Can I get gas on a Discount Tire credit card?
|Best For...||Card Name||Gas Rewards||Annual Fee|
|Points at Any Station||PenFed Platinum Rewards Visa Signature® Credit Card||5 points per $1||None|
|Cash Back at Any Station||Blue Cash Preferred® Card from American Express||3% cash back||$95|
|Bad Credit||Discover it® Secured||2% cash back (up to $1,000 spent on restaurants and gas stations each quarter, then 1%)||None|
|Business||Ink Business Cash℠ Credit Card||2% cash back (up to $25,000 spent per year at gas stations and restaurants, then 1%)||$0|
|Students||Discover it® Student chrome||2% cash back (up to $1,000 spent per quarter at gas stations and restaurants, then 1%)||None|
|Fair Credit||ExxonMobil Gas Card||$0.06 per gallon discount||None|
|Costco Members||Costco Anywhere Visa® Card by Citi||4% cash back (up to $7,000 spent per year, then 1%)||$0|
|Travel & Dining||Citi ThankYou® Premier Card||3 points per $1||None 1st yr, $95 after*|
|Military Community||USAA® Cashback Rewards Plus American Express® Card||5% cash back (up to $3,000 spent per year, then 1%)||None|
|Gas Station Card||Marathon Credit Card||$0.05 to $0.25 discount per gallon||None|
What types of people should consider applying for one of the best gas rewards credit cards?
Due to the fact that gas cards are restricted to specific gas stations and often have high interest rates and confusing rewards policies, many consumers are likely better off using a general-purpose credit card to purchase fuel. Consumers who purchase a significant amount of gas each month might receive enough savings from a gas card to make it worthwhile, though. Also, consumers with bad credit who may have been denied for a general-purpose credit card might be approved for a gas card, and they could then use it to build up their credit score. In either case, it’s imperative, though, that gas card users repay their entire balance every month -- otherwise, they could be slapped with a sizeable interest charge.
How much higher of a gas rewards earning rate do you think is needed to warrant committing to a particular gas station chain?
I don’t believe that the gas rewards earnings rate is as important as the dollars a specific consumer estimates that they might save, in return for opening and having to manage another line of credit that could ultimately charge fees and interest. If I fill up my Toyota Corolla once a week and it holds roughly 13 gallons in gas costing $2.50 per gallon, I can expect to pay around $32 per week for gas. If a gas card allows me to pay $0.05 less per gallon, then I would save $0.65 per week. For me personally, $0.65 per week ($33.80 per year) is not worth the additional work and stress involved with using a gas card and maintaining an additional line of credit. That might not be the case though for others.
Does it make sense to get even one of the best gas rewards credit cards when gas prices are low?
Savings rates for gas cards can be higher when gas prices are low ($0.05 saved on $2.50 per gallon is 2 percent savings), and can be reduced as gas prices increase ($0.05 saved on $4.00 per gallon is 1.25 percent savings). As a result, it could be argued that a gas card might be more worthwhile when gas prices are low, than when they are high. Even so, for most consumers, I doubt the cost savings a gas card provides offset the stress and financial risk it brings with it.
What types of people should consider applying for one of the best gas rewards credit cards? How much higher of a gas rewards earning rate do you think is needed to warrant committing to a particular gas station chain?
As a CPA and Attorney, I encourage clients to always use gas credit cards, particularly for those in business. I have seen too many instances in IRS audits, where the gas expense which was deducted by a small business was denied due to a lack of substantiation. This is because of the difficulty in keeping cash receipts for the gasoline paid. A business gas credit card takes care of that. Even for non-business use and family budgeting, a gas credit card separates what is for many families a significant yearly total expenditure.
Regarding the issue of gas reward credit cards, this is a new trend, as gasoline companies see the opportunity to establish loyalty among their customers. When evaluating whether to use a particular gas company’s card, you should compare their reward system to that provided by the major credit card companies, along with reviewing the price differential per gallon for using their reward card.
|Gas Station||Co-Branded Card||Gas Card|
|BP||BP Credit Card||BP Gas Card (same application as Visa version)|
|Chevron and Texaco||Chevron and Texaco Credit Card||Chevron and Texaco Gas Card
Chevron and Texaco Premium Gas Card
|CITGO||None available||CITGO Gas Card|
|Conoco||None available||Conoco Gas Card|
|ExxonMobil||None available||ExxonMobil Gas Card|
|Marathon||Marathon Credit Card||None available|
|Phillips 66||None available||Phillips 66 Credit Card|
|Shell||Shell Credit Card||Shell Gas Card|
|Speedway||Speedway Credit Card||None available|
|76||None available||76 Credit Card|