Difference between revisions of "Best credit cards for gas spending"
| Line 17: | Line 17: | ||
<ul class="bulletlist"> | <ul class="bulletlist"> | ||
| − | <li>'''If you are using one of the following cards, it probably doesn’t make sense to get an extra card | + | <li>'''If you are using one of the following cards, it probably doesn’t make sense to get an extra card just for gas purchases'''. Many of the cards that have valuable benefits or that earn good bonus rewards in other categories, also offer good bonus rewards on gas. You can probably earn competitive reward rates on gas with one of the cards you already have. This makes it less worthwhile to get another card, if it is only to earn a slightly higher reward rate on a couple of thousand dollars worth of gas purchases each year.</li> |
<ul class="checklist"> | <ul class="checklist"> | ||
<li>{{Card|BOACash|only}} (for groceries and warehouse stores): 3-5.25%</li> | <li>{{Card|BOACash|only}} (for groceries and warehouse stores): 3-5.25%</li> | ||
| − | <li>{{Card|SamsClub|only}} / {{Card|Costco|only}} (for warehouse stores | + | <li>{{Card|SamsClub|only}} / {{Card|Costco|only}} (for warehouse stores and possible restaurants and travel): 5%</li> |
<li>{{Card|EveryDayPreferred|only}} (for groceries and possibly general-purpose spending): 4.5%</li> | <li>{{Card|EveryDayPreferred|only}} (for groceries and possibly general-purpose spending): 4.5%</li> | ||
Revision as of 22:50, 6 May 2020
Make sure to read the tips and general advice in our Optimize Rewards by Using Different Cards for Different Purchases guide.
Jump to:
Card suggestions
- If you are using one of the following cards, it probably doesn’t make sense to get an extra card just for gas purchases. Many of the cards that have valuable benefits or that earn good bonus rewards in other categories, also offer good bonus rewards on gas. You can probably earn competitive reward rates on gas with one of the cards you already have. This makes it less worthwhile to get another card, if it is only to earn a slightly higher reward rate on a couple of thousand dollars worth of gas purchases each year.
- BOA Cash Rewards Card (for groceries and warehouse stores): 3-5.25%
- Sam's Club Credit Card / Costco Credit Card (for warehouse stores and possible restaurants and travel): 5%
- Everyday Preferred Card (for groceries and possibly general-purpose spending): 4.5%
- Altitude Reserve Card (for groceries, travel, general-purpose spending, and some premium benefits): 4.5%, with mobile wallet payment
- Wells Fargo Propel and Wells Fargo Visa Signature Card combo (for restaurants, travel, and streaming services): 4.5%
- Citi Premier Card (for travel, entertainment and possibly restaurants): 4.2%
- Ink Cash Card (For office supplies, telecom services, and possibly restaurants): 3.4%
- Amex Business Gold Rewards Card (for various business-oriented reward categories): 4-6%. But, only if you are using the card for only one of the other categories. You can only collect bonus points for two categories per month.
- In addition, a number of otherwise interesting cards provide 3% bonus rewards on gas. Unless you spend a lot of money on gas, even these cards are probably good enough. With $2,000 in annual purchases, the difference between 3% and 5% reward rates is $40.
- If you spend a lot of money on gas, you can optimize your rewards by getting the Ducks Unlimited Credit Card (or the Abound Platinum Card or Sam's Club Credit Card). These cards earn 5% back on gas, and have no annual fee. The Ducks Unlimited card also earns 5% back at sporting good stores, making it the best of the 5% options.
For every $1,000 you spend on gas each year, you’ll earn an extra $5 in rewards compared to a card that would have earned you 4.5%, an extra $10 compared to a card that would have earned you 4%, or an extra $20 compared to a card that would have earned you 3%.
The only cards that earn more are the BOA Cash Rewards,but only if you have over $100,000 at Bank of America / Merrill Lynch, the Amex Everyday Preferred, if you highly-value Membership Rewards points, or the Amex Business Gold, if you are willing to earn Membership Rewards points, can justify the $295 annual fee with one of the other bonus categories, and won't be naturally taking advantage of one of the other bonus categories.
