A Retail Gas Card, How Does It Work? Gas Card may look like every other regular credit card on the surface, there are some stuff to look out. The major difference is the location of your usage, places that they can be used. Gas Card may also be good for cardholders that want to build their credit, some may be rewarding as traditional cards. But before applying for the card, check the cost as well as the pros and cons to actually determine the one that is good for your usage.
What is a Gas Credit Card?
For example, the ExxonMobil Smart Card, one can get 6 cents off each gallon of gasoline at Exxon and Mobil gas Stations and will earn two points per gallon of gasoline purchases with the card. A retail gas credit card is used to make payments mostly for gasoline, diesel and other fuels at gas stations. Gas fuel cards are peculiar due to the convenience and comprehensive reporting that accompanies their use. It is different from a prepaid card issued by a Gas Station. Whenever you used a Gas credit card, you can pay for gas at the pump while taking advantage of discounts and perks offered by the card issuer.
How Does It Work
A Gas Card can help cardholders track gas expenses and save money at the pump, though there are pros and cons to take into consideration when applying for this card.
Gas station credit cards function almost the same pattern with store cards. They’re mostly accepted in a particular gas station chain and partners or affiliates and are not useful in any other store or for online shopping says Alex Gerard, founder of Cards Mix.com.
A Gas Card Builds Your Credit Score
A Gas credit card is a good option for those with fair credit. However, that is searching for how to rebuild their credit. With gas credit card cardholders can take control of their expenses. Since it’s not easy to overspend on a Gas Card because it’s not accepted outside the gas station.
Although gas credit cards may be easy to approve, they often come with high interest rates. For example, the Exxon Mobile Smart Card has an annual percentage rate (APR) of 25.74 percent on purchases. That’s nearly 10 percent higher than the National average credit card interest rate as of May 10, 2017. “If you don’t have any problems getting approved for traditional credit cards, you may find that general purpose credit cards with gas rewards offer a better value,” Gerard says. Earning 3 to 5 percent rewards on gas is a possibility today.”
What You Should Consider before applying for a Gas Credit Card
Gas Credit cards can reward loyal customers by offering discounts and fuel credits. A fuel credit may apply to your bill as a Statement Credit, effectively saving you money. The problem is, you may have very limited use with these cards. In other words, make sure the gas station you get the gas credit card from is easily accessible and fits your lifestyle. While gas credit cards can save consumers money at the pump, gas credit cards could offer even higher returns. Unlike gas credit cards, gas rewards credit cards are traditional credit cards that offer points or cash back on gas purchases.
In Conclusion, If your credit needs work, a gas card can be a better fit to get started. It is easy to get approval for a gas-branded credit card, and you’ll have fewer opportunities to rack up debt. If your credit is in good shape and you make your payments in full, a gas rewards credit card could be a better option for you.