Why a Gas Rewards Card Makes Sense
The average American household spends over $2,000 a year on gasoline. If you're putting that spending on a debit card or paying cash, you're leaving money on the table.
A credit card with gas rewards can earn you 2% to 5% back on every fill-up. That's $40 to $100 a year back in your pocket, just by using a different payment method.
How Gas Rewards Cards Work
Gas rewards credit cards earn you cash back or points when you buy fuel. But not all gas rewards work the same way.
Flat-Rate Cash Back
Some cards offer the same cash back percentage on all purchases, typically 1.5% to 2%. While not gas-specific, these cards simplify things because you don't need to think about categories.
Bonus Category Cards
Other cards offer elevated rewards (3% to 5%) specifically at gas stations. Some rotate categories quarterly, while others keep gas as a permanent bonus category.
The catch with rotating categories is that you usually need to activate the bonus each quarter. Forget to activate, and you earn the base rate instead.
Station-Specific Cards
Some gas station brands offer their own credit cards with discounts at the pump. These typically save you 5 to 25 cents per gallon at that brand's stations.
The downside is limited usability. A Shell card only saves you money at Shell stations, which may not always be the most convenient option.
Tips to Maximize Your Gas Savings
Stack discounts. Some grocery store loyalty programs offer fuel points. Combine these with your credit card rewards for double savings.
Pay in full every month. Interest charges will quickly erase any rewards you earn. If you're carrying a balance, the math doesn't work in your favor.
Use apps to find the cheapest gas. Apps like GasBuddy help you find the lowest prices in your area, and combined with card rewards, your savings multiply.
Watch for spending caps. Some bonus categories have spending limits. After you hit the cap, you earn the lower base rate. Know your card's limits so you can plan accordingly.
Options for People Building Credit
If you're new to credit or rebuilding, you can still save on gas. While the highest-earning gas rewards cards typically require good credit (670+), there are options for every credit level.
Secured credit cards with flat-rate cash back let you earn rewards on gas while building your credit at the same time. The rewards rate may be lower (1% to 1.5%), but you're also building toward qualifying for better cards in the future.
Some credit builder cards also offer modest cash back, making them a good dual-purpose tool.
Making the Right Choice
The best gas card for you depends on how much you drive and what your credit looks like. If you're spending $300+ per month on fuel, a dedicated gas rewards card will save you real money over time.
For everyone else, a general cash back card with a solid flat rate might be the simpler and more flexible choice.
Want to start earning rewards while building your credit? Check out what Firstcard has to offer.
