With winter fully upon us, families everywhere are gearing up for winter vacations and weekends. Road trips to the beaches, or across the
country to a national park - it's no wonder that September, October, and November
see some of the highest road travel during the year. Gas prices this October are about 15 cents higher per gallon than they were a year ago, and
at $3.68 per gallon, that can add up to an expensive road trip. If
you're looking for the best gas credit card to earn rewards or cash
back, here are our top picks.
- The Best Gas Credit Cards
- Best Gas Station Credit Cards
- Other Gas Rewards Credit Cards
- Guide to Picking the Best Gas Rewards Card for You
The Best Gas Credit Cards
Here are our top seven best gas credit cards. They range from great
all-around credit cards with 3% gas rewards to credit union cards with
5% gas bonuses and a few membership requirements. All of these credit
cards earn gas rewards at standalone gas stations regardless of the
brand.
Bank of America BankAmericard Cash Rewards
We pick the
BankAmericard Cash Rewards as
the best credit card with gas rewards for the average consumer who
spends moderately and is looking for a good general credit card with gas
bonuses. The BankAmericard gives 3% cash back on gas spending and 2%
back for supermarkets (decent bonus rewards for these categories), has
no special eligibility requirements, and has no annual fee. However,
bonus rewards are capped at $2,500 of gas, grocery and wholesale club
spending each quarter, which is why we recommend it for moderate
spenders. Beyond this, these two categories only earn 1%, which is below
what you could get with a great no-fee cash back card. Another benefit
is that Bank of America customers get a 10% increase when rewards are
deposited into their checkings or savings. This relationship bonus may
be available to many drivers since Bank of America is the second largest
bank by deposits in the nation.
Highlights
- 3% gas rewards, 2% at grocery stores and
wholesale clubs for the first $2,500 in combined spending each quarter;
1% thereafter and 1% for general spending
- $100 cash rewards bonus after spending $500 in the first 90 days,
10% relationship bonus for Bank of America checkings or savings accounts
- No annual fee
Blue Cash Preferred® Card from American Express
We also like the
Blue Cash Preferred® Card from American Express as
a convenient general credit card with special gas rewards for the
average consumer with higher expenses. Based on our calculations, you'd
have to spend more than $8,500 on gas annually on the Blue Cash
Preferred® Card from American Express to earn a higher rewards return
than just by maximizing the BankAmericard for gas rewards. If your gas
spending is less than $708 a month, you're better off with the
BankAmericard. That's because the Amex works best for commuters who
drive enough to make the $95 annual fee worthwhile at a 3% cash back
rate on gas. With the Blue Cash Preferred® Card from American Express,
you also get a generous 6% cash back on the first $6k of supermarket
spending, with everything else earning 1%, that helps to increase your
overall rewards level.
Highlights
- 3% unlimited gas rewards, 6% cash back for the first $6,000 in supermarket spending in the year; 1% thereafter and 1% for general spending
- $150 cash back after spending $1,000 in the first 3 months
- $95 annual fee
PenFed Ultimate Cash Rewards Visa Card Plus
The Ultimate Cash Rewards Platinum Visa Plus card from PenFed is THE
BEST gas credit card for maximizing gas rewards if you don't mind
fulfilling two extra eligibility requirements. They're relatively easy
to be eligible for, and worth it for a card that gets you an unlimited
and excellent 5% rebate at gas stations (two percentage points above
some of our best gas credit cards), and 3% cash back at supermarkets for
no annual fee. To be eligible to apply, you'll have to be a member of
the Pentagon Federal Credit Union - currently, a donation of less than
$20 to the National Military Family Association or the Voices for
America's Troops, volunteer work for the Red Cross, and a number of
military affiliations or government work are accepted. You'll also have
to maintain an active account or product with the the credit union to
avoid an annual fee and to keep the superior rewards rate - otherwise
you slip down to the Standard Visa card with 3% gas rewards only card
for $25 a year (waived the first year).
Highlights
- 5% unlimited gas rewards, 3% unlimited supermarket rewards, 1% cash back on general spending
- Requirements for eligibility, and keep a checking account with at
least $250 balance and direct deposit, a money market savings account,
or credit product at PenFed
- No bonus, no annual fee if you maintain Plus standards
Fort Knox Visa Platinum Card
Another great credit card for gas rewards is the Fort Knox Visa
Platinum Card. It gets the same 5% cash rebate on gas as the PenFed
Ultimate Cash Rewards does, and 1% for supermarket and other spending,
but has lower requirements for eligibility. You'll need to be affiliated
with the military, be employed or reside in select Kentucky counties
(Boyle, Breckenridge, Grayson, Hart, LaRue, Meade, Nelson, &
Taylor), or obtain a $15 membership with the American Consumer Council, a
consumer advocacy organization. A separate $15 secures your membership
with a one-time fee and share to the credit union. Fort Knox might be
difficult to break into, but this gas credit card should be easy to be
eligible for. Your one-time fees can cost you up to $30, but you won't
need to maintain additional balances or products with the credit union
to apply for the Fort Knox Visa Platinum card.
