bank rates

Capital One Card Pays 2% Rebate On Gas

With gasoline prices pushing above $3 a gallon on average for the first time since 2008, credit card companies are upping the rewards offered for gas purchases.

With gasoline prices pushing above $3 a gallon on average for the first time since 2008, credit card companies are upping the rewards offered for gas purchases.

One of our favorites is the Capital One No Hassle Cash Rewards card. Not only does it pay 2% on gas purchases, but it also pays that rate at major grocery stores – two categories that use up a lot of your budget.

You get 1% cash back on all other purchases.

You can get your cash back in the form of an account credit, a check or a gift card. The cash rewards never expire and there is no limit on how much you can earn. You can redeem your cash rewards anytime for any amount.

In addition to earning cash, this card has other great features.

There are no annual fees or balance transfer fees.

That’s a big advantage when you’re transferring thousands of dollars and paying 3% to 5% on the amount to do so. Transfers do carry an APR between 12.9% and 20.9 percent, depending on your credit history.

You also get 0% APR on purchases until December 2011. When the introductory 0% offer ends and the regular APR kicks in, it will mirror the balance transfer APR of 12.9%, 16.9% or 20.9%, depending on your credit history. (That’s the prime rate of 3.25%, plus 9.65%, 13.65% or 17.65%.)

By today’s standards, those aren’t bad rates.

Click here to compare Capital One’s deal with the best rates and terms from scores of other credit cards in our database.

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Comments (4)
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4 Existing Comments
  1. Brian92103 said:
    on January 6th at 12:58 pm

    Not bad but my Chase Freedom pays 5% back on gas year around, 5% currently on up to $1500 in quarterly purchases on grocery & drug stores and 1% on everything else. Bonus categories change quarterly.

  2. Anthony said:
    on January 6th at 01:04 pm

    Brian,

    The Chase Freedom only pays 5% back on gas 3 months out of the year with the quarterly purchases you mentioned. The only 9 months is just 1% on gas

  3. JW said:
    on January 7th at 02:30 pm

    Another benefit of this card is that there are no foreign-exchange fees. Pretty much every major credit card issuer (except for Capital One) charges forex fees of 2.0% to 2.7%.

    This is the perfect card to take when going abroad.

  4. Craig C said:
    on January 10th at 02:26 pm

    PNC Everyday Rewards Visa┬« Credit Card pays 4% on gas (up to $250), 3% on cinema and movie rentals (up to $150) and 2% on groceries and restaurants (up to $750), .25% on 1st $10,000 other – 1% after 10,000 annual purchase.