Gas credit cards can be one option to earn a rebate on gas purchases, either in the form of cash back or other types of credit card rewards. This can make gas purchases help with your budgeting efforts.
There are many different types of gas credit cards, each with their own pros and cons. Some gas credit cards work only at one particular chain of gas stations, while others offer rewards no matter where you buy gas and may even give rewards on some non-fuel purchases. Understanding the different types of gas credit cards can help you choose the best gas credit card for your specific situation.
Key Points
• Gas and gas station credit cards may help earn rewards on gas purchases to aid budgeting.
• Options for these credit cards include general rewards and co-branded gas station cards.
• Fleet cards are available for businesses with large vehicle fleets.
• It’s wise to select cards based on spending habits to reap the most rewards.
• Credit-building potential varies by card type and whether they report to the credit bureaus.
What Is a Gas Credit Card?
A gas credit card is a term that can refer to a number of different types of credit cards. One might be a standard credit card that earns bonus credit card points on all gas purchases. Another type of gas credit card is one that is co-branded with an actual gas station and gives rewards at that gas station. There are also gas credit cards that are designed more for companies with large fleets of vehicles.
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How Do Gas Credit Cards Work?
Gas credit cards work in much the same way that any other credit cards work. You are extended a line of credit which you can use to make purchases. If you don’t pay what you owe at the end of your billing cycle, you are assessed interest for the privilege of carrying a balance.
Most gas credit cards run on a major credit card processing network like Visa, Mastercard, or American Express. That means that even if you might think of it as a gas credit card, it can be used anywhere those types of cards are accepted.
Types of Gas Credit Cards
There are a few different types of gas credit cards put out by various credit card issuers. Here are a few of the most common types of cards to consider if you want to save money on gas.
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General-Purpose Gas Credit Cards
General-purpose gas credit cards are credit cards that earn rewards on a variety of different purchases. They may have gas as one possible bonus category, or they may earn the same high rewards rate on all purchases.
Gas Station Co-Branded Credit Cards
A gas station co-branded credit card is generally marketed and primarily branded for one particular gas station (BP, Shell, Marathon, etc.). These types of cards are often referred to as “co-branded” because they are branded with both a gas station brand and the brand of the bank that issues it. While these are also usually part of a major credit card processing network like Visa or Mastercard, the rewards they earn are typically targeted to the main “branded” gas station chain.
Fleet Gas Cards
A fleet gas card or fleet fuel card is a different type of gas credit card entirely, and is targeted more toward businesses that have to manage a large fleet of vehicles. A transportation manager can give fleet cards to individual employees, allowing them to pay for things like fuel, repairs, and maintenance without having to pay out of pocket and get reimbursed. The transportation manager can then track and account for all of the disparate charges centrally.
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How Different Types of Gas Cards Compare
If you’re choosing a rewards credit card, there are a few questions that you’ll want to ask yourself:
• Ease of use: Is this a gas card that can only be used at one particular gas station, or can it be used anywhere?
• Rewards: Does the reward structure of the card match up with your spending patterns?
• Fees: What kind of fees does the card have? Avoiding credit card fees is an important part of choosing the right card.
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Which Type of Gas Credit Card Is Right for You?
Trying to determine what’s the best credit card for gas for you? Here’s a look at two of the most popular options among the different types of credit cards for gas.
Who Gas Rewards Cards Are Best For
The following types of people might be best served by a general purpose credit card that happens to offer rewards on gas purchases:
• Consumers who frequently shop at multiple different gas stations.
• Infrequent travelers who spend much more in other categories than they do at gas stations.
• People looking to maximize their credit card miles or cash back.
Who Gas Station Credit Cards Are Best For
These consumers might find that the best gas credit card for them is a gas station credit card:
• Consumers who spend an above average amount at gas stations.
• Travelers who frequently fill up at the same gas station chain every time.
• Employees who are given a gas station credit card by their employer and are mandated to use it.
Are Gas Credit Cards Generally Worth It?
For many consumers, gas and fuel purchases are one of the biggest spending categories each month. Just like improving gas mileage, earning cash back or other credit card rewards can help offset some of your fuel cost each month. Just make sure to compare the different gas card options to find the best gas credit card for your situation.
The Takeaway
There are a variety of different cards that can be considered gas credit cards. Some gas credit cards are more general rewards credit cards that happen to give a bonus on gas purchases. Other gas station cards have rewards targeted to one particular gas station brand. Still other gas cards are used by companies with large fleets to help manage their transportation expenses. Compare options, and see if one can suit your needs.
Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.
FAQ
Is there a credit card only for gas?
There are some gas credit cards that work only at specific gas stations and do not work for other purchases. Other gas cards are branded with a particular gas station’s color and branding (such as BP, Shell, or Marathon) but are still part of a major credit processing network (like Visa, Mastercard, or American Express). That means that you can use the card anywhere those networks are accepted.
What is the best fuel card to get?
The best fuel card to get is the one that maximizes the rewards based on your unique and specific spending patterns. If you always shop at the same gas station, you might be better off with a card that’s specific to that brand. If you shop at different gas stations or want to earn rewards on non-fuel purchases, you may want to consider a more generic rewards credit card that happens to also earn rewards on gas purchases.
Do gas cards help build credit?
Whether gas cards help build credit depends on specifically what kind of gas credit card it is. If it is a store-specific card that is not part of a major credit card processing network, it likely does not report purchases and credit history to the major credit bureaus. In that case, it likely will not help you build your credit history.
Photo credit: iStock/kckate16
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