How To Choose A Gas Credit Card

A fuel bank card describes any rewards bank card that provides money again or rewards factors for fuel purchases. But inside this class, there are bank cards that supply flat-rate rewards for fuel and different spending, playing cards that supply bonus rewards for fuel purchases all yr (or in particular quarters of the yr) and fuel bank cards which can be affiliated with retailers or fuel station manufacturers.

The important thing to picking a fuel rewards bank card is figuring out how every kind works and which one rewards your fuel spending model essentially the most. A number of the greatest bank cards for fuel providing the best money again charges additionally include annual charges and bonus rewards limits, so figuring out how a lot you spend fueling up annually may also help slender down your card choices.

The typical family spent $3,120 on fuel in 2022, in response to the 2022 Shopper Expenditures survey from the U.S. Bureau of Labor Statistics — a considerable improve from the typical of $2,148 in 2021.

Whilst fuel costs start to dip, figuring out how a lot you sometimes spend every month may also help you discover the best card, in addition to estimate how a lot you’ll earn in rewards.

Sorts of bank cards that reward you on the pump

Rewards bank cards are all distinctive with regards to their rewards charges and cardholder advantages. However rewards playing cards for fuel are inclined to fall into one among three classes — rotating class rewards bank cards, flat-rate money again bank cards and co-branded bank cards for fuel.

Rotating class playing cards

Some rewards bank cards provide bonus rewards on fuel throughout particular quarters of the yr, though typically with limits. Rotating class playing cards additionally have a tendency to return with no annual payment, they usually earn money again on all purchases made with a card — not simply on fuel.

The fascinating factor to notice about rotating class playing cards is that you just gained’t know forward of time which quarter you’ll earn bonus rewards on fuel — or if you’ll in any respect. Fuel is sometimes included as one of many bonus classes on these playing cards, however it’s not a assure.

An instance of a rotating class card for fuel is the Uncover it® Money Again Credit score Card. This card gives 5 p.c money again on as much as $1,500 spent in quarterly bonus classes (then 1 p.c again; activation required), in addition to 1 p.c money again on different purchases. Uncover additionally matches all rewards earned after the primary yr, and there’s no annual payment. Uncover’s Cashback Calendar included fuel and residential enchancment shops within the second quarter of 2024 — or from April to June.

Execs

• Earn money again rewards on all purchases, not simply fuel
• Sometimes earns bonus rewards on fuel throughout one quarter annually
• Tends to don’t have any annual payment
• Gasoline up at any fuel station you need

Cons

• Bonus rewards on fuel are sometimes solely provided three months per yr
• Rewards charges for normal purchases are unimpressive in comparison with different playing cards
• Different quarterly bonus classes will not be helpful to you

Flat-rate money again playing cards

You’ll discover that flat-rate money again bank cards provide the identical rewards charge on all purchases — or fastened bonus rewards on fuel purchases and in different classes. Playing cards that fall into the flat-rate reward class have a tendency to return with no annual payment, they usually typically have welcome bonuses to entice folks to enroll.

A stable instance of a flat-rate money again bank card for fuel is the Blue Money On a regular basis® Card from American Categorical. This card has no annual payment, and new cardholders can earn $200 again after spending $2,000 on purchases inside six months of account opening. The cardboard additionally gives:

• 3 p.c again on as much as $6,000 spent at U.S. fuel stations annually (then 1 p.c again)
• 3 p.c money again on as much as $6,000 spent at U.S. supermarkets annually (then 1 p.c again)
• 3 p.c again on as much as $6,000 spent at U.S. on-line retailers annually (then 1 p.c again)
• 1 p.c again on all different purchases

Different flat-rate money again bank cards provide the identical rewards charge on all spending. The Wells Fargo Energetic Money® Card is an efficient instance, providing a flat 2 p.c money again on all purchases — together with fuel — with no annual payment.

Execs

• Earn money again rewards on all purchases
• Earn bonus rewards on fuel annually (as much as sure limits)
• Tends to don’t have any annual payment
• Gasoline up at any collaborating fuel station you need

Cons

• Annual bonus rewards caps restrict rewards potential
• Numerous limitations can apply
• You could solely earn 1 p.c again on common purchases

Co-branded bank cards

Lastly, some fuel station manufacturers provide their very own fuel rewards bank cards, whereas warehouse shops might need their very own co-branded bank cards as properly. These playing cards can provide bonus rewards on fuel and different purchases, however you’ll wish to evaluate choices side-by-side to know how they work and what their rewards potential is.

An instance is the BPme Rewards Visa®*, which is a rewards bank card for fuel that can be utilized wherever Visa is accepted. This bank card gives reductions on Amoco gas purchases particularly, in addition to 5 p.c money again on non-fuel purchases at Amoco and BP stations, 3 p.c money again on groceries and eating purchases and 1 p.c again on different spending.

