Learn the Benefits and Drawbacks of Gas Credit Cards
There are few things more convenient than using a credit card to handle one’s finances. We use them to buy food, goods at stores, and things on the internet, and we don’t have to pay anything back until the bill arrives in the mail (or email inboxes).
With a gas credit card, we may save money and rack up benefits at the same time. Nevertheless, it’s crucial to understand that this category includes two distinct sorts of cards: (1) general rewards credit cards that offer bonus rewards points on gas station purchases and (2) branded store cards you can only use at certain gas stations. Let’s discuss the benefits and drawbacks of both options.
Benefits of Gas Credit Cards
Gas credit cards are useful because they often come with bonuses or discounts on gas purchases. You can earn points on other transactions you make with gas credit cards that are also regular credit cards from card networks like Visa, Mastercard, or American Express.
Credit cards issued by gas stations often provide up to 3% cash back on gas purchases, though rewards programs do differ. It’s simple to see how this could be useful if you have a long commute to and from work. After all, if you spend $500 a month on gas (or $6,000 a year), you’ll earn $180 in cash back at the 3% rate.
In addition to these advantages, gas credit cards may also provide the following:
• Sign-up bonuses: Several credit cards that provide rewards for petrol purchases also provide a sizable sign-up bonus if the cardholder meets a spending threshold during the first few months of opening the account. These new member perks can significantly increase your first year’s rewards total.
• Discounts on gas purchases made at the same gas station chain that issued the credit card are another perk. You’re definitely thinking about getting a gas credit card so you can take advantage of these deals and save money on petrol.
• Additional Spending Reward Options: There are two main types of credit cards sold at gas stations: “store credit cards,” which can only be used at a certain chain of gas stations, and “standard credit cards,” which may be used anywhere credit cards are accepted. As a result, you can use your credit card to collect rewards at petrol stations and elsewhere.
Note
Branded gas credit cards may not provide as many perks as true rewards credit cards, but they are frequently easier to qualify for, making them a good choice for folks who are just starting out with credit or working to repair their credit.
