How Do Gas Credit Cards Work
Itll be no surprise to hear that gas credit cards reward those who use them when they fill up their vehicles at gas stations.
The best gas credit cards offer at least a 3% return in rewards on gas purchases and arent usually affiliated with any specific gas retailer meaning there are no brand or location restrictions your cash back or points earning. These cards also often have perks for spending in other categories like groceries, travel and leisure.
Related: How to save money on gas
Penfed Platinum Rewards Visa Signature: Best For No Cap
Although the PenFed Platinum Rewards Visa Signature card isnt mentioned often, its a top contender when it comes to gas purchases. It earns 5 points for every dollar you spend on gas with no cap to the amount you can earn. To top it off, youll also earn 3 points per dollar at the supermarket , restaurants, and TV, radio and cable streaming services.
Unfortunately, theres no option to redeem your PenFed Platinum Visa points for cash back, and PenFed doesnt have any airline or hotel transfer partners. Instead, points can be redeemed for gift cards, merchandise and travel booked through PenFed. Theres no set redemption value, but typically, travel redemptions will give you the highest value.
The limited redemption options of the PenFed Platinum Visa is the main reason this card isnt higher on our list. And theres a big catch even though the card doesnt carry an annual fee, you must join PenFeds credit union to be eligible for the card. But with all that said, if youre willing to redeem your PenFed points for travel, you can typically get more than 1 cent apiece for your points, which makes the card worth considering.
Choosing The Right Gas Credit Card For You
When choosing a gas rewards credit card, ask yourself the following questions:
- Do you usually fuel up at one gas station chain or different ones?
- Are you willing to pay an annual fee?
- What additional categories would you like to earn rewards in?
- Does the card youre applying for offer a good sign-up bonus?
Doing your research ahead of time is important, especially if youre considering a card that charges an annual fee. By answering the questions above, youll be able to identify which card on this list is best for your spending habits.
To see rates & fees for the Blue Cash Preferred® Card from American Express please click here.
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Best For Business Gas Rewards: Marriott Bonvoy Businessamerican Express Card
Earn 75,000 bonus Marriott Bonvoy points after you use your new Card to make $3,000 in eligible purchases within the first 3 months of Card Membership. Plus, earn up to $150 back in statement credits on eligible purchases made on your new Card within the first 3 months of Card Membership.
|Rewards Earning Rate||Earn 6x points at hotels participating in the Marriott Bonvoy program. Earn 4x points at U.S. restaurants, at U.S. gas stations, on wireless telephone services purchased directly from U.S. service providers and on U.S. purchases for shipping. 2x points on all other eligible purchases.|
|Cash Advance APR|
- Why We Chose This Card
- Pros & Cons
We chose the Marriott Bonvoy BusinessAmerican Express® Card as the best business gas rewards card due to its ongoing and unlimited 4x points earnings at U.S. gas stations and the excellent per-point value of Marriott Bonvoy points when redeemed toward hotel stays. This card can be a good pick for small-business owners who spend a significant amount on gas each month and can further augment their earnings through Marriott stays, which earn 6x points. Business owners can also turn employee spending into additional points with complimentary employee cards.
Outstanding rewards on Marriott stays and select spending
Complimentary Marriott Bonvoy Silver Elite status
Bonus night on card anniversary
Annual free night is capped at 35,000 points
Dismal rates on non-Marriott redemptions
Can I Get A Gas Credit Card With Bad Credit
The best gas credit cards are likely to require good to excellent credit, which is typically considered a FICO Score of 670 to 850. However, if you have a poor or fair credit score, a better choice might be a secured credit card, which will require a security deposit in the amount of your desired credit limit, but can help you rebuild a poor credit score through responsible usage. For example, the Discover it® Secured Credit Card offers 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, 1% unlimited cash back on all other purchases – automatically.
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If You Spend Much Of Your Day On The Road You Could Save Money At The Pump With A Gas Credit Card
Heres our list of the best gas credit cards for 2022.
Heres why: This card offers serious rewards if gas is your biggest expense every month.
The Citi Custom Cash Card automatically gives cardholders 5% cash back on up to $500 spent in their highest eligible spending category each month. Those categories include gas stations, so you could earn up to $25 in cash back any month you spend $500 on gas.
Just keep in mind that you earn only 1% on all other purchases, so you wont get much cash back on gas if you spend more in another eligible category.
Plus, youll earn $300 in cash back after spending $1,000 on purchases in the first 3 months after your account opens.
The card also comes with a $0 annual fee.
