Pros And Cons Of Using Gas Credit Cards

Gas credit cards are quite popular and accepted among people who do a lot of driving and want to save on fuel costs. Some are specific gas station cards that are associated with only one chain of stations while others are provided by major credit card providers and can be used at any gas station.

Pros of Gas Credit Cards

Rebates - Perhaps the biggest benefit and the number one reason consumers get a gas credit card is for the savings that they get on fuel. These programs provide rebates by giving either a percentage back on purchases or a cash amount for each dollar spent. For instance you might either get a percentage like 2-5% back on gasoline purchases or $0.05 - $0.10 back for every dollar spent. This savings will sure make a big difference when you calculate it for one year.

Rewards - Apart from rewards gas credit card programs include some sort of incentive for using the card. Some might include points for every dollar purchased that can be used to purchase specific things. The points might go to travel, dining, entertainment or purchases at specific partners. Although it takes time to accumulate these points when you have enough of them to redeem the benefits are worthwhile.

Convenient - Having a gas credit to make purchases especially fuel purchases is extremely convenient. It makes purchasing fuel as simple as pulling up to the pump and paying right there. Once the bill arrives you will see how much you spent on fuel and you can pay it off in just one payment. Having an overview of fuel spending every month is very helpful to households and businesses that need to keep track and make the necessary allocations in their budgets. Additionally eliminating the need for cash at the pumps will put you at less risk of being robbed or unnecessary at gas station convenient stores.

Cons of Gas Credit Cards

Interest Charges - You probably guessed that the biggest drawback to gas credit cards is the associated interest rates. Since they are classified as reward cards the interest rates are substantially higher than those for standard credit cards. When your balance accumulates to a point that the interest charges are more than the rewards that you receive, the card would become more of a liability than a benefit. To avoid this it is important to pay off your balance in full when you receive your statement so that you can get the most of the rewards that you receive.

Unnecessary Spending - Having a ready line of credit can be dangerous especially in the wrong hands. This credit line increases the temptation to purchase unnecessary things. A card acquired solely for the purpose of saving on fuel can later be used to shop and pay for things that you had not intended to pay for. It can also lead to using more fuel than necessary. For example without the card you might have a standard gas budget for the month and would stick to it. Due to the convenience and availability of the gas credit card you might find yourself going over what you would have normally spent on fuel, even with the savings that you receive. To combat this prepare a budget and stick to it and avoid the temptation to use the card to pay for things that you cannot afford to purchase.

We recommend you check out the best gas rebate credit card on the market.

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