The Pros and Cons of Using Gas Credit Cards for Your Fuel Purchases
3 Little-Known Drawbacks of Using Gas Credit Cards
Gas credit cards offer a discount when you buy gas at certain gas stations. Read on to learn if these cards really stack up to other credit cards. Gas credit cards are cards that earn higher rewards or cash back for gas purchases. Generally, these cards come in two types.
1. The savings aren't always worth it
Gas branded credit cards often give you instant savings at the pump, instead of cash back or rewards. Typically, the card will reduce the price of the gas you're buying by a fixed amount, like $0.10 per gallon. When you do the math, the per-gallon reduction isn't always competitive, especially if you live where gas prices are above the national average ($3.675 as of April 22, 2024).
2. Welcome bonuses can be weak
Some gas credit cards come with welcome bonuses. The bonus is usually a boost to your per gallon savings. For instance, while the card may normally save you $0.10 per gallon, a bonus might boost this to $0.30 for your card's first 60 days.
3. Branded cards can tether you to gas stations
Finally, many gas credit cards are closed-loop, meaning you can only use them at a specific company or brand.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.