Best Gas Credit Cards

2 Cards

Chase Freedom Unlimited®

Rewards are very simple: 1.5% cash on purchases. I like the simplicity. Read Full Review →

Apply online for the top gas rewards cards - Updated January 2023

Chase Freedom Unlimited®

(1 Rating or Review)

Lowest Credit Score

720

High Credit Score

850

Pricing: Intro Purchase APR 0% Intro APR on Purchases; Intro Purchase APR Period N/A; Regular Purchase APR 14.99% - 23.74% Variable

Fees: Annual Fee $0; Foreign Transaction Fee 3% of the amount of each transaction in U.S. dollars.

HSBC Cash Rewards Mastercard® credit card

(0 Ratings or Reviews)

Lowest Credit Score

690

High Credit Score

850

Pricing: Intro Purchase APR 0.00%; Intro Purchase APR Period 12 months; Regular Purchase APR Variable APR of 14.49% - 24.49% will apply after the Introductory Period

Fees: Annual Fee $0; Foreign Transaction Fee $0

When you think about your budget, there are a few categories that stay pretty consistent from month-to-month. If you’re like most Americans, these include your utilities, groceries, and gasoline. Payments at the pump are not only necessary -- fueling our daily commutes and vacation adventures alike -- but they also add up pretty quickly.

For most of us, it makes sense to add a gas credit card to our wallets. By doing so, we can save money on annual fuel purchases, earn valuable rewards, and even access benefits that we wouldn’t have otherwise. However, all gas credit cards aren’t created the same. There are a few things you’ll want to keep an eye out for, to ensure that you optimize everything that gas cards can offer.

Here’s a look at why you should consider applying for the right gas credit card, what you can expect from it, and the most common pitfalls you’ll encounter.

Why You Need One

Americans like cars, and we drive a lot. In fact, in 2017, our country consumed almost 143 billion gallons of gas at an average $2.42 a gallon, according to the EPA. This meant that the typical U.S. household spent just under $2,000 at the pump last year. Many households -- especially those with larger vehicles, bigger families, or in suburban/rural areas -- forked over considerably more.

That’s some serious money being spent just to fuel our vehicles.

If you’re buying gas with cash, a debit card, or even a non-gas credit card, you’ll get nothing in return for all that spending. This is exactly why you should consider adding a gas card to your collection. It’s the best way to trim your gas budget and save as much cash as possible each year.

Types of Gas Cards

A gas card can offer many benefits to cardholders, which vary depending on the product you choose. First, though, it’s important to know the difference between the cards out there.

If you want flexibility, both in your gas station options and your savings, gas rewards credit cards are the best option. These are general credit cards that offer rewards on your purchases at the pump, but also give you rewards when you spend elsewhere. They may offer you a percentage back on every dollar you spend or in specific spending categories, but gas purchases are included either way.

Then, there are wholesale club credit cards. Many wholesale clubs today have installed gas pumps at their locations, offering members excellent prices on fuel. By using that wholesale club’s credit card, you’ll earn rewards on your gas purchases, snag discounted fuel pricing, or both.

Lastly, you have basic gas credit cards. These products are gas station-specific, issued by companies like Shell, Valero, and Exxon. While these cards typically offer customers discounts on fuel and/or rewards on their spending at the pump, they’re not usually the best choice.

Why You Don’t Want Gas Station-Specific Cards

I’m sure you’ve seen ads while standing at the pump, offering you a discount on every gallon you buy just for applying for that company’s gas credit card. And while the promise of a $0.05-$0.20 discount (or more) can be tempting, they aren’t usually worthwhile.

The first downside to a gas credit card is that, like store-specific credit cards, they’re pretty much useless elsewhere. If you’re only buying gas through that one particular station, it’s not such a bad deal. However, if you ever use the pumps elsewhere -- or even want the flexibility to be able to do so -- you’re going to be disappointed.

Many gas credit cards can only be used at the gas station in question. Just like a credit card to your favorite boutique, these cards are limited to use at the issuing company. While you can still use them and earn rewards/discounts when you stop at that brand of gas station, you won’t be able to pull that card out anywhere else. What will you do when you’re on the other side of town, traveling, or just find cheaper gas down the block?

The next downside is the interest rate. Just like with retail credit cards, gas station-specific credit cards typically have higher-than-usually APRs. While the average interest rate on a rewards credit card is about 16%, it’s not uncommon to find interest rates in the high 20s or even 30s for gas credit cards. If you carry a balance for any period of time, this type of card will wind up costing you considerably more in interest.

Lastly, you may also be very limited in your earned rewards with a gas station card. Some of these cards won’t earn you rewards at all, in fact, only giving you a discount on your gas purchase when you buy. Others may limit your reward redemptions to statement credits or gas gift cards. Depending on your goal for your rewards -- such as saving up miles for some exciting trip -- this could put a kink in your plans.

