| Credit cards combat gas price
hikes
Many offer cash rebates
By Jeff Bollier
of The Northwestern
Eric Kallman
doesn’t even like to think about a trip to the gas pump.
The Oshkosh resident said he empties $60 to $80 out of
his pockets just to fill up his Chevy Tahoe every couple
of weeks.
“It takes a lot of money I could spend other ways,”
Kallman said.
But Kallman also takes careful advantage
of rebates most major gasoline retailers have offered as
prices at the pump continue to turn gas stations into
ghost towns.
Gas companies such as BP, Citgo, Shell, Mobil, Marathon
and Kwik Trip offer up to 10 percent or up to
5-cents-per-gallon as a rebate on gas purchased with
their credit cards as prices continue to approach $3 per
gallon. The offers sound good and help offset high
prices, but rebates sometimes come with catches or only
will last for an introductory period of three to six
months, Financial Information and Service Center
Education and Marketing Manager Alan Prahl said.
“Anytime we use them, we’re taking out a loan and it’s
very easy with the price of gas for people to charge $80
to $100 in gas each week,” Prahl said. “Suddenly, they
could have $300 charge card bills in one month.”
That may sound a little much to spend on gas, but it’s
becoming easier with self-service unleaded gas selling
for $2.70 per gallon at most Oshkosh stations Tuesday
afternoon. Kallman said the key with gas cards is making
payments that cover most or all of the balance.
“I have quite a few of the cards,” Kallman said. “If you
pay the bills on time you see the savings and rebates.
Of course, if you don’t pay your bill, the savings go up
in smoke.”
With BP cards, the 6 percent rebate drops to 3 percent
after 90 days while new Mobil Speedpass accounts knock 5
cents off each gallon purchased in the first 90 days,
but the rebate caps savings at $20. Marathon credit
cards offer a 10 percent rebate for the first 60 days
and 5 percent afterward on gas purchases.
Financial advisor Betty Adams said low introductory
interest rates often increase after a few months and can
cause even more trouble if it goes unnoticed.
“It’s very complicated,” Adams said. “You have to read
the fine print carefully.”
Some people like Oshkosh resident Douglas Denny avoid
gas cards and gas purchases as much as they can now that
prices continue to set record highs in the area by
simply not driving at all. Prahl said he’s talked with a
lot of people who have cut discretionary trips out of
their summer plans because prices have risen so high.
“I do a lot of taxicab or bus rides and get around with
the help of my friends and family, so I’ve been able to
save quite a few dollars that way,” Denny said. “I try
to drive as little as possible.”
Jeff Bollier: (920) 426-6688 or
jbollier@thenorthwestern.com
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