The ABCs of a gas credit card for money-savvy generation

If you are looking for guidance before buying a gas credit card, you have come to the right place. There are a number or options available for buying gas for your car. In fact, traditional gas stations have to face tough competitions as grocery stores are also selling gas in the market nowadays. Gas companies began issuing credit cards in order to keep a track on gas purchases and consumer's overall spending cost on transportation.

Read ahead, to know how to choose the right gas credit card, which offers the best deals and terms as well.

Things to consider while select a gas credit card

1. Make a list

Your first and foremost duty is to make a list of gas stations located near your area, including the gas stations that you pass while commute to and from school or work. Make a note, which gas stations come across your way more often.

2. Collect the application forms

Your next step should be collecting gas credit card applications from at least three gas stations, which are at the top of your list. Application forms and term information are available in the gas station and in case you can not obtain a hard copy of the application, you can download it from the main websites of the gas stations.

3. Go through the norms

Browse through the terms and conditions given on the fine print thoroughly. Take a note of information that you need to compare, for example, the annual fees, minimum payment amounts, rewards or bonus incentive structures. Make a note whether or not the gas credit cards could be used elsewhere besides the gas station and also check whether or not it could be used to purchase other items besides gas at the gas station.

4. Evaluate your profit

Compare interest rates charged on different gas credit cards. Once you get the most viable rate, compare it to the interest rate you are currently paying on your other credit cards. Make sure you choose the most cost effective credit card for gas purchases. Compare all card fees and benefits thoroughly. Be certain you apply for the secure gas credit cards that do not charge an annual fee. Use different credit cards for different stations that you use.

Which gas credit card is most suitable for you?

This answer will depend on your location and on your spending habits. Generally, you can get two types of gas rewards from your credit card company

1. Gas station-affiliated credit cards

If you buy gas from affiliated station, then only you can save money on gas. If you like to buy gas from one particular station, then this type of gas credit card is best suited for you.

2. Gas credit card issued by credit card company for rewards

This card offers rewards even if you buy gas from any station. This card allows you to buy from any station of your choice and anywhere. This card is more popular for its flexibility.

Points to consider when obtaining a gas credit card

• Ask the agent if there is any annual charge for this credit card?
• Find out if the card can be used to earn rewards from stores, restaurants, grocery stores, pharmacies?
• Be sure about the spending level. In case you're not sure about it, then call the customer service for details.
• Ask about the spending level before obtaining the card.

Lastly, a gas credit card can be very useful for your daily life. If you buy regular gas from a particular station, you may go for branded gas credit card to get rewards. Be very careful and read thoroughly the terms and condition while obtaining gas credit card.