For more details, read reviews of the Citi Custom Cash Card.
Verdict: Great Rewards On Business And Gas Spending
If you’re looking for the best gas card for small business, the Bank of America® Business Advantage Customized Cash Rewards Mastercard® credit card is an excellent choice. With this card you’ll Earn 3% cash back in the category of your choice , 2% cash back on dining purchases and 1% cash back on all other purchases
You can change your category once each month, or keep the same category. Because travel is one of the category options, we argue this card is also the best travel rewards credit card for gas.
Maximize rewards: You can earn up to 75% more cash back on every purchase if you have a business checking account with Bank of America and qualify for their highest Preferred Rewards for Business tier. That means you could earn up to 5.25% on your selected choice category, 3.5% on dining, and unlimited 1.75% cash back on all other purchases. Redeem your cash back as a deposit into your Bank of America checking or savings account, as a card statement credit or as a check mailed to you. Cash rewards don’t expire.
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How To Decide: What Is The Best Credit Card For Me
To decide which credit is the best for you, you need to look at your priorities. If you normally carry a balance or you want to reduce your debt, then a low-interest or balance transfer card should be the only types you consider.
People who always pay off their full balance every month need to decide whether a travel or cash-back card makes more sense for them. Travel cards can offer lucrative rewards, but if you dont like to travel, theres no point in you getting a travel credit card. If this sounds like you, then a cash-back card may be the way to go.
Now that youve got your category of card selected, take a look at the earn rate, additional, benefits and which type of points you earn for each card. If you happen to spend a lot on gas and groceries, then look for a card that has a high earn rate for those categories.
The annual fee should also be a consideration in your decision making, but if you think youre getting good value out of your additional benefits and youre making more back than you paid with the fee, then it shouldnt be a big deal.
How To Choose Between A Gas Rewards Card And A Rebate Card
A fleet fuel card only makes sense if you’re a business owner who wants to track gas purchases while earning fuel discounts. However, regular consumers still have to decide which type of gas credit card to get a gas rewards credit card or a gas rebate card. From there, there are several important steps to take.
General rewards credit cards are a good option for everyday spending and bills, whereas gas rebate cards may only be good for fuel and gas station purchases.
Check your credit score
Traditional rewards credit cards are typically geared to consumers with good or excellent credit. But you may be able to qualify for a fuel-only credit card or co-branded gas station credit card if you have “fair” or okay credit.
Determine your level of brand loyalty
Gas rebate cards are best for consumers who are loyal to a specific gas station or chain. A regular rewards credit card makes more sense for people who fill up their tank with different gas brands all the time.
Compare rewards with rebates
Rewards can often be redeemed for cash back or statement credits as well as for other things like gift cards, merchandise or travel. Rebates come in the form of fuel discounts, so you cannot save them up to spend later.
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What Else Should You Know About Credit Cards
Long introductory-period APR rates are only a short-term incentive. Potentially high-APR rates snap into effect after the intro period ends, which could cost you a lot in interest if youve left your balance unpaid. Its really importantespecially when getting a card for a big purchaseto keep an eye on your finances and keep an eye on the calendar.
Banks have final say on who they accept for a credit card. These recommendations were put together with the assumption that applicants would have average or excellent credit. That being said, banks decide who they will issue credit cards to using criteria including but not always limited to an individual’s credit score when evaluating each applicant.
Verdict: High Rewards Rates In Many Everyday Spending Categories
The Blue Cash Preferred® Card from American Express is a great product for consumers who fill up their car regularly. This card is also great for families, who are likely to spend heavily in its bonus categories, especially U.S. supermarkets and streaming services. The card has a $0 introductory annual fee for the first year, then $95, which may be well worth it if you spend a lot on supermarkets and gas you’ll be able to earn hundreds of dollars per year in valuable cash back.
You’ll earn 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases , 6% Cash Back on select U.S. streaming subscriptions, 3% Cash Back at U.S. gas stations and on transit , 1% Cash Back on other purchases. Terms apply. Your rewards can easily be redeemed for statement credits to cover your purchases.
Maximize rewards: The best way to earn more cash back with this card is to focus on the categories where you earn the most, including at U.S. gas stations and U.S. supermarkets.
For rates and fees of Blue Cash Preferred® Card from American Express, please click here.
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Scotiabank Gold American Express*
If youre looking to turn your fuel purchases into points, look no further than the Scotiabank Gold American Express credit card. This card operates within the Scotia Rewards program, which allows collectors to redeem their points for travel rewards, merchandise, gift cards and even credit to put against your card balance.
