As gas prices continue to rise, consumers are looking for ways to save money at the pump. One option is to apply for a gas rewards credit card. With so many options on the market, it can be challenging to determine which gas card is the best fit for you.
In this article, we will explore the factors to consider when choosing a gas card, the top gas cards to consider, a comparison of gas cards, and tips for using gas cards effectively.
When choosing a gas card, there are several factors to consider, including rewards programs, sign-up bonuses, annual fees, and APR rates.
Rewards Program
One of the most critical factors to consider is the rewards program. Look for a gas card that offers cashback or points for gas purchases. Some cards offer higher rewards rates for gas purchases, while others offer a flat rate on all purchases.
For example, the Chase Freedom Unlimited card offers 1.5% cashback on all purchases, while the Costco Anywhere Visa Card by Citi offers 4% cashback on gas purchases up to $7,000 per year (then 1%). Consider your spending habits and choose a card that offers the most significant rewards for your needs.
Sign-up Bonuses
Another factor to consider is the sign-up bonus. Many gas cards offer a sign-up bonus, which can range from $50 to $300. To receive the bonus, you typically need to spend a certain amount within the first few months of opening the account.
For example, the Wells Fargo Propel American Express Card offers a sign-up bonus of 20,000 bonus points (worth $200) when you spend $1,000 in the first three months. Look for a card with a sign-up bonus that you can easily achieve based on your spending habits.
Annual Fees
Annual fees are another factor to consider when choosing a gas card. Some cards have no annual fees, while others can have fees of up to $95 per year. Consider the rewards program and sign-up bonus compared to the annual fee to determine if the card is worth the cost.
For example, the Bank of America Cash Rewards Credit Card has no annual fee and offers 3% cashback on gas purchases. The Discover it Cash Back card also has no annual fee and offers 5% cashback on gas purchases (up to $1,500 per quarter), but the rewards rate only lasts for a limited time.
APR Rates
Lastly, consider the APR rates when choosing a gas card. If you plan to carry a balance, look for a card with a low APR rate. Some gas cards offer 0% APR for an introductory period, but the rate will increase after the period ends.
For example, the Bank of America Cash Rewards Credit Card offers a 0% APR for the first 15 billing cycles, then a variable APR of 13.99% – 23.99%. Consider your ability to pay off the balance each month and choose a card with a reasonable APR rate.
Stay tuned for the next two sections.
Top Gas Cards to Consider
Now that you know the factors to consider when choosing a gas card, let’s look at some of the top gas cards on the market.
Chase Freedom Unlimited
The Chase Freedom Unlimited card offers 1.5% cashback on all purchases, with no annual fee. It also offers a sign-up bonus of $200 when you spend $500 in the first three months. While it doesn’t offer a high rewards rate for gas purchases, it’s a great all-around credit card.
Costco Anywhere Visa Card by Citi
The Costco Anywhere Visa Card by Citi offers 4% cashback on gas purchases up to $7,000 per year (then 1%), as well as 3% cashback on restaurant and travel purchases, 2% cashback on Costco purchases, and 1% cashback on all other purchases. It has no annual fee, but you need to be a Costco member to apply for the card.
Wells Fargo Propel American Express Card
The Wells Fargo Propel American Express Card offers 3% cashback on gas purchases, as well as on dining, travel, and streaming services. It also offers a sign-up bonus of 20,000 bonus points (worth $200) when you spend $1,000 in the first three months. It has no annual fee and offers a 0% APR for the first 12 months.
Bank of America Cash Rewards Credit Card
The Bank of America Cash Rewards Credit Card offers 3% cashback on gas purchases, as well as on online shopping, dining, travel, drugstores, and home improvement/furnishings. It also offers a sign-up bonus of $200 when you spend $1,000 in the first 90 days. It has no annual fee and offers a 0% APR for the first 15 billing cycles.
Discover it Cash Back
The Discover it Cash Back card offers 5% cashback on gas purchases (up to $1,500 per quarter), as well as on rotating categories that change every quarter, such as groceries, restaurants, and Amazon.com. It also offers a sign-up bonus where Discover will match all cashback earned in the first year. It has no annual fee and offers a 0% APR for the first 14 months.
Comparison of Gas Cards
To help you choose the best gas card for you, let’s compare the top gas cards based on rewards programs, sign-up bonuses, annual fees, and APR rates.
Rewards Programs
When it comes to rewards programs, the Costco Anywhere Visa Card by Citi offers the highest rewards rate for gas purchases at 4%. However, the Wells Fargo Propel American Express Card and Bank of America Cash Rewards Credit Card both offer 3% cashback on gas purchases, as well as on other categories such as dining and travel.
Sign-up Bonuses
The Wells Fargo Propel American Express Card and Bank of America Cash Rewards Credit Card both offer sign-up bonuses of $200, while the Discover it Cash Back card offers a unique sign-up bonus where Discover will match all cashback earned in the first year. The Chase Freedom Unlimited card offers a sign-up bonus of $200 when you spend $500 in the first three months.
Annual Fees
All of the cards listed above have no annual fees, making them great options for those looking to save money on gas purchases.
APR Rates
The Bank of America Cash Rewards Credit Card offers a 0% APR for the first 15 billing cycles, while the Wells Fargo Propel American Express Card offers a 0% APR for the first 12 months. The Discover it Cash Back card offers a 0% APR for the first 14 months. Consider your ability to pay off the balance each month and choose a card with a reasonable APR rate.
Overall, each gas card has its pros and cons. Consider your spending habits and priorities to choose the gas card that offers the most significant rewards for your needs.
Tips for Using Gas Cards Effectively
To make the most of your gas card, consider these helpful tips:
Pay off the Balance in Full Each Month
To avoid paying interest charges, make sure to pay off the balance in full each month. If you cannot pay off the balance, consider a card with a low APR rate.
Use the Card Only for Gas Purchases
To maximize the rewards, use the card only for gas purchases. Avoid using the card for other purchases, especially if the rewards rate is lower.
Keep Track of Rewards and Bonuses
Make sure to keep track of your rewards and bonuses. Some cards have expiration dates for rewards, and you don’t want to miss out on cashback or points.
Use the Card at the Right Gas Stations
Some cards offer higher rewards rates or bonuses for specific gas stations. Make sure to check which gas stations are eligible for rewards and use the card at those stations.
Conclusion
In conclusion, choosing the best gas card for you depends on your spending habits and financial goals. When choosing a gas card, consider the rewards program, sign-up bonuses, annual fees, and APR rates. Some of the top gas cards to consider include the Chase Freedom Unlimited, Costco Anywhere Visa Card by Citi, Wells Fargo Propel American Express Card, Bank of America Cash Rewards Credit Card, and Discover it Cash Back.
To use your gas card effectively, make sure to pay off the balance in full each month, use the card only for gas purchases, keep track of rewards and bonuses, and use the card at the right gas stations.
At JDS Cycle, we recommend the Bank of America Cash Rewards Credit Card as the best gas card to apply for. With no annual fee, a 3% cashback on gas purchases, and a 0% APR for the first 15 billing cycles, this card offers great rewards for gas purchases without breaking the bank.
