AmEx Simply Cash Scales Back Gas Rebate, Blue Cash Still Offering 5% Rewards
A few months ago, I predicted that credit cards offering 5% cash back rewards on gas purchases would begin scaling back their rewards programs. This was back when gas prices were hovering around $3.40/gallon. As you are no doubt aware, gas prices are now 15-20% higher than that, and we now have our first victim…
American Express has announced that they are reducing the reward on gas purchases made with the AmEx Simply Cash Business Card from 5% to 3% effectively immediately. They’re also limiting the 3% cash back tier to the first $12k in gas purchases per year, though this is unlikely to affect very many individuals.
So what should a credit-savvy driver do? Simple. Switch to different gas rewards credit card. There are still some great options out there. For example, Blue Cash from American Express.
I’ve written extensively about the AmEx Blue Cash rewards card in the past. This card offers one of the best cash back rewards programs available. Here’s the scoop…
For your first $6500 in annual purchases with the Blue Cash Rewards card, you’ll receive 1% cash back at gas stations, grocery stores, and drugstores and 0.5% everywhere else. But once you get past the $6500 threshold, you’ll receive 5% cash back on gas, grocery, and drugstore purchases and 1.5% on everything else. With gas hovering around $4/gallon, that translates into a savings of $0.20/gallon just for swiping your card. Another great thing about this card is that there is no limit on the amount of rewards you can earn.
Another possibility is the Discover Open Road Card. This card offers 5% cash back on gas purchases as well as automotive service, and it also has a 0% balance transfer offer. On the surface, this sounds nearly as good as the Amex Blue Cash card. There is, however, a catch… The 5% reward tier applies only to your first $100 in qualifying purchases per month. Given current gas prices, and assuming that you get decent mileage, you’re probably better off with a different card if you drive more than 500-750 miles per month.
A final suggestion is the AmEx Costco True Earnings card. This is technically a business card but, as I’ve pointed out in the past, anyone can apply for a business credit card. The beauty of this card is that it gives you a 3% discount on the already cheap gas prices at Costco (as well as elsewhere). You also get 3% back at restaurants and 1% on all other purchases. If you’re already a Costco member, the True Earnings card is definitely worth checking out. Unfortunately, our nearest Costco is close to an hour away.
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My heart is literally breaking right now.
I JUST applied for the SimplyCash (in fact, it’s supposed to arrived any day now) for the 5% and now I find this news.
I don’t know if I should smile at the timing or weep for my bad luck!
Comment by EN — Jul 2nd 2008 @ 12:58 amActually, I should take this chance to ask….do you think it’s a good idea to cancel the card once it comes? I have no use for it outside of the gas rewards. If I don’t activate it, is it considered unusable?
Comment by EN — Jul 2nd 2008 @ 1:00 am“I don’t know if I should smile at the timing or weep for my bad luck!”
If you don’t laugh, you’ll cry… In all seriousness, I’m sorry to hear of your bad timing. A couple of thoughts:
You might be able to convert it to a Blue Cash card by calling customer service. I did this with an older AmEx Optima card. The problem here is that Simply Cash is a business card, and they might not let you convert it to a consumer card. But it’s worth a shot.
As far as cancelling it when it comes, that’s up to you. Your credit report has already been accessed, so the application will show up whether or not you activate that card. But if you’re truly never going to use it, then you might want to cancel for peace of mind (but definitely try converting it first).
Thanks for the reply. I would try converting in a heartbeat if only my spending patterns allowed for me to maximize the use of the Blue Cash card.
I don’t have enough uses for the card to charge $6500 so I’m not in the big spender category.
I’m not too fond of canceling cards, especially since I tend to take the time to research them, but I can’t seem to find a good enough reason to keep SimplyCash outside of having an AmEx card available.
Well, I guess I’ll see once the card arrives in a few days. I could always try converting and keep the card around once my spending needs increase in the future.
Anyhow, thanks again for the thoughts. I did end up laughing (if only to hold back the tears)
Comment by EN — Jul 2nd 2008 @ 9:09 pmHi I just wanted to let you know that the AMEX True Earnings Business Costco Card offers 5% cash back on gas, and the consumer True Earnings offers 3% cash back on gas, all other cash back percentages are the same for both.
Comment by Rocio — Jul 16th 2008 @ 1:46 am