Lately with the high gas prices and stations charging more for credit, it is time to look at when it is a good time to use pay with cash or not.
Most of the gas station spreads between cash and credit is $.10 so that will be what I use for this analysis on 5% and an “average” card rewards with 2%
As you can see, when gas is above $2, using 5% back is worthwhile. 2% won’t see any gains until gas is at least $5. For me, I always use my Chase Freedom with the gasoline quarter promo because once gas is over $2, 5% is break even.
Pentagon Federal has a 5% cash back credit card for gas purchases. I’d insert the link into this post; however their SSL certificate needs to be updated, so I will wait until they correct it before linking them. For PenFed, you do not need to be in the military or work for the Pentagon, you just need make a donation to join this credit union.
