analyst with North Palm Beach, Fla.-based Bankrate.com. He said the gas-rebate cards can be beneficial, but only if the cardholder avoids carrying a balance from month to month.

''If you carry a balance, then the interest charges you'll have to pay will more than offset the value of the rebate,'' McBride said.

Lisa Lee Freeman, deputy finance editor for Consumer Reports magazine in Yonkers, advises prospective cardholders to take the time to thoroughly understand the terms of the gas rebate credit cards. Some of the cards offer relatively high ''teaser'' rebates that then drop by half after a few months, she said.

Freeman also recommended checking to see what the annual fee policy is. With the Chase PerfectCard, for example, consumers have to use the card at least nine times a year to avoid a $19 annual fee.

''The big lesson we found is that there is a lot of variation with these cards,'' Freeman said. ''These gas cards can be a win for consumers, but you've got to watch out because the cards can have strings attached.''