Highlights
- 5% unlimited gas rewards, 3% unlimited supermarket rewards, 1% cash back on general spending
- Requirements for eligibility, $15 one-time fee and share deposit, no balances required
- No bonus, no annual fee
Sallie Mae Rewards Credit Card
Another credit card that gets one of the highest rewards rate on gas
is the Sallie Mae Rewards MasterCard, to the tune of 5% on the first
$250 of gas charged each month. It's a great option for moderate
drivers, and particularly for students and avid book readers, as it is
one of the few credit cards that rewards book purchases (up to
$750/month). Groceries also get 5%, capped at $250 per month, with all
other net purchases garnering 1%. You don't need to have a Sallie Mae
loan to get these bonuses, but points can only be redeemed as statement
credits towards the account statement, Sallie Mae student loan, or
Upromise account.
Currently, you cannot apply for the Sallie Mae Credit Card, though no
word has been released on its fate. It is uncertain whether the card
will be discontinued in 2016. For the time being, however, current
cardholders can continue to enjoy the gas savings it provides.
Highlights
- 5% gas rewards on the first $250/month, 5% on first $250 at grocery stores each month, 5% on first $750 at book retailers each month, 1% all other net purchases
- No Sallie Mae loan required
- 2,500 bonus points ($25 value) with first purchase in 90 days, no annual fee
Chase Freedom®
The
Chase Freedom®
is best for people who drive more seasonally, and don't mind keeping
track of rotating bonus categories to maximize the value on their card.
Freedom cardholders earn 5% cash back on up to $1,500 in combined
purchases in bonus categroeies each quarter you activate. This sometimes
will include gas station purchases. However, as we point out, these
extra rewards are capped for spending up $1,500 in combined category
spending. You will have to monitor spending if you're looking to
maximize your rewards. Charging a constant amount on fuel within the cap
equates to an average gas rewards of 3% a year, which is on par with
other great gas credit cards we're reviewing. There are other timely
bonuses available throughout the year on restaurants, Amazon.com, and
home improvement stores that can increase the overall value. To get the
best value out of the Chase Freedom®, use it for the bonus categories
and supplement with a no-annual-fee 1.5% cash back credit card like the
Capital One® Quicksilver® Cash Rewards Credit Card.
Highlights
- Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate
- You can get a $150 bonus after spending $500 on purchases in your first 3 months from account opening
- $0 annual fee
Wells Fargo Propel 365 American Express Card
We recommend the
Wells Fargo Propel 365
as a great gas credit card for the bank's PMA accountholders who
generally have higher levels of spending. That's because there's a $45
annual fee (waived Y1), a nice 25 - 50% base point relationship bonus,
and an unlimited 3% gas rewards rate to consider. PMA package holders
get a 25 - 50% bump to their base points (that's just the total dollar
of credit card spending), which can greatly enhance the rewards you
earn. The 10% bump for a Wells Fargo checkings or savings account is
better than nothing, but it might not make sense when weighed against
the $45 annual fee and the other credit cards in our review.
Highlights
- 3% unlimited gas rewards, 2% unlimited restaurant and bar rewards, 1% cash back on general spending
- 20,000 points after spending $3,000 in the first 3 months (worth ~$200)
- $45 annual fee, waived the first year
Costco Anywhere Visa® Card
If you live near or shop at Costco, the
Costco Anywhere Visa® Card
may be the best credit card for you, since it combines a great gas
rewards rate of 4% with some of the lowest gasoline costs per gallon.
The cost of gas per gallon at Costco is generally credited by customers
to some of the lowest in their neighborhoods – this is additional
savings from Costco’s economies of scale that the other gas rewards
credit cards don’t have. On top of that, you’d earn up to the same 4%
cash back in refueling at any other gas station, so long as it’s not
another wholesaler. Beyond that, you can also earn 3% cash back at
restaurants and travel, as well as 2% back on purchases at Costco.
Highlights
- 4% gas rewards on the first $7,000 per year, 3% restaurant and travel rewards, 2% cash back at Costco and 1% on general spending
- No bonus, cash back redeemable in form of coupon voucher for Costco
- No annual fee with Costco membership
Best Gas Station Credit Cards
We believe there's greater value to having one of the above 5% gas
rewards credit union card or 3% general credit cards with gas rewards
for their higher overall rewards rate and ability to earn rewards at any
gas station. However, if you are loyal to one brand of gas station,
then there are three particular gas station credit cards that stand head
and shoulders above the rest. You'll generally earn a 3% rebate on fuel
purchased only at the company's own stations, and 1% on most other
charges; refilling your car at other gas stations gets nothing.