What You Want from a Gas Card

When shopping around for the perfect gas card, there are a few things you’ll want to look for.

First, take a look at your spending habits. How much money do you spend at the pump each month and each year? Some rewards credit cards will offer you a higher percentage in cash back for gas purchases, but only up to a certain amount of spending. If you consistently go above that number, you won’t earn nearly as much back. For instance, there are cards that offer 3% back on gas purchases for the first $2,000 a year; if you spend more than that, you’ll only earn 1% back on the excess. Be sure to pick a card that fits your spending habits.

Then, take a look at where you buy. If you consistently fill up every single Saturday at the wholesale club down the road, it might make sense to get the card that earns you the most back on that type of purchase. However, if you fill up wherever is most convenient when your tank hits E, then you will want a more versatile rewards-earning product.

You’ll also want to ask yourself when you buy gas most. If you don’t drive very much, except for that annual roadtrip you take to go home for the holidays, this could impact the card that fits you best. For instance, there are rewards cards that offer a higher percentage back on gas purchases for one quarter of the year. If that matches up with your spending habits, you can earn maximum rewards when you need it most. Conversely, if you buy a tank a week every week, look instead for a card that offers high gas rewards all year long.

Lastly, think about how you want to earn and spend your rewards.

Points, Miles, or Cash Back?

The question of miles, gas, or cash back when it comes to credit card rewards is an oft-debated one. The answer is different for everyone, and really depends on how you plan to spend those rewards.

Some credit cards will only give you the option to earn statement credits. If this is exactly what you planned to do with that extra money, though, then you’re good to go!

However, if you had other plans for your rewards throughout the year, the wrong gas card can trip you up. For instance, some people spend all year long on rewards cards in order to rack up thousands of miles and points on all of their spending. These accumulated rewards can one day be cashed in for flights, hotels, or other adventures, and often at a higher redemption rate than if you just took a statement credit. If you don’t pick a card that offers these rewards on gas, though, you may be missing out on a great earning opportunity.

How to Double Up

We all want to spend less at the pump, and many of us care about earning great rewards on that spending. Luckily, you can double up and do both, with the right strategy.

Some gas stations will offer discounts on fuel with loyalty programs. Many of these programs are tied to local grocery stores, allowing your typical food purchases to save you money at the pump, too. Be sure to look into the fuel loyalty programs in your area and see if they align with your other spending habits, such as weekly grocery shopping. You could easily be saving $0.10-$0.20 on every fill-up, without any extra effort! Then, use a gas rewards credit card to double up on your savings.

What to Watch Out For

Before ever applying for a gas card, you’ll want to scan the fine print and ensure that the card you pick is the best card for you. There are a few key things that you’ll want to watch out for, and pitfalls to avoid.

First, the golden rule of earning rewards or getting discounts: it doesn’t matter how much a rewards card will save you, if you don’t pay off the balance each and every month. By carrying a balance, you will rack up interest charges on every dollar carried over; no matter how low of an interest rate you snag, it’s not likely to be higher than the rewards-earning rate.

So, even if you earn 5% back on every fuel purchase you make, that will get cancelled out by a 15% APR on your credit card balance. If you can’t pay off your balance in full each month, it’s smarter to forgo the rewards altogether and just pay in cash. Your future self, and your credit, will thank you.

Second, be sure to read the fine print on your rewards earning limits. Some cards will limit how much you can spend on gas in a year while still earning rewards. Go over that limit and you’ll either stop earning rewards, or earn them at a reduced amount. Check this against your spending habits at-present to figure out which card best fits your lifestyle.

You will also want to find a card that matches your gas station preferences. If you only fuel up at warehouse clubs, it won’t usually help to get a rewards credit card offering gas rewards; these fill-ups are usually categorized as “wholesale club” purchases and not “fuel” purchases, so you won’t earn those points anyway. Be sure that wherever you prefer to fuel up, your card of choice will earn maximum points.

You may also want to find a card that offers you purchase flexibility on gas, as well as everywhere else. While most rewards cards are ideal for one or two purchase categories, rather than being the best all-around, you can still find the one that best suits your habits. For instance, if you spend the most on gas and groceries each month, there are cards offering high rewards in both of those categories. This means that the same card can be used to earn rewards on all of your favorite places to shop, and you’ll earn the same type of rewards for both.

However, this isn’t a requirement. In fact, many credit card users utilize multiple credit cards to maximize their earning power. You may decide that one credit card is better for groceries and department store shopping, while a different gas card is ideal for your fuel purchases. There’s nothing wrong with utilizing a little strategy in the rewards earning game

Finding the perfect gas card for your family can be a bit tricky. It’s worth the effort, though, to find the one that best matches your spending and habits. After all, with the average family spending $2,000 a year on fuel -- and many spending well beyond that -- it’s a great category to optimize. Failing to do so could mean leaving hundreds of dollars in annual rewards on that table.

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