Everything You Need To Know About Gas Credit Card

Aug 25, 2022 By Triston Martin

Customers can make their purchases using either cash back or other benefits offered by standard credit cards. There are several notable distinctions in the many cards, even though they are like one another. It should be no surprise that credit card issuers want a piece of all those consumer transactions made at gas stations. As a result, several of them provide incentives for you to use their card at the pump to encourage you to do so. This perk is available on a growing number of credit cards.

Oil-Company Cards

Oil firms often work with financial institutions to create gas credit cards for their customers. They are provided by the majority of the major oil companies, if not all of them, and some of them have a wider selection of cards than they do grades of gasoline. Shell, for instance, would often provide customers with many cards, including two for normal consumers and three for enterprises with a fleet with more than one vehicle. Some companies also provide cash back on travel expenditures, including airline tickets, hotel stays, and vehicle rentals. In most cases, no annual fees are associated with their use; nonetheless, their interest rates may be rather high compared to those of other forms of credit cards, often exceeding 20%. In some circumstances, the cards are only valid for usage at the associated petrol station.

The amount of money spent on gasoline relative to the amount spent on other types of items may help determine which kind of credit card is the best choice. In addition, there is often a sign-up bonus associated with gas cards that consist of an extra discount or additional incentives that are granted during the first few months of using the card or up to a certain purchase amount.

Gas Credit Cards

For instance, Exxon Mobil provides a discount of six cents a gallon, which translates to a three percent savings assuming that the price of a gallon of petrol is two dollars. In addition, new cardholders will get a bonus discount of 24 cents off of their first two months' worth of petrol purchases when they use their card. After the qualifying purchases have been made within the first two months of the account being opened, the bonus discount will be applied as a credit to the customer's statement.

Shell provides customers with the option of selecting between a fuel rewards card, which can only be used for the purchase of gasoline, and a gas credit card via Mastercard, which can also be used for other types of expenditures. Both cards provide a 10% cash back bonus on the first $1,200 spent during the first year of card membership.

Credit Cards with Cash Back

There are no limitations placed on the use of the 1.5% cash back that credit cards like Capital One give on any transactions. This card is an option for those who do not have a credit history or who have credit that is not very good. You may get 3% cash back on purchases made in any of the following areas with the Bank of America credit card: eating out, shopping online, shopping at drugstores, traveling, or home renovation and furnishings. Using their mobile app, you can make that category adjustment. You will get a cashback rate of 1% on all other purchases, in addition to 2% cash back at grocery shops and wholesale clubs.

Which Is Better?

The amount of money spent on fuel every month will probably determine whether or not a standard credit card or a gas credit card is preferable. The back cash rebates offered by gas credit cards are often larger for purchases made at petrol stations and lower for purchases made at other establishments, such as grocery stores and restaurants. Suppose you find that you will make far more purchases at grocery stores and restaurants than at gas stations. In that case, you may want to consider applying for a traditional credit card that offers consistent cash back feature and does not restrict the types of purchases that can be made with the card. On the other hand, if you travel a lot or have a lengthy commute, a credit card that you can use for petrol can be a suitable choice for you. This card is an option for those who do not have a credit history or who have credit that is not very good.

Related Articles