Credit Cards for Fuel Cost Savings
"Petrol is a very optimistic product. I've never seen it go down."
The above quote is good for gags but utterly fails to answer, how to keep up with the skyrocketing prices of petrol.
A credit card, specifically used for fuel filling purposes, is also known as a fuel card or petro card. The reason why these cards weren't able to make it to the hearts of motorists a while ago was because every time they get their card swiped at a fuel station, they had to pay 2.5% fuel surcharge over and above the actual cost of the fuel. The good thing is that the fuel surcharge is waived off on most of the credit cards that you get today.
Strange as it may sound, using a credit card for paying your fuel bills can be a smart step in saving BIG bucks. Here's how -
You are entitled to earn reward point every time you make a transaction at the Fuel Station. Fuel is something that we buy regularly so it gets easier to amass reward points, later to be redeemed in the form of cash or discounts. Moreover, every time you buy petrol/diesel, you get a cash back that can be anywhere between 1-5%. So all in all, you are spending substantially less when you pay with your card than when you pay in cash.
Further, in a credit card transaction you always get a bill with VAT that facilitates reimbursement which is really helpful if you are driving for business/official purposes.
Fuel Cards are of 2 types –
- General Cards – Give you the reward points every time you get your tank filled with fuel, irrespective of the brand. So, it doesn't matter whether you stop at HP or Indian Petroleum, you get the reward points anyway.
- Specific Cards – The issuing company enters into partnership with one particular petroleum brand. So, you get the reward points when you get your car fuelled at specific fuel stations co-branded with that card.
The natural question that arises is why then would anyone want to use the 'Specific Type'. Well, it's because compared to a 'General Type', you can get up to a fivefold cash back on every transaction on the 'Specific Type'. If the 'General Type' rewards you 1 point for every 100 rupees spent on fuel, the 'Specific Type' can reward you up to 5 points for the same.
Credit Card is the new smarter way to fuel up your car!
You may also know about:
Credit Card Apply
| Credit Cards
| Dining Credit Cards
| Travel Credit Cards