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Is it Smart to Get a Gas Credit Card?

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As gas prices climb higher and higher, hitting and passing the $4 in some places, people turn to gas credit cards to help defray the costs. Helped along in no small part by marketing blitzes and experts extolling branded credit cards, many choose to get station-specific cards, to their detriment. But these three station-branded cards don’t deserve their popularity, and don’t have any place helping you save money at the pump.

BP Credit Card: Because what they really needed was bad PR

The BP Credit Card used to be the best in the business: 5% back on BP gas, 2% on travel and dining and 1% elsewhere, with double rewards in the first 60 days. But as of March 1, the this rewards program is much worse, despite the accolades it’s received. Using confusing rebate wizardry, Chase decided on this rewards program:

  • 15 cents off per gallon per $100 spent at BP, up to 20 gallons 
  • 5 cents off per gallon per $100 spent elsewhere, up to 20 gallons 
  • 25 cents off per gallon per $100 spent anywhere in the first 60 days, up to 20 gallons (available only to new cardholders)

Looks great, right? But then the terms and conditions kick in. You can only get those rebates on one fill-up at a time, so if you drive a Prius, your rewards rate is is a lot lower than someone with a giant gas tank. Absolute best case scenario? You get 3% back at BP and 1% elsewhere. But they’ve rigged it so that your rewards rate will probably be a lot lower.

Gulf Credit Card: “Generous” gas rebates?

The Gulf Credit Card’s website advertises “generous” and “great” gas rebates, but despite all the superlatives, the rewards are mediocre at best. You only get 3% on Gulf gas and 1% elsewhere, with absolutely no signup bonus. A number of credit cards give you 3% on gas pumped anywhere, so you’re not limited to filling up at what may or may not offer the best price. Sure, it isn’t tricksy like the BP card, but generous? No.

Shell Credit Card: Catchy slogan, but little else

The Shell Credit Card offers a fairly simple program with the slogan “Drive for Five”: buy at least 45 gallons from Shell per month, and they’ll rebate you 5 cents per gallon, up to 100 gallons. Sounds like a pretty good deal, right? A great way to knock off a few cents. But there are two little twists. The first is that 5 cents per gallon really isn’t that great of a rewards rate: with the average gas price of $3.71, that’s less than 1.5% rewards on Shell’s own gas. We consider 3% back to be the bare minimum (see: Gulf Credit Card) – 1.5% is far too low. And second, we estimate that the average household buys about 40 gallons of gas a month. So if you’re like the average household, you’d have to spend just a bit more than usual to get the reward – which is exactly what Shell wants you to do.

So what do you do when the high gas prices come calling?

If you really want to ease the pain at the pump, try a card that gives rewards at all gas stations, and gives rewards in other areas as well. These all-purpose rewards cards tend to have fewer silly gimmicks., and they won’t lock you into one station and force you to pay $3.80 at Shell when the Chevron next door costs $3.70. And if you earn rewards on groceries while you’re at it, so much the better. Here are our picks for actually decent gas rewards cards.

Blue Cash Preferred® Card from American Express: With an incredible rate of 6% back on groceries (up to $6k/year), unlimited 3% on gas and department stores and 1% elsewhere, the Blue Cash Preferred® Card from American Express is well worth the annual fee of $95. That charge is offset and more by the card’s sign-up bonus: Apply by 1/11/2017- Earn 10% cash back on purchases at in the first 6 months, up to $200. Plus, earn $150 back after you spend $1,000 in purchases on your new card within the first 3 months. Terms Apply. Its Lower-cost partner, the Blue Cash Everyday® Card from American Express, gives 3%, 2% and 1%, respectively, if you’re looking for a card with an annual fee of $0.

Chase Freedom®: If you’re looking for a solid, no-fee, cash back card to give great rewards on gas, and you don’t want to deal with the acceptance issue you sometimes see with AmEx, the Chase Freedom® is a great bet. You recveive 5% cash back in rotating bonus categories. This year, the first and third quarter’s privileged categories include gas, so you average out to 3% rewards on gas for the year. Other bonus categories typically include restaurants, select grocery stores, and wholesale clubs, among others. Plus, it comes with a sign-up bonus: Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening.

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