BP Visa® Credit Card
The BP Visa® Credit Card, from Synchrony Bank, is an excellent card
to keep in your wallet for more than just gas. With the card, you will
earn a 5% rewards rate anytime you shop at BP, and 3% on grocery,
dining, and travel purchases. When using the card at all other places
that accept Visa (excluding non-BP gas stations), you will get a
standard rate of 1%. The card also comes with a decent welcome bonus.
For the first 90 days, the 5% rate applies to all purchases (excluding
non-BP gas stations). The major downside of the BP Visa® Credit Card is
all the fine-print. It has high APR (26.99%), high late fees, and the
points expire after 12 months. Be sure to read all the card agreements
carefully when applying for it.
Highlights
- Welcome bonus: for the first 90 days, every $100 charged accrues a $0.25 per gallon rebate
- $0.25/gal rebate for every $100 of BP charges, $0.15/gal for every $100 you spend for eligible groceries, dining, and travel $0.05/gal reduction for every $100 of other credit card spending (0% at other gas stations)
- No annual fee
Hess Visa Platinum Credit Card
Do you spend less than $400 a month on gas and goods at Hess
stations? Then the Hess Visa Platinum is no-fee credit card can make a
great niche addition to your wallet - great just for paying at Hess
stations. Here’s why: you get an automatic 10% credit back on your
statement in the first two months on up to $400 of gas, food, and
merchandise bought at Hess stations. Thereafter, it drops down to 3%
credit back on Hess refueling (1% for other spending). As with other gas
credit cards, you earn nothing at other branded gas stations. Again,
the 1% on general spending is lower than what'd you get on a decent
no-fee cash rewards card like the Quicksilver.
Highlights
- Welcome bonus: first two months, 10% credit on up to $400 of spending at Hess gas stations
- Afterwards, 3% credit back on Hess purchases, 1% on all other (0% at other gas stations)
- No signing bonus, no annual fee
ExxonMobil Preferred Smart Card
The ExxonMobil Preferred Smart Card can be a very worthwhile retail
card for Exxon customers who are frequent travelers. ExxonMobil's gas
rewards rate is only slightly above average, but the real value of this
card is in the cash back on travel, and stacking opportunity for rewards
beyond gas. The ExxonMobil card’s $0.06 credit per gallon (available
when you use between 45 - 100 gallons in the month) is a 1.6% rebate
rate on the average cost of gas of $3.684 (as of May 2014) – just
marginally above one of our best cash back cards. Through access to the
ExxonMobil Travel Agency, you can get up to 10% cash back on lodging and
cruises and 5% cash back on domestic flights and car rentals. On top of
these savings, you can pay for it with a high rewards travel credit
card, such as the Barclaycard Arrival, for a further 2.2% rewards rate.
It has a $29 annual fee, but the savings from even a single trip can
recoup your costs. Note that this is a retail card that can only be used
for ExxonMobil.
Highlights
- $0.06 credit per gallon between 45 - 100 gallons a month
- ExxonMobil Travel Agency discounts
- $29 annual fee, retail card
Comparing Other Credit Cards for Gas
Here are other credit cards that didn't make our first round of picks
for our best gas credit cards because of a combination of rewards caps,
lower than average gas rewards rates, and less general applicability to
most of our readers.
Chevron and Texaco Visa Credit Card: The Chevron and
Texaco Visa can be an okay gas station credit card if you meet two
requirements: you spend less than $920 each month at Chevron and Texaco
pumps, and use the card for general spending of at least $300. That's
because fuel credit of 10 cents per gallon gets triggered when you spend
more than $300 a month on non-gas, and there is a maximum of $300 in
fuel credits each year. If you spend the bare minimum of $300, and then
pay for $300 in gas, you'd be earning a 1.4% rewards rate (savings of
$8.14 on 81 gallons divided by $600 of total spending). While there is a
higher 20 cent rebate, you have to spend $1,000 in non-gas each month
and your fuel rewards are capped at $25 a month.
Shell Drive for Five Card: The Drive for Five card
is not a worthwhile gas station card to have due to its low rewards
potential and $0.05 rebate. Even if you only fill up your car at Shell
gas stations, you’d be better off with a simple cash back credit card.
That’s because you only earn credits at Shell stations for filling up
between 45 and 100 gallons a month for personal use, up to $60 in
credits a year.
Sunoco Gas Card: Even with an instant $0.05 discount
per gallon at the pump, the rewards on the Sunoco card are a below
average return. Fuel prices would have to drop to $1.67 per gallon in
order for this card to be competitive with some of our best gas rewards
credit cards.