This card can be greatest for individuals who sometimes refill on gas at BP and Amoco fuel stations, in comparison with those that could refill at many various manufacturers all through the month.

Then there are the warehouse fuel bank cards, which might be rather more versatile however sometimes require that you’ve a warehouse membership. A prime card on this class is the Costco Wherever Visa® Card by Citi*, which earns:

• 4 p.c money again on as much as $7,000 spent annually on fuel and EV charging purchases (then 1 p.c again)
• 3 p.c money again on eating places and eligible journey purchases
• 2 p.c money again at Costco shops and Costco.com
• 1 p.c money again on different purchases

You have to be a paid Costco member to qualify, however you’ll be able to earn bonus rewards at fuel stations worldwide — not simply at Costco fuel stations.

Execs

• Earn money again rewards on all purchases
• Earn bonus rewards on fuel annually (as much as sure limits)
• Tends to don’t have any annual payment

Cons

• Annual bonus rewards caps restrict rewards potential
• Bonus rewards could solely apply at sure fuel stations
• Co-branded fuel station playing cards are inclined to have low rewards charges
• Sure memberships could also be required

What to think about when selecting a fuel card

Given how extensively fuel rewards bank cards can differ of their advantages and rewards constructions, it may be troublesome to find out the very best fuel bank card for you. Take into account your price range, your spending habits and your most popular rewards kind when weighing playing cards.

Annual fuel spending

Determine how a lot you sometimes spend on fuel annually, after which run the numbers to see how a lot you may earn in rewards with completely different playing cards. Whereas some fuel bank cards have annual limits on bonus rewards on this class, they are typically excessive.

For instance, you would need to spend $500 monthly on fuel at U.S. fuel stations to max out the bonus rewards class on the Blue Money On a regular basis card annually, after which you’d nonetheless earn 1 p.c money again on fuel station purchases.

The place you gas up

Additionally take into account which fuel stations you are inclined to frequent, together with whether or not you’re loyal to a particular model or get fuel all over. This issue is most essential if you happen to’re fascinated with getting a co-branded fuel station card that solely gives bonus rewards on fuel from particular shops.

Rewards kind

Subsequent, take into account the kind of rewards you’ll be incomes and how one can redeem them. Most money again bank cards provide versatile redemption choices like assertion credit and reward playing cards, but co-branded fuel bank cards might be restricted.

For instance, the Costco Wherever Visa solely provides you your rewards as soon as per yr after your February billing assertion closes, and you may solely redeem rewards for merchandise or money again in Costco shops.

Different incomes charges

Additionally be aware the opposite rewards charges fuel playing cards provide, together with how a lot you’ll earn on on a regular basis purchases in different classes you have a tendency to spend so much on.

As an example, if you happen to don’t wish to handle a number of playing cards, a flat-rate money again card just like the Wells Fargo Energetic Money that rewards you equally for all purchases may give you some money again on fuel station spending with out including pointless complexity to your pockets.

How a lot financial savings are you able to get with a fuel bank card?

The newest federal information from the U.S. Bureau of Labor Statistics put fuel spending for the typical American family at $3,120 for the yr of 2022. If that spending carried over to 2024, it’s straightforward to see how a lot money again you may earn on fuel alone:

• With a card that provides 1 p.c again on fuel, you may earn round $31.20 on fuel purchases.
• In the meantime, a card that earns 2 p.c again on fuel may internet you round $62.40 on fuel purchases.
• Additional, a card with 3 p.c again on this class may make it easier to earn round $93.60 on fuel purchases.
• In case you maximize your 5 p.c money again rewards on a rotating class card, you may earn round $39 in that quarter alone.

Don’t overlook that these rewards estimates can be along with any bank card sign-up bonuses you earn, in addition to your rewards for normal spending.

The Uncover Cashback Match™ program, for instance, mechanically matches all of the money again you’ve earned on the finish of your first yr. In case you maximize the cardboard’s 5 p.c bonus classes every quarter, you’ll be able to earn a minimum of $600 — $300 in money again and $300 in matching rewards (plus any further rewards you earn on the 1 p.c money again charge).

The underside line

Selecting the very best bank card for fuel might be difficult as a result of there are such a lot of to select from — all with completely different rewards constructions, cardholder perks and options. Earlier than deciding on a card, determine the place you gas up essentially the most and the way a lot you usually spend on fuel annually. From there, you’re higher positioned to choose the cardboard that most closely fits your spending patterns.

That stated, not all playing cards with bonus rewards for fuel are nice for on a regular basis spending. For that motive, chances are you’ll wish to pair a devoted fuel card with one other money again bank card or rewards bank card that provides a stronger rewards construction for different purchases you make.

*Details about the BPme Rewards Visa® and the Costco Wherever Visa® Card by Citi has been collected independently by Bankrate. Card particulars haven’t been reviewed or permitted by the issuer.