Since the car has become a necessity for the average person, it is clear that fuel has become a significant item in the household budget. Even if you don't drive long distances, your four-wheeler must have fuel in it because you never know when you might need it.
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If you travel a lot, for pleasure or work, you probably fill up the car tank several times a month. You're probably aware that fuel prices are on the rise again, and you may be feeling that pinch. If you have a pump in your area and have been visiting it few times a week, maybe it's time to take your relationship with a particular brand to the next level.
Many different credit and debit cards for gas are offered by many oil companies, banks, and other legal entities because of the high demand for fuel. When you're a regular customer, most companies may be willing to give you certain bonuses and perks based on your good payment history and loyalty to them.
Understand How Gas Cards Work
Simply put, these means of payment allow you to make money while you spend. Each amount you pay with it has a certain percentage of refunds on it. You can have this perk on almost every pump that belongs to a larger chain. You can choose the issuer that offers you the most benefits.
Over time, that amount becomes significant and can be spent in certain ways. These are the benefits provided to you by the issuer as a sign of gratitude for being a loyal customer. That can offer some relief if you pay high fuel bills every time. Also, it's a great way to track your fuel consumption.
You can use a gas card at any participating pump, including independent and co-branded ones. Some companies will only accept transactions you have made on their pumps. They won't award you for purchases from competitors.
It's good to know that some traditional credit cards can participate in reward programs. You can get this information from your bank. This payment means work almost the same way as a gas credit card, but these can sometimes offer a better value. Their rebate rates go up to 5 or 6 percent.
What Privileges Are Available
Gas credit cards offer a bunch of discounts, points, or fuel credits to loyal customers. While points can be turned into cash, fuel credit will reflect on your fuel bill as a discount. That saves you money at the moment you make payment.
As long as your rewards overcome the yearly maintenance cost, it pays-off having a gas card. Different issuers will provide different reward programs. The purpose of each of them will be to make you spend (and earn) more.
Types Of Rewards
Some companies will provide extra incentives to customers who use spend more money at their pumps. You have several options regarding how you can make purchases. For instance, some cards will give you cash back; others reward you with better fuel prices. Some brands give you points that you will eventually exchange for something.
Most people will choose cashback reward programs. Most oil companies and pumps have them, and you can benefit from these bonuses every time you buy fuel. Whether you use the card at one gas station or several different ones of the same chain, you still receive the same level of reward. The only difference is how the company rewards you.
Another option provided by card issuers is giving you points. This is another way that they reward their customers for frequent purchases. The more you spend on fuel, the more points you collect. At the end of a month, these can be exchanged for some product that gas stations have on their offer.
Both of these types of rewards are nice. You get the convenience of rewards when you use your gas credit cards. You also get the ability to save money from regular purchases at the same gas stations.
How To Apply For A Gas Card
Anyone who meets the requirements prescribed by the issuer can apply for it. On Kredittkortinfo – drivstoffkort, you can check some options and compare them. The conditions for acquiring a gas credit card are much looser than for regular one. One of the reasons for this is that you can't use these means of payment outside pumps. The possibility of exceeding the limit is almost non-existent.
Despite the limited use, gas credit cards can be quite handy if you can't get a traditional credit card because of a poor credit score. In fact, it can be a good way to boost your credit score if you settle your monthly balance regularly.
With some cards, you may be able to choose a billing date that works for you. Some companies will even give you a chance to redeem your rewards. For example, if you don't need extra fuel that month, you can turn your points into cash and buy some car cosmetics.
It doesn't matter if you buy fuel every day or once a month. You can participate in a reward program even if you don't have a car. Still, if you don't use the card enough to make significant savings or earn rewards that compensate annual fees, you can cancel it anytime, without extra costs.
Are There Any Downsides To Gas Cards?
There are not many problems with gas credit cards. Their limited use is probably the most significant one. That's why you should choose issuers carefully. Gas stations participating in their reward programs must fit into your lifestyle and be places that you visit often.
With some gas credit cards, it can be tricky difficult to earn the maximum reward amount. There is no telling how many years this will last as the gas credit card rewards are based on your credit score. If it's bad, you would be limited with perks. It can take some time to build up the needed credit history to receive the maximum benefits.
If you have too many monthly payments, a gas reward card can be an additional burden. Getting a few benefits is not a reason to accumulate debts and risk exceeding the limit. Paying high-interest rates is another disadvantage of this payment means. But if you can handle these costs (you have a steady income and are debt-free), go for it.
If you use your gas card at the same gas station where you make regular purchases, you may be given a percentage off your entire gasoline or diesel fuel purchase. That can bring you some relief on gas expenses, which can be a significant burden to your budget as fuel prices are going up.
