Gas cards are credit cards that are designed specifically for use at the pump, meaning they can only be used for gasoline, and sometimes, other things at gas stations and convenience stores. There are many reasons that people choose to get gas cards. They are a convenient way to budget for your monthly gasoline bill, especially if you regularly do a lot of traveling. It is also a good way to build and repair credit. There are minimum credit and financial history requirements for a gas card, but they are usually not nearly as stringent as the standards on traditional credit cards is.
Gas cards are generally provided by gas companies such as BP. Each company will have its own specific requirements, but generally those with fair to excellent credit should have no problem getting approved for a gas card. The credit limits on these cards are usually quite small, meaning lenders are more willing to extend these small lines of credit to people who might not be approved for a traditional credit card.
There are many rewards credit cards that give cash back on purchases for things like gas, and the interest rates on gas cards can be kind of high, so if you have good to excellent credit, a cash rewards card that is eligible for points from purchased gas might be a better choice than a gas card. For those trying to rebuild or build credit, this is a great way to go. Also, if you can pay the balance in full before the grace period is up, it is also a good way to budget for gasoline. The interest rates on these cards vary widely between companies, but are most dependent on credit score.
With a great credit score, you could receive an interest rate as low as about 11%, but most are looking at around 21%. While the average credit score approved for most gas cards is in the mid-600s, there are those in the upper 500s that easily meet the approval requirements for a gas card. If you have had no negative judgments in the past year and meet income guidelines, it is easier to get approved at a lower score.
Remember that while for some, this is a great way to budget for gasoline, and a way to build or rebuild credit, that there are also a number of cash rewards credit cards that often offer better terms. There are perks to having a distinct gas card, but be sure to read all the fine print and fully understand the terms and conditions before you sign on for the card. Always look around at other options before going this route as there is a good chance that you might qualify for a better line of credit. Unless well managed, or needed to build credit, this is not the most recommended like of credit one can get.
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