If your job or any other commitment requires a car trip, you probably run hundreds of miles every month. Visiting a pump several times a week became your routine. Due to the price jump in the last months, the fuel expense might be a significant burden for you.
Paying in cash is not always the best solution. If for no other reason, then because it’s not always safe to carry it with you. For those who visit pumps often, a gas card might be a great deal. If your credit card has a reward program including tanking, it can work, too.
On the source below, find out why electronic money becomes the best payment method: https://www.thebalance.com/is-a-credit-card-better-than-cash-960221
Fuel companies offer this payment method with rewards because most consumers already use it from their bank or other financial institution. You probably know how electronic money works; the same thing is with gas cards.
Know Your Gas Use and Needs
You need to look at how much fuel you use each month to determine how much your payment will be each month. This information is of vital importance, as it will help you set your card limit. If you take the one with no limitation, you might get in trouble.
The best thing you can do is to opt for prepaid cards. The reason why they work so well is the monthly limit you set. When you use your electronic money at the pump, you will pay out only what you spend. That can help you keep your balance low.
If your monthly fuel expenses vary, you can opt for a gas card that offers the option to pay off your balance at the end of each month. The good thing is that you can also set limits on them, but only with certain brands. So be careful with your choice.
Choose the Right Issuer
Gas credit cards are private labels issued by petrol companies or their partners. For example, if your employer cooperates with a certain oil company, you can enjoy benefits as an employee. These are usually points or cash that you can use to get a discount at gas stations. In this case, you can’t choose where to refuel if you want rewards, but it must be specific pumps.
But if you want to get a gas card for your own needs, think carefully about the issuer. You can check resources like Kredittkortinfo – bensinkort to get more information about available options. You can choose based on several criteria. But you should matter the fees and the percentage of the rebate or cashback the most.
Some brands go as high as 5 percent. But if their pumps are far away, driving all the way there can be a hassle. Maybe the reward isn’t worth it. Then you should choose brand cards whose pumps are closer to you, even if rebate amounts are not high. They usually have special offers that you can take advantage of.
It’s always a good idea to check out what each gas issuer has to offer and see if it fits into your budget. You should look for companies providing a low-interest rate and no annual fee. Also, you need to make sure that you make the monthly payments on time (if you opt for credit instead of a debit or prepaid card). If you don’t, you will start paying off interest which will cost you money.
Pay Your Balance on Time
It is really important to know your fuel usage to plan your budget and repay your debts regularly. If you are regular in your payments, you are eligible to get rewards. Another thing to do is to maintain your accounts. If you keep on making purchases regularly, then the issuer will eventually increase your limit.
Your task is to pay off your balance at the end of each month, which will make you enjoy even more rewards. Also, that helps in keeping the interest rate low. Paying this fee can negate any discount you got.
Settling your balance on time can have a positive effect on your credit score. As a gas card is pretty much the same thing as any other credit card, any delay is recorded in the system. Once you have depleted your entire credit line, you can’t apply again for this perk. Also, that can get you in trouble one day when you need a loan or mortgage.
Get Familiar with Reward Program
If you already have a gas card, you should see what kind of savings you can get each month. Logically, the more you spend on fuel, the higher the rewards will be. If you have high monthly expenses on gasoline, you may even want to consider getting an annual gas card.
These perks should spur you to make more purchases. Depending on the issuer, the reward program doesn’t have to bring only gas benefits. Earning rewards allow you to get miles for traveling, dollars for other purchases, etc. Of course, make sure that you always pay your bill on time each month, as that will help you get these privileges.
Another thing you have to take into account is where you buy gas. If you care about getting points or cash back, ask if the pump you are on is in the reward program before you fill the tank. In most cases, gas stations that are not part of large chains don’t participate in such programs.
Use the Rewards Regularly
Whenever you can, opt for an issuer with the lowest interest rate. But if your monthly fuel consumption is high, a high cashback or rebate will mean more to you. Getting great rewards will offset the fees and interest rate you pay.
Another great tip is to use your rewards regularly. Some programs cap your discounts or set a minimum threshold for cashing out. Think of those details before opting for a gas card of a particular brand.
Sometimes, these perks are limited. So whatever the reward you get, use it. You can easily lose these benefits if you forget to spend them on time. Cut your costs and cancel your card’s membership if you don’t use it regularly.
Gas rewards cards are a great way to get a little extra spending money for drivers. If you don’t have one of these cards, you may be paying too much in fuel every week. The gas companies themselves make more than enough profit from the prices that you pay at the pump. But by having a gas rewards card, you can save a lot of money and enjoy extra purchase perks every month.