If you'll be spending part of this July 4th weekend in the car—whether that's for a day trip to the beach or a 500-mile drive to visit the in-laws—be prepared to pay more at the pump this year than last. A gallon of regular gasoline sits at $3.70, according to the U.S. Energy Information Administration, or about 9% higher than in 2013.
Those in the know, however, will be able to get a discount that mitigates the price escalation. How, you ask? With a cash back rewards card that gives them some extra juice at the gas station.
The picks that follow can get you up to 5% back on your purchase at the pump. You'll notice something about these selections: None of them are gas-station-branded cards. The ones below offer more flexibility and more money back.
If you want to get the most money back possible...
We at Money are pretty big fans of the class of credit cards that offer 5% cash back in rotating categories. Within the category, both the Chase Freedom and Discover It offer 5% at the pump from July to September on the first $1,500 spent. That means if you spend $250 a month on gas, you’ll end up saving almost $40.
If you’re planning a cross-country road trip, it might pay to sign up for both. The Freedom and It cards are fee-free, so there’s no downside to doubling up.
But if you're only planning on getting one, go for the Chase Freedom, which offers a $100 sign-up bonus after you spend $500 in the first three months, says CreditCardForum.com’s Ben Woolsey.
If you'd rather have an all-purpose card...
Managing a number of credit cards for specific categories can be daunting for some consumers. If that’s you, check out solid cash back cards that offer good rewards throughout the year. BankAmericard Cash Rewards holders, for instance, earn 3% on the first $1,500 spent at gas stations the entire year without having to pay an annual fee. There’s also a $100 sign-up bonus once you spent $500 in the first three months.
Also consider Money’s Best Credit Card winner American Express Blue Cash Preferred. While this card comes with a $75 fee, you receive 3% back at gas stations in addition to a $150 sign-up bonus if you spend $1,000 in the first three months. Where it comes out ahead of the BankAmericard is if you'll also use it at the supermarket, since the best feature of Blue Cash Preferred is the 6% cash back you get on the first $6,000 spent on groceries.