With gas expenses taking up a large chunk of people's budgets, using a Gas Credit Card can help lessen the pain at the pump. Gas prices have been notoriously high in recent years. As of February 2024, the national average for a gallon of regular gas is $3.66 This is down from over $5 a gallon in mid-2022, but still significantly higher than the sub-$3 prices seen before 2021.
How Gas Credit Cards Work
Gas credit cards are rewards credit cards that offer bonus rewards, usually 2% to 5% cash back, on gas station purchases. For example, the Costco Anywhere Visa by Citi offers 4% cash back on eligible gas purchases worldwide. This means if you spend $100 on gas with this card, you’d earn $4 in cash rewards. These rewards are in addition to credit card points you may earn for other non-gas purchases.
Some gas cards require you to make your fuel purchases at certain gas station brands to earn the higher percentage rewards. However, many cards offer universal gas rewards, not tying them to any specific gas brands or stations. Be sure to check the complete details and restrictions on gas purchase rewards before signing up for any card.
To maximize potential savings, look for a gas credit card that gets you the highest percentage rewards back on gas purchases. From there, also consider other card features like signup bonuses, interest rates, annual fees, and rewards earning rates on all other non-gas purchases.
Top-Rated Gas Credit Cards for 2024
The following are the best gas credit cards to consider applying for based on rewards, interest rates, fees, and other key details:
Costco Anywhere Visa by Citi
- 4% cash back on the first $7,000 in gas purchases each year (then 1% back)
- No annual fee (with paid Costco membership)
- 0% APR for the first 15 months, then a 13.99% to 23.99% variable APR
Wells Fargo Autograph Card
- 3% cash rewards on gas purchases
- $0 annual fee
- 0% introductory APR for 18 months, then a 13.99% to 23.99% variable APR
Citi Premier Card
- 3% cash back rewards on gas purchases
- $95 annual fee
- Intro 0% APR for 12 months then a 15.99% to 23.99% variable APR
Blue Cash Preferred Card from American Express
- 6% cash back at U.S. gas stations on up to $6,000 per year in purchases (then 1% back)
- $95 annual fee
- 0% intro APR for 14 months then a 13.99% to 23.99% variable APR
Bank of America Cash Rewards Credit Card
- 3% cash back on gas purchases
- $0 annual fee
- 0% intro APR for 12 billing cycles then a 13.99% to 23.99% variable APR
As you can see, most top gas credit cards offer at least 3% cash back on gas purchases. Some cards like the Costco Anywhere Visa and Amex Blue Cash Preferred offer up to 6% rewards for gas. Just be mindful of caps on gas rewards earnings and note which gas stations or purchases are eligible.
Other Benefits of Gas Credit Cards
In addition to rewards on gas, many gas credit cards offer great benefits for saving money in other shopping categories. Most of these cards offer at least 1% cash back on all other everyday purchases. Some feature bonus rewards for travel, groceries, streaming services, and other popular spending categories.
Look for gas cards that match your regular spending behavior outside of gas purchases. This allows you to maximize savings by earning strong rewards across all eligible everyday expenses.
Oftentimes gas credit cards come with 0% introductory interest rates on purchases and balance transfers. This can help you to pay down high-interest debt on other credit cards.
Just make sure to check gas card terms for intro APR expiration dates, interest rates tied to your credit score, balance transfer fees, foreign transaction fees, and other important details.
Tips for Maximizing Gas Credit Card Rewards
To get the most value from your gas credit card rewards, follow these tips:
- Always pay your statement balance in full each month to avoid interest charges that diminish your cashback savings
- Use your gas card at eligible gas stations to ensure rewards on fill-ups
- Enroll in rewards programs through gas stations (if applicable) to stack savings
- Use your gas card at the pump rather than paying inside for maximum security
- Set up automatic payments from your checking account so you never miss payments
- Check your monthly statements and report unauthorized charges promptly
- Use contactless payment ability (if available) for faster and more secure transactions
Is a Gas Credit Card Worth It in 2024?
With gas prices expected to remain high compared to historical averages, a gas credit card is worth considering in 2024. At the current national average of $3.66 per gallon, you’d earn over $100 back on the year from a 3% cash back gas card if you buy 700-800 gallons of gas annually. That doubles to $200+ in rewards if your gas card offers 6% cash back.
And that’s not even counting any welcome bonuses you can earn from opening a new gas credit card account. Initial bonuses often range from $100 to $300 in value.
Just remember that while gas credit cards offer great rewards potential, they typically carry higher interest rates. Make sure you pay off balances each month. Set a budget for gas each month and stick to it to avoid overspending, even with extra rewards earnings.
Why Credit Cards Are Still Worth It for Buying Gas in 2024?
With the national average gas price hovering around $3.50 per gallon in early 2023, drivers continue feeling pain at the pump. While prices have dropped from over $5 a gallon in mid-2022, they remain inflated compared to under $3 per gallon historically. This has many wondering if credit cards are still worth using to buy gas with rewards often lower than surging fuel prices. However, gas credit cards do still offer significant savings that make them a smart payment method at gas stations in 2024.
Gas Credit Card Rewards Offset Some of the Price Increase
The main benefit credit cards provide is cash back rewards or points on gas purchases. Most gas cards offer a base earn rate between 3% and 6% back per dollar spent at gas stations. Some popular options include:
- Costco Anywhere Visa: 4% cash back at gas stations
- Amex Blue Cash Preferred: 6% cash back at U.S. gas stations
- Wells Fargo Active Cash: 2% cash rewards on gas purchases
Based on $3.50 per gallon, a 3% gas rewards card would save you around $0.11 off each gallon. That 6% Amex card offers $0.21 off per gallon pumped. These per-gallon discounts then quickly multiply with frequent fill-ups month-to-month and year-to-year.
