What types of people should consider applying for one of the best gas rewards credit cards?
One important thing I’d like to point out first is that gas rewards are not the only benefit that motivates consumers to apply for gas credit cards. Some resources report that Blue Cash Preferred American Express, Discover it, Chase Freedom, etc., are often considered as one of the most popular gas credit cards, and it reveals that although consumers are eager to save money on gas, they tend to have more holistic views in choosing credit cards based on more diverse benefits.
Thus, when I was asked who will consider the best gas rewards credit cards the most, my answer is twofold from benefit and usage perspectives:
- Heavy credit card users who consider gas rewards as one of the most important rewards;
How much higher of a gas rewards earning rate do you think is needed to warrant committing to a particular gas station chain?
- Multiple car owners who heavily and frequently consume gas.
As mentioned above, consumers choose credit cards not only based on gas rewards, but also based on other benefits, such as annual fees, cash back from overall spending, discount on hotel stays, etc. Therefore, we cannot say that a specific earning rate can make consumers stay in a particular gas station chain. However, considering that the most popularly offered and attractive cash back at the pump is 5 percent, any number that exceeds 5 percent is expected to appeal to consumers in order to make them commit to a particular gas station chain.
What additional exclusive services are offered to particular gas station chain users will also appeal to consumers. For example, at Wawa gas stations, air for tires is free, while other stations charge $1 or $2. Likewise, earning rate is not the only factor that makes consumers stay with a particular gas station chain.
Does it make sense to get even one of the best gas rewards credit cards when gas prices are low?
Lower gas prices would obviously cause less concerns about spending on gas. In turn, consumers’ interests in the gas rewards would be decreased and the demand for the gas rewards credit cards would be decreased, accordingly. However, gas consumptions are regularly made all the time whatever gas prices there are, and it continuously reminds consumers of the option to have a credit card for gas rewards. More importantly, the gas prices are moving up and down and consumers know it and thus, as long as there exists a belief/concern about the soaring gas prices in the future, the influence of low gas prices on the commitment to the gas rewards credit cards would be limited.
By offering a variety of membership benefits, other than cash back on gas purchases, the influence of inexpensive gas prices on the credit card memberships can be also minimized.