It appears that gas prices will increase, and thus, you may feel the financial strain due to increasing gas prices. So, with these issues, obtaining a gas credit card may be a good way to go.
What is a Gas Card and How Does it Work?
A gas credit card is like a store credit card, but it is offered by a gas station. While using it at a gas pump, you can save time and possibly earn perks and discounts provided by the card issuer. Also, you can easily track your fuel expenses separately thus allowing easier budgeting.
You can apply for a gas credit card online or at a gas station, and you can choose the billing date in some cases. It is also usually easier to get approved for a gas credit card than a traditional or another type of credit card if you have fair credit. With it, you can work on improving your credit.
Pros & Cons of Gas Credit Cards
Now, that you see how gas credit cards work, and you see some of its pros, there are also some cons to consider. The full list of pros and cons of gas credit cards include the following:
Pros
- Ability to track your gas expenses
- Possibly saving money at the pump
- Helpful for those having trouble obtaining approval for a traditional credit card.to re-establish their credit
- Not easy to overspend on a gas card due to its unacceptability outside the gas station
- Rewarding loyal customers through fuel credits and discounts
- Even if you don’t have problems obtaining approvals of traditional credit cards, you may still be able to obtain better value for general-purpose credit cards with gas rewards
Cons
- Usually only accepted at a particular gas station chain and useless for online shopping
- Usually comes with high-interest rates.
- An additional fee may be in some cases thus negating some rewards
- Sometimes gas stations provide discounts for paying with cash.
- Gas rewards credit cards are traditional credit cards, but they may provide higher returns than gas credit cards that are offered by gas stations.
Conclusion
Gas credit cards are the way to go for various reasons, ranging from the ability to save time at the pump and money to the ability to rebuild your credit. However, there are some cons to gas credit cards as with any product. So, it is better to look over the terms of gas credit cards, weigh the pros and cons, and ensure you obtain a gas credit card from a gas station that is easily accessible and fitting to your lifestyle.
