Best Credit Cards for Buying Gas
With the right card in your wallet, you can maximize the cash back, points or miles you earn at the pump.
While gas prices have recovered from the extreme highs we saw in 2022 Americans across the nation still spend an average of $2,000 to $3,000 a year on gas, according to a study run by Bankrate, If you own a vehicle and spend that much or more on gas every year, it may make sense to get a cash rewards credit card for buying gas.
No, we're not talking about the gas cards offered by gasoline companies like Shell and BP. The best rewards credit cards for gas stations offer accelerated rewards at gas stations, as well as great rewards on other everyday purchases you make.
How to Choose a Credit Card for Gas Rewards
When choosing the right card for your gas rewards, don’t just look at how much you earn for spending. You want to compare these important factors too:
1
Check if there is a Rewards cap
Is there a limit to how much you can earn on your annual gas spending? Some cards might offer 5% cash back on gas for one quarter’s spending (usually three months) and then drop it down to 1%.
2
Look for an Annual fee
Annual fees are not an automatic deal-breaker, but you need to weigh the card’s perks against the fee.
3
Determine the Redemption Value
How can you spend your gas rewards? Cards with redemption flexibility will allow you to use your rewards to benefit your budget rather than being wasted on programs that use points for magazine subscriptions.
4
See if a Membership is Required
Some credit cards have warehouse membership fees and rules attached to it.
How Much Money Can a Gas Credit Card Save You?
On average, Americans spend $5,000 per year on gas. Your number might be higher if you are a regular commuter or drive a large vehicle. With an average gas price of $3.85 per gallon, that comes out to almost 1,299 gallons per year. Using those stats, here’s how much you would save with a gas credit card versus a rewards credit card:
A gas card that saves 5 cents per gallon: $64.93
A rewards card that earns 2% back: $100
A rewards card that earns 3% back: $150
A rewards card that earns 5% back: $250
Choosing a cash rewards credit card that earns 2% or more cash back on gas will save you more on your gas purchases. While gas spending is pricey, there is probably another spending category (such as groceries or dining out) that you spend more on. Look for a card that will reward you both for gas purchases and your other frequent purchases.
Methodology
There are a lot of credit cards out there that offer bonus rewards on gas purchases or simply high rewards rates on every purchase you make. We picked our top five based on the overall value they can provide. We looked at the other bonus rewards rates the cards offer and focused on cards that provide extra cash back or points on purchases you're likely going to make regularly.
In general, we focused on credit cards with no annual fee, so you don't have to worry about figuring out how to make the card worth it every year. But in the case of the Blue Cash Preferred Card from American Express, we chose it because it makes it easy to recoup the annual fee every year.
Comments
No comments yet.
