5 Things to Consider While Applying for a Fuel Credit Card

Most card issuers offer multiple credit cards across different categories. From travel to shopping, these cards cater to different needs of the customer. Among these, fuel credit cards specifically target individuals looking to save on fuel expenses. With the right fuel credit card, you can earn cashback, discounts, and rewards on fuel spends and make your daily commute or travel more affordable.

Fuel credit cards offer fuel surcharge waivers, as well as higher cashback and reward points on fuel spends. Generally, fuel credit cards are issued by leading providers, such as SBI Card, HDFC Bank, Axis Bank, RBL Bank, and others, in collaboration with major fuel companies, like IndianOil, HPCL, and BPCL.

Hence, selecting the right credit card for fuel expenses, tailored to your spending habits and budget, can enhance your savings. Here are five things that you should consider before applying for a fuel credit card:

Consider Partner Fuel Stations

Generally, fuel credit cards are co-branded, and you can avail reward points or cashback against fuel spends done at partner outlets. For instance, a fuel card partnered with IndianOil may only give maximum benefits when used at IndianOil outlets. However, some credit card issuers also allow you to redeem cashback or reward points at select online partners or as gift vouchers.

Hence, it is important to consider the list of partner fuel stations to choose a card based on your fuel spending habits. If you frequently fuel up at a particular brand’s outlet, a co-branded fuel card with that brand can maximize your savings.

Check the Annual Fee

Credit card issuers charge an annual/renewal fee, which is the amount you pay for the benefits that come with your card. Some credit card issuers offer annual fee waivers, and if you meet the spending milestone, your annual fee will get waived off at the time of card renewal. This feature can be helpful for regular fuel spenders, as they can get the annual fee waived off while maximizing the benefits of the card.

Hence, it’s important to weigh the annual or renewal fee against the rewards and benefits offered. Choosing a card where the benefits significantly outweigh the cost will help you make the most of your fuel savings without a hefty annual fee.

Make Use of Welcome Benefits

Most credit card issuers provide additional reward points, vouchers, or gift cards as joining or welcome bonuses. These benefits vary from issuer to issuer. Choosing a card with decent welcome benefits can help you maximize your savings by compensating for the joining fee. When choosing a fuel credit card, carefully compare the value of these welcome benefits across different cards. However, joining or welcome benefits should not be the sole factor in choosing a card, but choosing a card with such benefits can help you maximize your savings.

Check the Validity of Reward Points

Reward points generally expire within 2–3 years from the date of their credit. However, some issuers offer points with no expiry date, giving you more flexibility in redeeming them whenever you choose. While choosing a fuel credit card, review the terms and conditions related to reward points, including the accumulation rate, redemption options, and expiry policies carefully. Make sure to redeem your reward points within the given period to maximize your benefits.

Consider Fuel Surcharge Waiver

Fuel surcharge waiver is a common benefit offered on most credit cards, allowing you to save on extra fees added to fuel transactions. However, the terms and conditions vary from issuer to issuer, such as eligible transactions and the monthly limit. Fuel credit cards typically offer better savings on fuel purchases, often with higher waiver limits or fewer restrictions, making them a better option to save on fuel expenses.

Choosing the right fuel credit card is important for maximizing your savings on fuel expenses. By carefully considering the above factors, you can choose a card that aligns with your daily needs and spending habits. Remember, with the right fuel credit card, you can reduce your fuel costs significantly.

Also Read: RBL Bank launches fuel credit card with IOCL