Gas Rewards Credit Cards

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There are several advantages of carrying a branded fuel credit card. For the person trying to re-establish credit, a fuel credit card can sometimes be easier to secure that a typical Visa, MasterCard or Discover Card. For building your credit rating, you would definitely want an issuer who gives you a credit line of at least $300 and you can make monthly payments rather than paying the account in full each month. Also, these type of cards do not charge yearly membership fees.

Why use a branded gas card?

Many of the branded cards are fighting for consumer loyalty so most are offering cash-back or gas discounts when you use their cards at their stations. It is not unusual to see an offering of five cents or more per gallon. With escalating prices of fuel in this economy, any help with commuting expenses can be advantageous.

If you use a particular brand of fuel and stop at the same station more often than not, using a branded card for all your gas purchases is a very good way to keep up with exactly how much you are spending each month in fuel costs. This can be a wake-up call on poor mileage for your auto or when you choose to purchase a new vehicle, you can opt for a similar model that performs well in economical use.

There are several other advantages. If you are short on ready cash, many of these stations have attached convenience stores where you can purchase milk or other necessities on your way home. The cost of these goods will be quite a bit higher than a regular supermarket, but you are paying for the convenience, plus you are able to use your gas credit card to make the purchase. In addition, if you travel by car for business or on family vacations, having a branded gas credit card can be very useful. You do not have to tie up your traditional credit card limit with gas purchases, and you have a card should any emergency occur.

Like most credit cards, there are limitations or disadvantages. Some credit issuers do not regard retail credit cards with the same weight as traditional credit cards. However, this is not an excuse to constantly pay late or miss payments. Generally, branded gas credit cards carry a very high APR. The interest rate is high. You do not want to carry a balance each month. Any savings you see in the price of your fuel would be offset – and more –by your monthly interest.

The best way to attain and keep this type of credit card is to pay your account in full each month.