Quick comparison
The point values used in the table below are estimates based on a typical traveler. They may need to be adjusted for your individual preferences and travel patterns. For example, if you highly value premium cabin award tickets and are willing and able to build up large point balances, Ultimate Rewards, Membership Rewards, and ThankYou points are much more valuable and you should earn as many of those types of points as you can. If you have trouble finding good frequent flyer redemptions, you might want to focus on cards that earn points that can be used more like cash. Deciding What Type of Points to Earn
The annual costs in the table below reflect the annual fee minus any travel credits. For travel credits that are harder to redeem, we value the credit at 50% of the maximum credit amount. We value the Amex Airlines Incidental Credit at only 25% of the maximum credit amount. If you are willing to do the work or are otherwise able to get full value from these credits, the effective annual fee can be considerably lower.
Some cards waive the annual fee for the first year. But the table focuses on what you would pay in the longer term.
| Card | Value | Earns | Annual Cost |
|---|---|---|---|
| Amex Business Gold Rewards Card (If it is one of your top 2 categories) |
6% | 4x MR | $295 |
| BOA Cash Rewards Card | 3-5.25%* | 3-5.25 | $0 |
| Abound Platinum Card | 5% | 5% | $0 |
| Sam's Club Credit Card | 5% | 5% | $0 |
| Ducks Unlimited Credit Card | 5% | 5% | $0 |
| Wells Fargo Propel Card (with the Wells Fargo Visa Signature) |
4.5% | 3x | $0 |
| Everyday Preferred Card (with 30+ transactions per month) |
4.5% | 3x MR | $95 |
| Altitude Reserve Card (with mobile wallet purchases only†) |
4.5% | 3x | $75 |
| Citi Premier Card | 4.5% | 3x TY | $95 |
| Penfed Platinum Rewards Card | 4.2% | 5x | $0 |
| Costco Credit Card | 4% | 4% | $0 |
| Ink Cash Card | 3.4% | 2x UR | $0 |
| Everyday Preferred Card (without the transaction bonus) |
3% | 2x MR | $95 |
| VantageWest Connect Credit Card | 3% | 3x | $0 |
| AARP Credit Card | 3% | 3% | $0 |
| Flexperks Travel Card | 3% | 2x | $49 |
| Blue Cash Preferred Card | 3% | 3% | $95 |
| Hilton Surpass Credit Card | 2.7% | 6x | $75 |
* Cardholders with more than $20,000 in combined balances at BOA / Merrill Lynch earn bonus rewards, maxing out at 3.5 cents on grocery store purchases.
† If your normal grocery store(s) accept mobile wallets, you’re set. If you have SamsungPay, you should be able to use it any store that has a swipe machine.
Supercharge your rewards with a fuel rewards program
There are several ways to earn even more rewards on your gasoline purchases.
- Take advantage of grocery store reward programs, when you buy gas at a grocery store gas station, or at a gas station operated by one of their partners. Most grocery store reward programs offer fuel discounts, when you purchase gas at their store-branded gas stations. They also provide similar benefits when you get gas at a gas station brand that they partner with. For example, you can earn fuel points with every purchase at the Kroger family of supermarkets, and then use them for a 10 cent per gallon discount at Shell.
- When you purchase gift cards at the grocery store, you’ll often earn additional “fuel rewards”, you can use for gas discounts.
- The “Fuel Rewards” program is a great option if you often fill-up at Shell stations. You’ll get an extra 5 cents off per gallon. If you link a credit card to your Fuel Rewards account, and then use that card to make purchases at participating restaurants. grocery stores, or other retailers, you’ll earn additional discounts.
- Other gas stations have their own reward programs. For example, you can earn an extra 1 cent per dollar in rewards by using the Plenti program at Exxon and Mobile, or get 10 cents off per gallon for every $100 spent at BP. Check what is available at the gas stations near you.
