Did you know that the average American drives over 13,000 miles each year? That’s a lot of money spent on fuel, isn’t it?
Fortunately, there are some lucrative ways to save money at the pump that don’t require anything outlandish. We’re here to break down the best credit card for gas based on your lifestyle and spending habits. These cards provide discounts and cash back every time you purchase fuel.
Let’s get into it!
Citi Costo Anywhere Visa Card
If you already part of the 75 million Costco members, this card may be the best option for you, as it’s often considered the best credit card for gas, travel, and Costco purchases.
It provides an impressive 4% cash back on all gas purchases up to $7,000 each year. After maxing out the $7,000, you’ll be eligible to receive 1% on all other purchases.
That’s in addition to the awesome savings you’ll get on travel, dining, and Costco-related purchases. Moreover, all of this comes with no annual fee, making it a standing contender for the best credit card for gas.
It’s important to know that you must be a Costco member (which does cost an upfront fee depending on the level of membership you purchase).
You also are capped out at $7,000 for gas each year to receive the 4% cash back. If you drive frequently, you may benefit from having another card.
Bank of America BankAmericard Card
Looking for the best credit card for gas without annual fees and a sign-up bonus? Keep reading.
It’s a natural contender for the best credit card for gas, as you’ll get an automatic 3% cash back on gas purchases and 2% cash back at grocery stores and wholesale clubs, like Costco and Sam’s Club. For any other categories, you’ll get 1% cash back.
There are no annual fees. You’ll also receive a $150 online bonus for signing up if you spend at least $500 in purchases within the first 90 days of opening the account.
Furthermore, Bank of America customers will receive a 10% bonus when rewards are deposited back into their Bank of America checkings or savings account.
Even though you can score 3% and 2% cash back, these amounts are limited to the first $2,500 in combined purchases each quarter. If you tend to spend much more than that on fuel and grocery shopping, this may not be the best card for you.
Furthermore, if you use this card for everyday purchases, you’ll only be getting 1% cash back. With other cards, you may be eligible for higher bonuses.
PenFed Platinum Rewards Visa Signature Card
It’s frequently listed as the best credit card for gas and for a good reason. With the Penfed card, you’ll score 4.3% cash back at gas stations and 2.6% cash back at grocery stores. You’ll also get 1% cash back on any other purchases.
These numbers easily surpass pretty much any other of the best credit card for gas competition. Best of all? There are no annual fees.
You have to be a member of the Pentagon Federal Credit Union to receive the card. Credit unions have specific requirements for joining.
For example, you can be a member of the military or various government branches, or you can contribute a donation to the diverse organizations this credit union supports.
Your checking account needs to have a $250 balance and direct deposit, money market savings account, or a credit product at Penfed.
Furthermore, there are no bonuses for this card.
Discover It Card
Discover has an interesting approach in its quest to provide the best credit card for gas.
Discover It offers 5% cash back categories at different places each quarter. Typically, one of those quarters includes gas stations (it was January-March in 2018). During the rest of the year, you’ll still get your standard 1% cash back.
Here’s where it gets really good. During the first year, Discover offers an unlimited dollar-for-dollar match on all the cash back you’ve earned at the end of the first year.
If you bought gas during that 5% category, you’re suddenly earning 10% back, making it easily the best credit card for gas purchases. If you bought gas during the 1% cash back quarters, you’d actually be getting 2% qualified cash back.
Furthermore, Discover doesn’t have any annual fees. The cash back doesn’t expire, and you can redeem your awards in any amount.
The only real con to the Discover It card is that they don’t usually offer a lucrative sign-up bonus. Sometimes, there is a $50 cashback statement, but you’ll need to look out for it.
Chase Freedom Card
As a card that comes without an annual fee, this is an excellent contender in offering the best credit card for gas.
Similar to the Discover It card, Chase Freedom has a 5% cash back category for gas stations each year. You’ll also earn 1% cash back on other purchases (including gas when it’s not that quarter).
You can use your collected rewards for cash back statements. Or, if you hold another Chase card, such as the Preferred or Reserve, you can transfer these points to the travel portal (and can redeem them for up to 7.5% worth of travel rewards).
Unlike the Discover It card, Chase caps out your spending at $1500 each quarter to receive the 5% cash bonus. If you spend a lot on gas throughout the year, this may not be the best credit card for gas to maximize the best rewards.
Citi Thank You Premier Card
Are you interested in a multi-tasking card that offers more than just the best credit card for gas? You may benefit from what Citi has to offer.
This card automatically earns 3x more points on travel including gas stations. It also earns 2x points on dining out and entertainment (includes movies, concerts, and music downloads), and 1x points on any other purchase.
There is no limit to the number of points you can accumulate each year. Furthermore, your points don’t expire. This card doesn’t have any foreign transaction fees either!
It’s not just an amazing card for gas- it also has one of the best sign-up bonuses on the market. You’ll receive a whopping 50,000 Thank You points after spending $4000 within the first 3 months of opening your account.
That’s worth $500 in cash back or up to $625 when redeemed for flights in the Thank You Travel Center.
The annual fee is waived for the first year (a definite perk), but it will cost $95 each year after that. You will need to determine if it’s worth that cost.
If you have bad credit, you should be focusing on rebuilding your credit rather than sign-up bonuses.
Furthermore, with such an incentivizing sign-up bonus, you’ll want to make sure you’re able to meet those minimum spending requirements of the $4000. If that’s going to be a stretch for you, it’s best to hold off on considering this card.
Chase Ink Business Cash Credit Card
Are you an owner of one of the 28 million small businesses in America? If so, you may also be on the hunt for the best credit card for gas. Chase may have you covered on this one.
This is one of the driving cards for small business owners. You’ll receive 5% cash back up to the first $25,000 spent at office supply stores and the Internet, cable, and phone services.
You’ll also earn 2% cash back at gas stations and restaurants (up to $25,000). And, you’ll receive 1% cash back (with no limits) on other purchases.
You can add employee cards at no additional cost, and this Chase card offers a multitude of benefits including:
- Fraud protection
- Purchase protection
- Travel and emergency assistance services
- Extended warranty protection
- Auto rental collision protection
Chase is also currently offering a $500 bonus cash back after spending $3000 in purchases within 3 months after opening the account. There’s also no annual fee.
With so many pros positioning the Chase Ink Business card as the best credit card for gas, it’s a challenge to identify any of the cons.
The main point to keep in mind is that you’re only getting a maximum of 2% cash back on gas (compared to other cards which may offer up to 3-5%).
If you are solely looking for a card that gives you the best benefits for gas, you will want to consider your other options.
Final Thoughts on The Best Credit Card for Gas
No matter which card you choose, it’s always incentivizing to get a little cash back with every gas purchase.
And, if you can score a sweet sign-up bonus and receive cash back on other purchases, it’s even better!
At Bonsai Finance, we’re passionate about helping people like you achieve their financial goals and improve their money management. Check out our learning center today!