Valero Gas Consumer Card: The Valero Gas Gonsumer
Card has some of the lowest credits per gallon of fuel purchased –
drivers partial to Valero are better off with a no-fee cash back credit
card such as the Capital One® Quicksilver® Cash Rewards Credit Card.
Ranging from $0.01 off each gallon of diesel to $0.02 off each gallon of
super unleaded gasoline, these discounts are worth approximately 0.3%
to 0.5% at the national average gas rates of $3.684 (May 2014).
How to Pick the Best Gas Rewards Card for you
Getting the best gas rewards credit card for you is about maximizing
your gas rebate rate and the opportunity to earn rebates when paying for
gas. Here are a few factors to consider when deciding how to earn the
most gas rewards, and therefore, finding the best gas credit card for
you.
Picking Your Gas Rebate Rate
There are three rebate rates when it comes to gas rewards credit
cards: 10%, 5%, and 3%, and each has its own considerations. Next, these
rates are split into periods for signing promotions and ongoing rates.
Lastly, there's the higher rewards rate for gas vs. non-gas spending.
The gas rebate rate should have a rewards rate higher than 1.5%,
otherwise, you could just get 1.5% on a great cash back card like the
Capital One® Quicksilver® Cash Rewards Credit Card. 10%
is the absolute highest gas rebate, but that is an introductory rate
for two months with a low ceiling on rewards (the Hess credit card). 5%
is the highest continuous rebate that you can get on fuel purchases.
Only two credit cards offer this on a constant basis (PenFed and Fort
Knox), and they're credit union cards that do require membership. Other
gas station credit cards lead with a 5% introductory rate, but drop to a
3% long-term rewards rate after the promotion ends and can only be used
at their own stations. Lastly, you have general purpose credit cards
that offer 3% on spending at the pump, with varying levels of quarterly
caps and annual fees, but higher rewards rates for select other
categories besides gas.
Note that the rewards are based on how your gas provider is
categorized. Generally speaking, standalone gas station units are
eligible for the gas bonuses - fuel purchases at attached retailers or
in supermarkets do not count.
Consider Other Supplemental Category Bonuses
The rewards rate you earn on non-gas spending should be considered as
well, since using a gas rewards credit card for non-gas spending may
lower your overall rewards. Firstly, gas station credit cards do not let
you earn rewards at competing companies' pumps. Next, gas station
credit cards typically offer just 1% on other general spending like
groceries or clothing. A 1% rate is not worthwile compared to what you
could be earning on a no-fee simple cash back credit card such as the
Capital One® Quicksilver® Cash Rewards Credit Card.
The general purpose credit cards also offer bonuses for other
categories such as supermarket spending (subject to maxes or annual
fees). While the 3% gas rewards on general credit cards are lower than
5% cards like Fort Knox or PenFed, you may get higher rates on other
categories of spending that may balance out your overall rewards.
To get the best rewards for your gas spending, consider having a
gas-specific credit card with a high reward rate for gas, and using your
favorite all-around rewards card for other spending. Just keep in mind
that paying off balances in full each month is paramount, otherwise
whatever earnings you earn will be more than wiped out by high APRs.
Maximize Opportunity to Earn Gas Rewards
Where can you earn the most gas rewards? Do you frequent or live near
a BP, Hess, or ExxonMobil gas station, or do you just go for whatever
is closest or cheapest? These questions determine whether you should get
a gas station-specific credit card or a general credit card with gas
bonuses.
A brand-specific credit card might make sense if you frequent their
gas stations, but some of them may provide rewards rates that are lower
than what you'd get from a general cash back credit card. You should
generally aim for a card with 3% gas rebates or higher, because that's
what you'd get with a general credit card with gas rewards. Some gas
stations only offer retail cards, which are cards that can only be used
at their company's locations, and therefore restrict how much you can
earn rewards on. They'll also cap how much you can earn in gas rebates
each month or quarter, so check that the ceiling doesn't curtail your
gas rewards potential. As a general rule, you don't earn rewards at
another company's pumps. Lastly, as good as the rebates rate on gas is,
you typically only earn 1% for using the card outside of the company's
pumps.
If you just refuel wherever the cheapest cost per gallon, or the
closest station is, then get a general gas rewards credit card. These
cards don't care where you buy your fuel from, so you can maximize the
spending you earn gas cash back on. Pay attention to any ceiling on gas
bonuses, and see if it makes sense for your gas budget.
Paying with Cash vs. Credit
Some gas station proprietors differentiate prices between cash and
credit card payments, so the rebate you get from using a credit card can
be less than the savings from paying with cash. The price per gallon
for credit card payments may be higher because vendors pass along the
credit card interchange fee (what payment networks such as Visa and
MasterCard charge vendors) to the driver. If the credit card surcharge
is more than your rewards rate, then consider paying cash to save.
Compare Credit Cards For Gas Spending Based On The Way You Shop
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