There are two possible credit cards that I knew about that give good rewards for gas purchases (not including rotating 5% categories) and cary no annual fee:
- PenFed Platinum Cash Rewards Visa - 5% Cashback at gas stations
- There was a recent devaluation of their points so that their true value is about 4.2%. You can read about it on FatWallet.
- Bank of America Cash Rewards 3.3% Cashback at gas stations.
- 3% at gas stations, but you will get a 10% bonus on any rewards redeemed into a Bank of America checking account.
A reader, JF, pointed me to a credit card which I didn't know about that is even better for some people.
Introducing the Bank of America Privileges Card. It is the same 3% back at gas stations, but instead of a 10% bonus into a Bank of America checking account, you will get a 50% bonus! That is effectively getting 4.5% cashback on gas purchases!
A few things to note:
- Annual Fee
- The card is open to all, but unless you have $50,000 with Bank of America or its Affiliates (includes Merrill Lynch), there is a $75 annual fee the second year. The annual fee is waived every year if you have $50,000 with them.
- I would not get the card unless you already have $50,000 with Bank of America that you aren't planning on moving. The extra 1.5% is not worth the $75 annual fee.
- Your base rate of 3% doesn't change, all the changes is your bonus. Therefore, any rewards you have built up before you switch to the privileges card should be redeemed at the higher 4.5% rate.
- If you already have a Bank of America Cash Rewards card you can call up and have your card automatically switched into a Bank of America Privileges card.
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