How to Choose the Best Gas Credit Card

Many rewards credit cards will give a bonus on gas. The highest rewards rates generally give rewards boosts only on gas, while others will combine, say, 3% on gas with 2% on travel. Because gas is so specific, there are a lot of “gotchas” to be aware of.

• Bonus caps. Some cards will carry rewards caps, so that if you spend over a certain amount, you won’t earn bonus rewards on the excess. Limits can be as low as $167 a month with the Discover business, or $250 with the Discover Open Road, Costco American Express and BP credit card.
• Station restrictions. Branded credit cards, as usual, only give rewards when you fill up at their pump. The Gulf and BP credit cards, for instance, give a great 5% rate but only if you fill up with them. Very few gas credit cards will give a bonus for Costco gas. One exception is, of course, the American Express Costco.
• Using plastic at the station. Gas stations are quirky about accepting credit cards. Arco, for instance, says no to credit but offers really cheap gas. A number won’t accept American Express and/or Discover, but Costco only accepts AmEx.
• Other rewards. The PenFed Platinum Cashback gives an awesome 5% back on gas, with no limits or station restrictions, but doesn’t give bonuses on anything else. The AmEx Blue Cash, on the other hand, only gives 3% on gas but will give 6% on groceries and 3% on department stores.
• Interest rate. If you carry a balance, you should steer clear of rewards credit cards, as they tend to carry higher APRs. This is especially true of branded cards. If you have bad credit, the combination of a poor credit score and a rewards card means you’ll pay through the nose if you have debt month-to-month.