Do you have bad credit but still looking for a gas credit card? There are a number of benefits that come with these cards, but you might not think you can get one. Fortunately, there are options available for those who are looking for gas cards for bad credit. Though these options have some considerations, like higher interest rates, they can still be a good choice for people who have a low credit score. Here is some information about them:
What are Gas Cards for Bad Credit?
A gas credit card is a card that people use when they get gas. For example, when you use these cards at the pump, you usually get cash back. Though it might not make sense for the casual user, if you drive a lot, using these cards could make a lot of sense.
There are two main types of gas credit cards. The first is a traditional credit card, which is offered by major credit card companies and banks. This, for instance, might come from Capital One, but the rewards are all gasoline related. The other type of gas credit card comes from the actual gas companies including Exxon, Shell, and BP. This second type of card is usually easier for people with bad credit to get, but there are limitations. For instance, you can only use these cards at particular gas stations. So, if you have a BP card, you can’t use that card at Shell. There are also typically higher interest rates associated with these cards.
How to Choose a Gas Credit Card If You Have Bad Credit
Though gas cards for bad credit are available, there are some things that you have to watch for. The biggest thing to consider is the annual percentage rate, known as the APR. You also have to consider any annual fee.
Here’s a scenario: imagine that you get a gas credit card for bad credit that comes with a 1% cash back reward. This probably sounds great, right? However, the card also has a $99 annual fee, plus a 23.9% APR. To get enough cash back to cover that annual fee, you would have to spend $10,000 in gas during the year. That’s about $190 a week. In addition to that, you couldn’t carry a balance on the card from month to month because you are going to get his with that APR.
Why it Makes Sense to Get a Gas Credit Card for Bad Credit
Regardless of the fees associated with bad credit gas cards, it can still be worth it to get these cards. Why? Because they can greatly improve your credit score. However, to do this, you have to pay the card on time every month and keep a low balance on the card. Now, if you keep a high balance, these cards might end up costing you a lot more than you are spending, so you have to make the decision for yourself.
If you are hesitant to get a gas card, but still could use some extra cash, we offer personal loans for people with bad credit. These online loans are available as quickly as the next business day, and you can borrow enough to keep you on the road.
Identifying the Best Gas Credit Cards For You
As already hinted at above, not all gas credit cards are created equal. And gas cards that are great for one person might not be ideal for someone else.
So how do you sift through the many options and figure out which one is for you? Here are some considerations to take into account:
- How much cash back do you get for gas purchases? 1%, 2%, or 3%?
- Do you get any cash back for groceries (gas and grocery cards are common combos) or for anything else?
- Is there an annual fee and, if so, how high is it?
- Is the the card unsecured or do you need to put down a deposit?
- How high is the APR?
- How big of a credit line can you get?
- Is the card good at any gas station or only at particular brands?
- How fast can you get your APR lowered and your credit line increased by paying on time? (Ask your card company about this.)
As you can see, there are a number of important factors to look at when evaluating gas credit cards. It can obviously be difficult to compare all these factors across a wide range of gas cards. So what do you do?
How Bonsai Finance Helps You Find the Best Gas Cards
At Bonsai Finance, we can help you decide if a gas cards are the right kind of card for you. And if so, we can use our powerful search engines and our in depth knowledge of numerous gas card brands and types to help you find your perfect fit.
We know how to find you a gas card company that will accept your request regardless of your past credit history. We know which companies run a credit check and which don’t. And as rejected requests and multiple credit checks being run on you in a short space of time can be detrimental to your credit score, it pays to have access to this kind of information upfront.
At Bonsai Finance, we also help you find gas cards that require only basic (and relevant) personal and financial information on an online request form. We connect you with companies that have a streamlined request process that literally takes only minutes. And approval is normally near instantaneous.
It can be bewildering and even dangerous to try to evaluate gas card providers on your own and without access to the most pertinent information. We have deep experience in this market area, and we know how to steer you clear of disreputable card companies and help you find a gas card that meets all of your most important criteria.
Bonsai Finance is here to make it faster, easier, and safer to locate, request, and get approved for the best possible gasoline credit card that meets your needs!
Additional Factors to Consider in Choosing a Gas Card
We mentioned already above the most important factors to consider when comparing gas cards online through Bonsai Finance’s card-matching search engine. But here are a few other consideration to also keep on your “radar screen:”
1. No credit check.
You may not need good credit or any significant credit history at all to get approved for a gas card offer, but you also want to find a card company that won’t even run a credit check on you.
Why? Because someone with already poor credit can see their credit score hurt yet more when a credit check is run. This is particularly true if you have multiple credit checks run by multiple companies over a short period of time.
2. Anti-fraud protection.
Credit card fraud is a real danger, and not all credit card issuers handle it alike. If your credit card information is presented fraudulently or if your card is stolen and presented without warranty at a gas station, you want total protection.
Check the card issuer’s policy on fraud claims and reimbursements, and examine how they define making a “reasonable effort” to prevent fraud.
3. Read the fine print.
You can’t afford to spend all day reading the fine print at site after site. But you can on just the top few prospects for your new gas card, after a Bonsai Finance search has alerted you to your best potential deals.
Find out the details of the cash back rewards program. This can impact how and where products are purchased. And see if there’s an initial bonus after you spend a certain amount with the gas card. Don’t miss out on any sign-up bonuses!
Also check out details at the card issuer’s site, including for example, any advertiser disclosure or cookies policy, or if online access to repay your card balance is free, or if you have 24/7 customer service to report a problem or a number to call should your card be lost or stolen.
Using Your New Gas Card
Gas cards for people with bad credit or no credit are potentially a blessing that could save you money and help rebuild a damaged credit score. But you have to use them responsibly and “smartly” to make that happen.
First of all, you need to use your card consistently for all gas station fill-ups and, if applicable, for grocery purchases. Be sure of which stores and stations qualify, and shop where you’ll get your maximum savings.
Of course, you also want to check that the prices are significantly higher at the stations and grocery stores that qualify, or you might not save as compared to where you’re buying gas and groceries now. It will take a little math, but you can figure it out and find out which gas card is truly a great deal.
Second, always pay your card off in full (if at all possible) before the end of the period to avoid paying interest. And never get hit with a late fee. To earn money with the card, you have to avoid interest and fees while tapping into the cashback rewards consistently.
Third, by making all payments on time, you will gradually boost your damaged credit score. The more you use the card and pay it off, the better chance your score will rise faster. If you have a security deposit on your gas card, making all your payments on time can eventually get you your deposit money credited back (with many card companies) and get your credit limit raised as well.
Finally, always keep your gas card with you even when you don’t plan to use it. If you get stuck in an emergency situation, where you have no other way to pay for gas and/or groceries, your gasoline card can come to the rescue!