Cardholders earn 3 Scotia Rewards points on every $1 spent on eligible purchases including gas, public transit and streaming services, and 5 points per $1 on groceries, restaurants and entertainment. Double-dip with the gas points program of your choice and earn even more.
- Annual fee: $120
How Does Credit Card Interest Work
Despite the term annual percentage rate, credit card issuers calculate interest daily. The daily periodic rate is determined by dividing your APR by 365 days, which is then applied to your average daily balance. Crunch this number by adding up the total you carry each and every day of the billing cycle, then dividing that by the number of days in the billing cycle.
Lets say your APR is 16%, and this month you carried an average daily balance of $2,000. The issuer first calculates the daily periodic rate . That rate is applied to your average balance , which brings us to 0.87. Over the course of the 30-day billing cycle , youll pay $26.30 in interest.
If crunching numbers isnt really your thing, some issuers include tools that calculate how much interest youll owe based on your monthly payment. Petal, for example, shares this information in a mobile app for its two credit cards.
Remember: You wont be charged interest if you pay off your balance in full and on time each billing cycle. We get that life happens. So if on occasion thats not possible, consider paying more than the minimum amount to lessen the interest youll pay over time, or make more than one payment during the billing cycle to lower your average balance.
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How Long Does It Take To Get Exxon Credit Card
How long does it take to get approved/receive card? The ExxonMobil BusinessPro card issuer intends to approve all applications within 48 hours from receipt of a completed application. Once the account is approved, cards can be printed and issued within seven days.
How Gas Credit Cards Work
Gas credit cards work just like any other credit card in your wallet, except that they offer additional rewards when making purchases from a gas station. These cards typically have a Visa, Mastercard, or American Express logo on them and can be used anywhere those cards are accepted. The rewards earned are typically cash back, airline miles, or hotel points and can be redeemed in a variety of ways.
These are the differences between points, cash back, and discounts that you may earn with your gas credit card:
- Points: Points are often flexible rewards that can be redeemed in a variety of ways, such as hotel rooms, products, or cash back.
- Cash back: When your card earns cash back, it can be spent however you choose. Redemptions typically are credits to your statement, deposits to your bank account, or a check that is mailed to your billing address.
- Discounts: Some rewards are limited in scope and may only be redeemed towards future purchases. Discounts may require that you spend a certain amount per transaction before the discount becomes eligible.
The best credit cards for gas include:
- Bonuses for spending on gas
- Additional rewards for other categories that matter to you
- No annual fee or benefits that justify the fee
- 0% APR promotional offer
- Reasonable standard APR on purchases
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How To Use A Gas Credit Card
Using a gas credit card is quite simple. Next time you visit the pump, just swipe and fill your tank.
But long before you hit the road, research which gas credit card will benefit you most.
Using a gas credit card is ideal to reach a specific goal like saving money or earning travel rewards to take a vacation.
Some of the cards above have limits on how many rewards you can earn at gas stations. If you spend a significant amount of money on gas each year, it may be best to avoid those cards.
It’s also worth noting that you can sign up for a gas station rewards program to help you double-dip your savings. The best gas rewards programs include big gas brands, like BP or Shell, and will help you earn discounts on gas purchases.
When Is A Credit Card For Gas A Good Idea
Gas credit cards are a good idea when you spend a lot on gas and you’re willing to manage an extra credit card solely for your gas spending. It’s a good idea to run the numbers and see how much extra cash back you might earn from a gas credit card, and then decide whether it’s worth the extra hassle.
For example, let’s say you already have a rewards that offers 2% cash back on your purchases. You spend around $100 per month on gas. Now, imagine you find a gas credit card offering 4% cash back on gas purchases. That means you’d earn an extra $24 per year if you used this credit card for gas. Is that amount worth it to you? That’s something only you can decide.
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Do Gas Credit Cards Help You Build Credit
Like most credit cards, a gas credit card can help you build credit as long as you meet a couple of criteria.First, its important to pay your statement balance in full by the due date. Paying your bills on time can help you build or maintain a positive payment history, which is one of the many factors that determine your credit scores. And paying the full statement balance if its possible can also help keep your utilization rate low. Your utilization rate or the percent of your available credit that youre using at any given time is another factor that can impact your credit.Second, does the card issuer report your account activity to the three major consumer credit bureaus? If not, your positive payment history and low utilization rate wont be able to help your credit. Which bureau the issuer reports to, or whether it reports at all, can vary, so we recommend checking with the issuer before you apply for a card.
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