So while gas prices are inflated compared to several years ago, points and cash back earned from a credit card offset some of that increase.
Intro Bonuses and 0% APRs Provide Extra Initial Value
In addition to ongoing gas rewards earnings, many credit cards offer lucrative intro bonuses and 0% intro APR periods.
Initial sign-up bonuses often range from $100 to $300 in value if you spend a certain amount in the first 3 months. Meeting bonus spending requirements is easily achievable if you use the card for regular gas station fill-ups.
Intro 0% APRs allow you to pay down existing balances or finance new gas purchases over 12-18 months without interest. This gives you over a year of floating credit card balances interest-free while still earning gas rewards.
Just make sure to pay off any remaining promotional purchase or transfer balances before the 0% rate expires. The standard variable APR is typically around 15% to 25% after the intro period.
Credit Card Rewards Beat Cash Savings from Gas Discounts
Some argue cash or mobile payment apps offer better gas savings than credit card rewards. Apps like GetUpside provide cashback on gas purchases when you submit a photo of your receipt. Warehouse clubs like Costco and Sam’s Club offer discounted gas prices when you buy a membership.
However, while these gas discounts provide some upfront cash savings, they rarely match the ongoing high-percentage rewards of a good gas credit card. Plus, credit card rewards come automatically versus needing to upload receipts to get cash back each time you fill up.
Warehouse gas stations also often have lines during peak times. And they require you to commit to a paid membership for fuel discounts. With a quality gas rewards credit card you avoid lines, get immediate cash back at any station, and don’t need a membership.
Credit Cards Offer Better Fraud Protection and Budgeting
Beyond earnings potential, credit cards provide other key benefits compared to cash or debit when buying gas.
Credit cards offer much stronger fraud protection guarantees than debit cards or cash. If your credit card number gets skimmed at the pump or a ghost charge appears, you typically have no liability. Issuers will remove bogus charges and overnight you a new card for free.
Additionally, paying with a credit card allows you to better stick to a gas budget each month. You can track spending easier both online and in monthly statements. Set alerts and caps on charges as needed. With cash or debit, it’s much harder to follow a defined fuel budget consistently.
Maximizing Value From a Gas Credit Card
To optimize value from a gas rewards credit card:
- Pay off monthly balances in full to avoid high interest charges
- Use at gas brand stations eligible for extra rewards
- Sign up for a free gas loyalty program account for additional discounts
- Check statements regularly and dispute unauthorized transactions ASAP
Avoid foreign transaction fees when traveling and watch out for rewards earning caps. Carrying a balance month-to-month deflates the value of high gas card rewards.
Credit Cards Still Offer the Best Gas Savings in 2024
While cashback percentages may not fully offset increased fuel prices in 2023 and 2024, gas rewards credit cards still provide significant savings compared to paying with cash or standard debit cards. Just $1,000 per year in gas purchases with a 3% cash-back credit card nets you $30. Plus you can earn over $100 back annually with a 6% gas rewards card if you spend $200-$300 per month filling up.
Combine that with potentially hundreds more in value from sign-up bonuses, intro 0% APR savings, better fraud protection, and easier budgeting. This makes a dedicated gas rewards credit card still very worthwhile for paying at the pump versus cash or non-bonus earning debit in 2024.
Just focus on paying balances off each month and maximizing rewards with eligible gas station purchases. Discounts may not be as lucrative as several years ago but gas credit cards still ease pain at the pump.
The Bottom Line
From daily commutes to road trips and everything in between, gas eats up a sizable portion of any driver’s budget. With prices still inflated compared to past years, using one of the best gas rewards credit cards can help lessen the blow each time you fill up the tank. Just focus on cards with strong base earn rates on gas purchases and no foreign transaction fees. Make sure to pay balances off in full each month as well. This combination gives you the most savings at the pump from your everyday gas credit card rewards.
Faqs about Gas Credit Cards
Do gas credit cards build credit?
Yes, gas credit cards can help build your credit if used responsibly. As with any credit card, gas cards report your payment history to the major credit bureaus. Making on-time payments shows financial reliability and contributes to your credit score over time. Using a small portion of your total credit limit, say 30% or less, also indicates responsible usage. Lastly, having a good mix of credit types in your history helps build a well-rounded credit profile. So adding a gas rewards card in addition to a general spending card diversifies your mix [[1]].
Do gas stations in Mexico take credit cards?
Most gas stations in Mexico do accept major international credit cards like Visa, Mastercard, and American Express. However, some remote stations or those not affiliated with name brands like PEMEX or BP may be cash-only. When traveling in Mexico, carry some cash as backup but know that tapping your chip credit card at the pump should work at a majority of stations. Sometimes an attendant has to enable the pump for credit card use before you can pay. Know your card's foreign transaction fee policy as well to avoid surprise charges [[2]].
Will a gas station take a credit card over the phone?
No, gas stations will not directly take credit card payments over the phone ahead of time. While some businesses do allow phone orders paid by card, gas stations cannot charge your card without you physically being there to pump the gas. This policy helps prevent fraud from fuel being pumped and charged without customer consent. However, you can call ahead to verify a station takes your card. Or check if they have mobile apps allowing you to activate a pump remotely from your phone when onsite [[3]].
Can you get gas with a maxed-out credit card?
Most stations will authorize a few dollars initially even when your tank is nearly empty, so yes you can still pump gas if your credit card is maxed out. However, authorization will eventually be denied once the charge amount exceeds your available credit limit as pumping continues. This temporarily suspends pumping until the payment method is resolved. So it's best to have sufficient credit limit padding when filling up the full tank [[4]].