Learn the Pros and Cons of Using Gas Credit Cards

It’s not easy to decide whether to pay at the pump with a credit card or another method. This cashless method is sold as a quick and easy way to fill up your gas tank. Still, you have to deal with high rates and other restrictions. Here are the good and bad things about paying for gas with a credit card to help you decide.

Pros

Price reductions on purchases

One reason to have a credit card for gas is the savings you can get when you use it. Most of these cards let you pay less per gallon than the price at the gas station. With gas prices going up all the time, this deal can save you a lot of money that you can use for other things.

The way these programs are set up, you get bigger discounts in the first few months after getting your card. For example, the ExxonMobil fuel card gives you 30 cents off per gallon for the first two months and 6 cents off per gallon after the first two months. It also gives you $6 back if you use their app to pay for gas three times.

Adding up Reward Points

The prize program is another reason to use a fuel card. This is how many points you get for each gallon of gas you buy. A typical reward of 1 point per gallon gets the average American driver about 540 points per year. This figure is based on an estimate of 25 miles per gallon and the average number of miles driven by a driver each year, which is 13,476 miles. When you have 100 or more reward points, you can exchange them for something. At certain companies, you can use these for gas or other things like snacks and car washes.

A payment system that is easy and convenient

When paying with cash, you have to wait in line at the cash register. This can take time away from your already busy life. But if you have a gas card, all you have to do is pull into a gas station, fill up your tank, and swipe it at the pump. In a few minutes, you can be back on the road.

Another good thing about using a gas card is that it is easy to use. This helps because you might not always have enough cash to put gas in your car. Like with other credit cards, you get a bill for your purchases at the end of the month. This helps you keep track of your gas bill, which keeps you from going over your budget.

Cons

High rates of interest

High-interest rates are one of the main reasons why you shouldn’t use a credit card to pay for gas. In general, they charge an interest rate of 24%. That’s 9 percent more than the average rate for all credit cards, which is 15% APR right now. If you don’t pay off your card at the end of the month, you could end up with a big bill. This may be a lot more than the savings and rewards can make up for.

Simply put, using the card wrongly over and over again can hurt your credit score. One way to deal with this is to get a card with a 0% interest rate for the first few months. This will help you get by for a few months while you figure out your gas budget.