Their names may seem to be interchangeable but are gas credit cards always the same as gas reward credit cards? If you’re confused about these two types of credit card, let’s discuss these differences and how you can choose the right card for you.
Gas Station Credit Cards
A gas credit card is a purchase card issued by the gasoline company itself. If you often refuel from a specific gas station, it is a good idea to apply for a gas credit card from that particular gas company to avail of discounts and privileges that are exclusive only for gas credit card holders. Many gasoline companies offer promos from time to time as a way to thank their loyal customers. And if you own a gas credit card, then it definitely shows that you’re a regular customer and that you deserve special treats.
Applying for a gas station credit card is easy and quick. You may have to submit a one-time membership fee or there could be a small annual fee to keep your membership active. Some gas companies may volunteer to give you a gas station credit card or a privilege card after reaching a quota from your total gas purchases.
However, take note that these credit cards can only be used to purchase from the gasoline station that issued your card or participating branches. You are also expected to pay back your balances each month as you are not allowed to carry over balances.
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People who don’t have a credit history or who may have poor credit and can’t qualify for a regular credit card may obtain a gas credit card to rebuild credit. By getting a gas credit card that reports to the credit reporting agencies and by submitting monthly payments on time, you can build up your credit history one step at time.
Credit Cards with Gas Rewards Programs
What about gas reward credit cards? These are regular credit cards that are issued by banks and credit card companies. However, these reward credit cards particularly offer gas rewards and they are especially designed for people who are frequently on the road.
If you own a car and if you spend a lot on gasoline expenses, you may think about getting a gas reward credit card to enjoy bonuses and savings. Some gas reward cards offer 1% rebate per dollar spent on the card while others offer 5% rebate on gas purchases.
Unlike a gas station credit card, credit cards with gas rewards extend an available credit so the cardholder can carry over balances from one billing period to the next and submit only a minimum payment.
In addition, issuers of gas reward credit cards check individual credit reports before granting approval. In fact, the best gas reward credit cards in the market usually require good to excellent credit history. Compared to gas station credit cards, a credit card with gas rewards program offers more flexibility, more privileges and bigger incentives.
