How Do Gas Credit Cards Work?

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Gas prices have gone up and down a lot lately, and no matter how much you're paying these days, you're probably paying more than you would like. Although some people cut gas costs by biking or taking public transit, for many people, it’s just not an expense you can give up completely.

You can’t change the pump’s prices, but you can make your gas spending go a little further with the right credit card. We are breaking down the difference between a gas card and gas rewards credit card so you can decide which is better for your wallet.

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What Is a Gas Credit Card?

A gas-branded credit card is one issued by an oil company, usually in partnership with a bank. Many gas-branded cards can only be used at that specific fuel station, but research each fuel company's offerings for exact rules. For example, Shell offers a Fuel Rewards Credit Card and a Fuel Rewards Mastercard. The latter can be used on non-Shell purchases and earns rebates on dining and select expenditures.

Gas credit cards typically don't have any fees and allow you to save a set amount off of each gallon of gas purchased. Some cards come with rewards on nonfuel purchases made at the fuel station too.

How Do Gas Credit Cards Work?

Gas credit cards work similarly to a store credit card. For example, if you have a Kohl’s or JCPenney credit card, you know that your card is only useful at those stores. Like all other credit cards, you will be required to pay a monthly minimum and any amount that is carried over to the next month will earn interest. Gas credit cards generally have a higher interest rate than average rewards cards.

Here are some popular gas credit cards:

• Shell Fuel Rewards Credit Card
• Techron Advantage Card
• ExxonMobil Smart Card
• Sunoco Rewards Credit Card

People with fair credit typically have an easier time being approved for gas cards than some other credit cards, and gas cards can be a good choice for those who are looking to rebuild their credit. Since you can only use the card for gas, it will be harder to rack up the bill, making it easier to keep track of.

Recommended Credit Cards

Credit Card	Rewards Rate	Annual Fee	Bonus Offer	Learn More
Chase Sapphire Preferred® Apply Now	1x- 5xPoints More Info Enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, $50 Annual Chase Travel Hotel Credit, plus more.	$95	60,000Chase Ultimate Rewards Points More Info Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. Dollar Equivalent: $1,380 (60,000 Chase Ultimate Rewards Points * 0.023 base)	Apply Now
Southwest Rapid Rewards® Plus Credit Card Apply Now	1x - 2xPoints More Info Earn 2X points on Southwest® purchases. Earn 2X points on Rapid Rewards® hotel and car rental partners. Earn 2X points on local transit and commuting, including rideshare. Earn 2X points on internet, cable, and phone services; select streaming. Earn 1X points on all other purchases.	$69	$400 statement credit + 40,000 pts.Southwest Rapid Rewards Points More Info Earn a $400 statement credit and 40,000 bonus points after spending $3,000 on purchases in the first 4 months from account opening. Dollar Equivalent:	Apply Now
Wells Fargo Active Cash® Card Apply Now Rates & Fees	2%Cashback More Info Earn unlimited 2% cash rewards on purchases.	$0	$200Cash Bonus More Info Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.	Apply Now Rates & Fees
Citi Custom Cash® Card Apply Now Rates & Fees	1% - 5%Cashback More Info Earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter. Also, earn unlimited 1% cash back on all other purchases. Special Travel Offer: Earn an additional 4% cash back on hotels, car rentals, and attractions booked on Citi Travel℠ portal through 6/30/2026.	$0	$200Cash Bonus More Info Earn $200 in cash back after you spend $1500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® points, which can be redeemed for $200 cash back.	Apply Now Rates & Fees

Rewards Credit Cards vs. Oil Company Gas Cards

So, you know you want to be rewarded at the pump, but you still aren’t sure if you should go for a rewards card with gas perks or an oil-company card? We’ll help you do the math.

Features of a rewards gas card:

• Earn rewards: Many rewards cards let you earn points or cash back on the amount you spend on fuel. You'll earn the same percentage back on any gas station you use so you don’t have to be a company loyalist.
• Other perks: Rewards credit card comes with other perks, as well as more opportunities to earn points or cash back on other spending. You can choose a card based on your spending habits to reap the most rewards.

Features of a co-branded oil-company card:

• Discounts: Co-branded gas cards typically offer cents off per gallon or cents per gallon rebates. For example, the Techron Advantage Visa card allows cardholders to earn a certain number of cents per gallon at Chevron and Texaco for a period of time after opening the account.

Gas Card Pros and Cons

Here's a look at the pros and cons of those co-branded oil company gas cards.

Gas Rewards Credit Cards Pros and Cons

On the other hand, gas rewards cards also have their benefits and drawbacks.

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How to Choose a Credit Card for Gas Rewards

When choosing the right card for your gas rewards, don’t just look at how much you earn for spending. Compare these important factors too:

• Rewards cap: Check if there is a limit to how much you can earn on your annual gas spending. Some cards might offer 5% cash back on gas for one quarter’s spending and then drop it down to 1%.
• Annual fee: Annual fees are not an automatic deal-breaker, but weigh the card’s perks against the fee.
• Redemption value: How can you spend your gas rewards? Cards with redemption flexibility allow you to use your rewards to benefit your budget and lifestyle.
• Membership requirements: Some credit cards have warehouse membership fees and rules that you'll want to review so you know any expenses or limitations you're in for.

How Much Money Can a Gas Credit Card Save You?

On average, Americans spend $3,120 per year on gas, according to 2022 data from the U.S. Bureau of Labor Statistics. Your number might be higher if you are a regular commuter or drive a large vehicle. With an average gas price of $3.31 per gallon, per November 2023 data from AAA, that comes out to almost 943 gallons per year. Using those stats, here’s how much you would save with a gas credit card versus a rewards credit card:

• A gas card that saves 5 cents per gallon: $47.15
• A rewards card that earns 2% back: $62.40
• A rewards card that earns 3% back: $93.60
• A rewards card that earns 5% back: $156.00

Choosing a rewards card that earns 2% or more cash back on gas will save you more on your gas purchases. While gas spending is pricey, there's probably another spending category (such as groceries or dining out) that you spend more on. Look for a card that will reward you both for gas purchases and your other frequent purchases.