ByKELLI B. GRANT
Updated on January 27, 2009.
LEAVING THE CAR at home and commuting to work on the subway, bus or train can save some serious cash, but not just when it comes to gas. Cities, local transit authorities and even credit-card issuers are offering cash and other rewards to commuters who dump the daily drive and ride with the straphangers.
It's not exactly a hard sell. Public transit ridership is at its highest level in 50 years, according to the American Public Transportation Association, an industry group. In the third quarter of this year, riders took 6.5% more trips on subways, commuter rails, streetcars, trolleys and buses than they did during the same period in 2007.
One thing commuters are discovering, however, is that while using public transit is comparably less expensive than driving a car, it's by no means cheap. The same high fuel prices that incited people to seek out commuting alternatives are also crunching transit authorities' budgets, says Mantill Williams, a spokesman for the APTA. Increased ridership requires new railcars, additional maintenance for buses and plenty of pricey diesel fuel. As a result, 43% of transit systems nationwide raised fares in 2008.
To help alleviate the impact of those fare hikes, city governments, public transit groups and credit cards are offering reward programs that can result in substantial savings. For example, Atlanta residents who switch to public transit from a solo car commute can earn up to $180 over three months through a community-development program.
Here are some programs and rewards commuters may find worthwhile:
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Commuter Credit Cards | |||
|
If commuting costs are killing your monthly budget, consider applying for a transit rewards card, says Curtis Arnold, founder of credit card information site . "You don't have to be married to one credit card," he says. That's a good thing, because these specialty rewards cards carry fairly high APRs. Use them, but remember that the standard caution applies: The only way you'll truly reap the rewards is by paying off your balance in full every month. | |||
|
Credit Card |
Annual Fee |
Interest Rate |
Details |
|
Chase Amtrak Guest Rewards |
None |
12.24% variable |
Earn two points for every dollar spent on Amtrak and one point per dollar spent on other purchases. After the first purchase, earn 5,000 bonus points. A minimum of 1,000 points is required for a free coach ticket on select lines. |
|
Citi Premier Pass Elite |
$75 |
12.24% to 16.24% variable |
enough for $200 gift certificates for retailers like Barnes & Noble orMacy's ). |
|
* Data from individual card issuers. |
|
City-Specific Commuter Rewards | ||
|
Check in with your local transit companies and city government about local discount or rewards programs, advises Williams. Even may be able to help. Many transit authorities partner with local companies to offer passes at reduced prices. | ||
|
City |
Sponsor |
Details |
|
Atlanta |
Switch from driving solo to carpooling, public transit, biking, walking or telecommuting and earn $3 per day for the first three months of membership, up to $100. Members of this program, which is sponsored by local businesses, also get discounts on area transit, including 30% off a 20-trip bus pass for Cobb Community Transit ($32.90 instead of $47). | |
|
San Francisco |
Using the BART Rider Rewards MasterCard from Chase, earn five points per dollar spent on BART tickets, reloadable transit passes and reserved parking permits purchased online. Commuters will also earn two points per dollar spent at entertainment venues, and one point per dollar spent on other purchases. 2,500 points can be redeemed for a $25 BART card. The card has no annual fee, and carries a variable APR of 10.24% to 18.24%. | |
|
Seattle |
This Commuter Cash program sponsored by the city government offers up to $150 to those who reduce the number of days they drive alone to work. Those who switch to carpooling or public transportation in February can earn $60 by the program's April 2009 cutoff. There's also a $20 award for each referral. | |
|
Stockton and San Jose, Calif. |
Purchase 11 consecutive monthly railway passes from this local commuter line and get the 12th free. (One monthly pass from Stockton to San Jose, for example, is $282.50.) | |
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* Data from individual card issuers. |
Corrected on Aug. 4, 2008, to reflect the correct year-over-year increase in public transportation ridership during the first quarter of 2008.
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