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What Is A Fuel Credit Card?

March 21, 2008 |

Fuel credit cards are one of the many reward options you have when you search for a new card. In fact many are finding that the fuel credit cards are the best to have right now based on the fuel prices you are being charged. If you want to get a little money back for what you pay at the pump you only have to apply for a fuel credit card.

Texaco gas station is just one of the many fuel credit cards you can acquire. They have three different options depending on who you are. For those who just want to save at the pump their basic card will work out great. You generally get anywhere from 1% to 6% cash back by having a fuel card and the Texaco card is no different.

Fuel credit cards will offer you different rewards based on the card you choose. The Texaco card offers cash back for paying at the pump with their card. Other credit cards will offer a penny to ten cents off a fuel purchase when you pay at the pump. It depends on the type of rewards you would like to have as to just the fuel credit card you should apply for. If you want immediate gratification because you don’t fill up that often a card offering a deduction on the fuel at that moment may be better than the cash back reward.

The cash back reward is harder to obtain. Yes, for every purchase you earn cash back, but you have to earn a certain amount before you actually get the reward. For example say you get 5% cash back on gas and convenience store purchases. If you use the card once a month and spend 20 dollars you will get five percent cash back for that purchase, but that is not a great deal of savings in the scheme of things. In fact it is a dollar savings each time you fill up. So, in a year if you only use it once for 20 dollars you will earn 20 dollars back. Most credit cards for fuel require that you earn at least 20 dollars before you get the reward. The reward is then applied to either the card balance or can be issued to you for a rebate on gas the next time you fill up. As you can see there are cases where the card is not as beneficial as getting ten cents off. While ten cents is not a lot either, you are at least getting it right away and able to apply it to the fuel purchase.

So when you go to obtain a fuel credit card from Texaco, CITGO, USAA, or any of the other gas stations you should first look at the options they give you and what would be the best for your life and situation. If you are spending 40 dollars every time you fill up and getting ten cents off that is quite a savings.

Oge Nwaozuzu is a writer about credit cards at Gas Credit Cards

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