What is a Fuel Credit Card and who should get it?
In the tightening economy where everyone looks to cut down their expenses as much as they can, without losing out on their comfort, banking sectors have extended their scope to the fuel (primarily petrol or diesel) market. The outcome of this venture is a Fuel Credit Card. This card enables the user to lower his expenses on both refilling his vehicles and/or by just purchasing the fuel. Anybody with a regular reliance on their vehicle should opt for this.
How does it work?
Different banks tie-up with respective oil-companies to avail their Fuel Credit Cards. The bank you are subscribed to is very likely to have at least one such tie-up with a given oil-company. If you seek the fuel outlet connected with the bank which issued your fuel credit card, you are eligible for the benefits the card promises.
A fuel card can be both convenient and excellent option to save on your fuel. Source: Paisabazaar
Use the card for fuel purchase and pay off your dues within the stipulated time given by your bank to avoid the interest charges which are otherwise relatively low. Also, for the fuel credit card, the bank may or may not charge an annual fee for the maintenance of its services.
Why it is best to get a Fuel Credit Card?
Fuels aren’t getting any cheaper, at least not shortly soon. So why let it burden your pocket when you can easily put some of your load off to this facility?
The first advantage that a fuel credit card offers is that it waives off the fuel surcharge. Every time you buy fuel you also have to pay the fuel surcharge fee which is an additional interest on your purchase. With the fuel credit card at hand, the fuel surcharge price is waived off or discounted.
Additional Benefits
The card is not limited to fuel surcharge. It provides multiple additional benefits that may vary with different banks of which the card is but generally includes:
- Reward Points – These points can be used either to be redeemed against fuel purchases or to extract other benefits from various merchandise brands.
- Cashback benefits: ranging from dinner to movies.
- Lifestyle benefits
- Shopping discounts
How to apply for it?
Approach your nearest branch of the bank or apply online to avail of the Fuel credit card. The applicant will be required to fill up an application form and provide documents as demanded by the bank. For almost all banks, credit score plays an important role in determining if you are eligible for the credit card or not.
How to opt for the best Fuel Credit Card?
After having understood what fuel credit cards are along with their usefulness, the last thing that remains to be resolved is which card to pick among the wide range of options with varying benefits. Certain factors need to be put into consideration without which the optimum benefits may not be realized.
Monthly estimate of your fuel spending: One should get around an approximate sum they monthly spend on fuel expenses.
- Payment approach: To avoid interest charges on your card, it is necessary that you are able to pay your dues in time. In addition, you should seek out the interest charges which if incurred should not exceed your capacity to pay or take the form of an unbearable debt.
- Reward Points: It is preferable to go for a credit card that redeems immediate reward points so that you can use them in your next transaction as early as possible.
- Interests and Rewards: It is very important to avoid a credit card which though offers plenty of rewards but also is very high in its interest charges or annual fee. Such a card may negate your reward benefits with its service charges.
After learning the perks that a fuel credit card brings, it is clear that any car owner who uses his car regularly should opt for this. However, before doing this, one must compare the benefits of all such cards offered by different banks in order to maximize profit on fuel purchases.
