How to Choose the Beste Bensinkort or Gas Credit Card

What is a Gas Credit Card?

A gas credit card is usually a branded credit card from an oil company. These cards usually offer you some cash off for gas purchases, and sometimes offer cash off from other purchases at the same gas station. Most of the time, these cards do not charge you any fees for using them.

There are many places that offer these cards, and you will have to do research to see which one best fits your lifestyle. You can check out https://www.kredittkortinfo.no/bensinkort to see what they have to offer. They have some reviews about gas cards, as well.

This article will help you to see more information about gas cards and how they can benefit you. It will also help you to see how they work and some of the cons about them, as well. Hopefully, you will get the information that you need to have before you apply for a card.

How Do Gas Credit Cards Work?

These cards are similar to store credit cards that are branded to your favorite department store. Instead, they are for your favorite gas station and will help you to save money at the pump, which is important when you have gas prices that are going to be over $4 a gallon. These gas cards will only be good at the gas station that offers the card. For example, you can get a Shell gas station card but you can only use it at a Shell station.

These cards are good for people who have fair credit or better and are easier to qualify for. These might be good for people who want to rebuild their credit since they are easier to qualify for. It will also be easier for those people to keep track of their spending since it is only used for gas.

Differences Between Rewards Cards and Gas Cards

A rewards card can offer rewards of cash off purchases or other rewards. You can usually use these cards anywhere that you want. These cards can be used for fuel and many offer cents of fuel, but you do not have to use it at one place.

Gas cards must be used at the station that issued it and nowhere else. This means that you might sometimes have to go out of your way to find the station. There are times that you could use a specific branded card at other places and save money there, as well.

Pros for Gas Cards

1. Better Approval Chances

A gas card offers you better approval chances because your credit score does not need to be as high as one that just offers rewards. This would be good if you are just starting out or if you have bad credit that you want to rebuild. If you have been denied reward cards, you might very well be approved for a gas card.

2. Card Limits

These cards usually come with a lower credit limit making it easier for you to control your spending. It is good for people who are just getting used to using credit cards because it easier to pay back when you have a smaller limit. It is also good for people who are rebuilding their credit.

3. Comes With Limited Protection

These cards also come with some limited fraud protection to help you in case that they are lost or stolen. They will be protected from someone using it and spending up to your limit. This can be better than using other types of cards at the pumps.

4. Cents Off for Each Gallon

Another benefit for a gas card is that you will get cents of each gallon with each purchase. This might only be a few cents per gas purchase, but that could easily add up to a hundred dollars per year. This is a lot more than you would expect from using your debit card.

Cons of Gas Cards

1. High Interest Rates

You will want to make sure that you pay off your balances each month to save on interest fees because they can quickly become more than what you save on your purchase. These cards will not save you if you still have to pay the extra interest fees on them. If you pay the balance off each month, you will not have to pay the interest fees. Here are some fees that are associated with these cards: https://www.consumerreports.org/credit-cards/is-a-gas-credit-card-worth-it-a1120939363/. These fees are another consideration that you need to think about.

2. Limited Rewards

The only rewards that you will receive on these cards is the cents of your gas purchases. Other reward cards can offer more than that and possibly save you more money. Other reward cards might not offer you any cents off at the pump.

3. Reward Caps

There are caps to the rewards that you can receive each month with most of these cards. These reward caps might not make the cards even worth the effort of applying for them. It might make a regular reward card a better choice for you.

Pros of Rewards Cards

1. Earn More Back on Many Things

With a rewards card, you will earn cash back on more items than just gas. You can save on many other things that you use every day. You can also earn points for things that you may want to buy, as well.

2. Redeem Your Rewards on What You Want

You can redeem you’re your rewards on more things, as well. You will not be limited to just gasoline. You could even use it for groceries and other items that you use daily.

3. Better Interest Rates

You will have better interest rates with the rewards cards saving you more money than the gas cards. You will still want to pay your balances of each month to save even more money, but you will not need to worried as much about it.

Cons of Rewards Cards

1. Stricter Approval

It is harder to get approved for the rewards cards. This means that you must have a better credit score and better credit history. Your credit score should be at least 600 or more to qualify for these. See here for more information about credit scores. You will want to make sure that your credit score is where it needs to be.

2. Annual Fees

Most of the rewards cards charge you annual fees with them. These fees can be as high as one hundred dollars or more each month. This can take away any savings that you have each month.

How to Choose the Right One for You

When you choose a card you want to consider a few factors. These factors can make or break the card for you. You will want to choose a card based on these factors. You will want to see what the rewards cap is. You will also want to see if there is an annual fee and what that fee is. Another thing to consider is redemption value; how will you be able to use your rewards. There may also be membership fees to consider. In the long run, these might make it less valuable to you.

Conclusion

There are many things that you need to consider before you choose a gas card or a rewards card. You will want to make sure that you get the right one for you and your particular circumstances.