As oil prices continue to rise, finding the best credit card for fuel can be among your top priorities if you commute with your vehicle frequently. Companies issuing these cards collaborate with oil companies to provide attractive offers whenever you refuel your vehicle.
Since there are a plethora of offline and online credit card options available, you need to choose one that matches your spending pattern at fuel stations. The key to doing this is to understand the benefits these cards offer and compare them to select one that suits your needs.
That said, keep the following considerations in mind when finding the best credit card for fuel:
Things to Consider Before Finding the Best Credit Card for Fuel
Fuel Surcharge Waiver
Credit card companies levy a surcharge to process the transactions made at fuel stations. While some companies charge a flat rate ranging between 1%-2.5%, others may set a fixed charge. And although this charge may seem small, it can have a big impact on your savings in the long run.
Thankfully, many credit card issuers provide a waiver, partly or entirely, on this surcharge.
In fact, this fuel surcharge waiver is one of the key benefits of a fuel credit card and significantly boosts your savings, especially on long road trips. However, it does come with some terms and conditions.
For instance, some financial institutions offer a 100% waiver of the surcharge, setting off the entire fee of using credit cards at fuel stations. However, some may not provide the same or put a cap on the maximum waiver you can claim. So, you must compare these to choose one where you can maximise your savings.
Rewards on Fuel Purchase
To get the most out of your card, ensure that it offers attractive rewards on your fuel purchases. Before finalising which credit card to choose, verify that its reward structure aligns with your spending patterns.
Additional Benefits for Vehicle Owners
On top of fuel savings and rewards, credit cards for fuel also provide a diverse range of complimentary benefits. For instance, some fuel credit cards may offer roadside assistance, discounts on travel bookings, and insurance coverage.
You can consider the benefits relevant to your travel needs when choosing a card that offers optimal value.
Partner Fuel Company
Many issuers offer co-branded credit cards, where they collaborate with an oil company to provide exemplary benefits on fuel purchases. Apart from a fuel surcharge waiver, you can also avail of added benefits when refuelling your vehicle using this credit card.
These benefits can range from discounts on dining services or travel bookings to bonus reward points.
Non-Fuel Benefits
Having a fuel credit card doesn’t mean that you have to compromise on regular benefits. When choosing a credit card, ensure that the card you select provides rewards for spending on diverse categories other than fuel.
With such analysis, you can get a credit card that allows you to earn rewards that go beyond fueling the tank.
Finance Charges
When you use a credit card, there may be instances where you can’t pay the entire bill on time. If this happens, you will have to pay interest charges on the outstanding balance. This charge is compounding, so you must pick a card with low rates to keep the cost manageable.
Fees and Charges
Like regular credit cards, these financial instruments also come with certain fees and charges. These include:
- Joining or annual fee
- Late payment fee
- Cash advance fee
- Redemption charges
Since these charges affect your cost of maintaining a credit card, you should compare these costs to choose the most cost-effective option.
Redemption Options
Most credit card issuers offer a variety of ways to redeem the points you earn. You can redeem them at partner fuel stations or for shopping at select retail stores. Some companies even allow you to trade them for gift vouchers.
For convenience, most issuers also allow you to redeem them online. However, the process varies, and you should choose one that will enable you to make the most of your points.
With this knowledge on how to compare your options, you can choose the best credit card for fuel and get the best value from it. By prioritising rewards, you can unlock significant savings at fuel pumps.
If you want a card that allows greater savings on refuelling across the country, get the One Credit Card. Along with 5X rewards in the top 2 spending categories, you can also get a 1% waiver on fuel surcharge up to ₹400 per month with this premium metal card.
What’s more, you can control your credit card expenses and convert big bills into EMIs with its user-friendly mobile app. You can also quickly complete the online credit card application and make your payments rewarding. Apply now to keep your financial objectives in the driver’s seat!
