Do Gas Cards Build Credit or Are They a Waste

If you're considering a gas card to help with your fuel expenses, you might be wondering if it can also help you build credit. The answer is yes, but only if you use it responsibly.

Most gas cards report payment history to the three major credit bureaus, which can help you establish or improve your credit score. This is because payment history accounts for 35% of your credit score.

However, if you're not making payments on time, a gas card can actually hurt your credit score. Missed payments can stay on your credit report for up to seven years, making it harder to get credit in the future.

Using a gas card can be a great way to build your credit, especially if gas is a big chunk of your spending. You can charge your refuels to a credit card and pay off the balance at the end of each month to establish a positive payment history.

Some gas cards are fairly easy to get approved for, either because they are gas-only credit cards or geared to consumers with poor credit. This makes them a good option for those who are new to credit or rebuilding their credit history.

Most gas cards report to the three credit bureaus: Experian, Equifax, and TransUnion. This can help you build credit over time by showing your credit activity and payments.

You can earn rewards or discounts when you fill up with a gas card. For example, some gas cards offer cash back or points for every gallon you purchase.

Here are some key benefits of building credit with a gas card:

If you have bad credit, your gas card options are somewhat limited, but you can still find a card that fits your needs.

Consider the Discover it Secured Credit Card, which offers 2% back on the first $1,000 you spend at gas stations and at restaurants each quarter, as well as 1% back on all other purchases.

You can also look into the Credit One Bank Platinum Visa for Rebuilding Credit, which offers 1% cash back rewards on eligible gas and grocery purchases.

Ultimately, the best gas card for you will depend on your individual needs and spending habits.

Here are some key factors to consider when choosing a gas card:

By considering your options and choosing a card that aligns with your needs, you can use a gas card to build your credit and save money on gas purchases.

If you have bad credit, your gas card options are somewhat limited compared to someone with good or better credit. To find the card that best fits your needs, consider the following: the Discover it Secured Credit Card offers 2% back on the first $1,000 you spend at gas stations and at restaurants each quarter (then 1%) as well as 1% back on all other purchases.

The Credit One Bank Platinum Visa for Rebuilding Credit charges an annual fee of $75 for the first year and $99 thereafter ($8.25 per month), but it's still a useful tool for rebuilding credit if you have a poor credit score. This card is best for building credit, and it offers 1% cash back rewards on eligible gas and grocery purchases and mobile phone, internet, cable and satellite TV services (terms apply).

To choose a gas card, review your spending habits and choose a card with reward categories where you spend frequently. Many gas credit cards can earn points or gas discounts on more than just gas. For example, the Discover it Secured Credit Card earns 2% cash back at gas stations and restaurants on up to a combined $1,000 each quarter (then 1%).

Ultimately, there are a lot of great credit cards for gas on the market, so make sure to check out your options before applying. Consider cards like the Shell Gas Card, which offers 10¢ per gallon every time you fill up, and the Chevron/Texaco Techron Advantage Card, which offers 3 cents per gallon in fuel credits on every fill-up.

Here are some notable gas cards to improve your credit with:

The Sunoco Universal Fleet card is a great option for those who want to save money on fuel purchases. It offers a pay-in-full plan.

One of the benefits of this card is the ability to save up to 6¢ per gallon on fuel purchases. This can add up to significant savings over time.

Here are some key terms to consider:

The promotional period for the Sunoco Universal Fleet card offers even more savings, with up to 25¢ per gallon saved on fuel purchases.

Building credit with a gas card can be a viable option, but it's essential to weigh the benefits against the drawbacks.

Some gas cards are relatively easy to get approved for, which is a plus.

However, not all gas cards are created equal, and some may come with high fees or interest rates that can offset any benefits.

Most gas cards report to the three major credit bureaus, which can help you build credit over time.

This can be especially helpful for those with poor credit or no credit history.

Gas cards can also help you earn rewards or discounts when you fill up, which can be a nice perk.

However, these rewards may not outweigh the potential drawbacks of using a gas card.

Here are some key benefits and drawbacks to consider:

If you're considering applying for a gas card, it's essential to understand how your credit score plays a role in the approval process. You'll need a 700 credit score or higher for most gas cards, meaning at least good credit is required for approval.

If you're on the border of poor and fair credit, you might be able to qualify for cards that require fair credit, offering better terms and rewards than secured cards or cards designed for bad credit. However, these cards may not be as widely available as those for excellent credit.

You can find good credit cards that earn high rewards from gas purchases for all types of credit. For example, the Citi Strata Premier℠ Card and the Citi Custom Cash Card are good options for those with good credit.

If you have fair credit, you may qualify for gas cards from specific stations such as the Phillips 66 Credit Card or the ExxonMobil Gas Card. These can only be obtained through the respective gas stations.

A gas card can improve your credit if it reports your activity to at least one of the three major credit bureaus, and you use it responsibly. This means making on-time payments and keeping your credit utilization ratio low.

Here are some notable gas cards that report to the credit bureaus: