There are some hidden features that credit cards offer to their owners. One such feature is a gas price reduction. In this article, we will review three credit cards that offer gas price reductions which is a great perk for ride-share drivers that use a lot of gas.
Credit Card Rewards
Many credit cards offer buying incentives in the form of reward points. These points are amassed and then used to buy goods, services and other useful things such as cash back for gas purchases. Another byproduct of credit card spending is your credit score, which will improve if you pay all your bills by credit card on time. A good credit score brings with it reductions in insurance rates, interest rates, and even global travel rewards.
Business Credit Cards
Rideshare drivers, being business owners, and of course, depending on how you are registered (sole proprietorship, LLC or S-Corporation), all qualify for a Small Business Credit Card (SBCC). UberBlack and UberSUV drivers will realize the full potential of these cards due to the nature of their business requirements.
By taking an SBCC, a driver can separate their expenditure from their work expenditure, which is a must and also a great way of assuring that the ride-share credit card covers all paid for expenses during a ride-share shift.
Drivers don't need an SBCC so much as they need a different credit card for each activity focus.
Chase Ink Cash Card
The Chase Ink Cash Card is an SBCC which means you need to register for it via a business and not personal, as a sole proprietor you will only need your SSN and Tax information.
This card gives a whopping 10% return for the first three months of use after spending $3,000. This refund means you get back $300 as a one-time incentive for using the card within three months of receiving it. This reward is just the beginning; card owners get 2% cash back on all fuel purchases up to a $25,000 cap. Which means you can save up to $500 if you purchase fuel and spend money on the restaurant (added into the equation). This 2% is automatic, comes with the card. If you decide to enroll (its free) in Visa Savings Edge, you will add a further 1% cash back from Texaco and Chevron gas purchases.
Cashback is redeemed every $20 earned, and that can be deposited directly into most US bank accounts.
The major Chase Ink Cash Card rewards are:
- No card fees.
- 30,000 reward points (Chase Ultimate Rewards) for the first $3,000 spent in 3 months from receiving the card. (that's $300 cash back)
- 5% cash back on the first $25,000 used to buy cell phone, landline, internet and cable TV services as well as office supplies. (renewable every card year)
- 2% cash back on the first $25,000 used to buy gas or in restaurants. (renewable every card year)
AMEX blue cash card
There are two types of card, the Everyday card, and the Preferred Card. Both are Amex Blue cards, and offer the following rewards:
AMEX Blue Cash Everyday Card
- 10% statement credit on the first $1,000 spent during three months from receipt of card (total reward of $100)
- 3% cash back rewards at all US supermarkets and up to $6,000 per credit year, after which it adjusts to 1%.
- 2% cash back reward in all US gas stations.
- 1% cash back reward on all another card spending
- No card fees
AMEX Blue Cash Preferred Card
- 15% statement credit on the first $1,000 spent during three months from receipt of card (total reward of $150)
- 6% cash back rewards at all US supermarkets and up to $6,000 per credit year, after which it adjusts to 1%.
- 3% cash back reward in all US gas stations.
- 1% cash back reward on all another card spending
- There is a $95 annual fee
Both cards require the owner to have at least $25 in reward cash before redeeming the money.
US Bank Business Edge Cash Credit Card
This powerful little card offers some incentives including:
- A $150 cash return for spending $500 during the first 90 days of receipt of the card. (That's a whopping 30% return)
- 3% cash back rewards for all spending up to a total return of $250
- No card registration fee
You don't need to limit yourself to one card; you can stagger them, applying for each card once every three months are giving you a $400 income in the first year, and using each card to the limit of the highest reward, maximising the percentage cash return. You will need to open a spreadsheet or use an app like QuickBooks Self-Employed to follow each cards spending and reward, but it will pay off, and with intelligent usage, a driver can save anywhere up-to $700 and above per annum.
The downside is meeting debts head on; you must never overspend and never be in a situation where you will not be able to meet a payment. Your credit score is vital; it is a life-changing rating. The higher a credit score, the more chance you will have to acquire loans, leases, real-estate deals and even jobs.
Credit cards are a double-edged sword in that they do urge the less controlled person to spend without having cash ready to spend. The first rule a credit card is; Only spend if you have the cash to buy. In other words, if you didn't have a credit card, would you be able to buy the item, and if so, would you be able to afford to buy it in one lump sum.
Spreading a lot of purchases over installments is the first way to insolvency.