Want to earn points for refuelling your vehicle? Compare and apply for a petrol rewards credit card.
Petrol is a necessary weekly expense, and one that you could be earning points on. A petrol rewards credit card is designed to help you save on petrol costs and earn you reward points. To help you decide if a petrol rewards credit card will work for you, here we look at how they work and weigh up the pros and cons.
How do petrol credit cards work?
A petrol credit card works similarly to a conventional credit card, allowing cardholders to earn rewards when they purchase petrol on plastic.
There are two card options to consider:
- Direct earn petrol cards. Direct earn cards allow cardholders to earn cashback and discounts directly from purchasing fuel. They are not linked with any other existing rewards program but are connected to specific fuel retailers.
- Indirect earn petrol cards. These cards reward cardholders for spending on a variety of eligible purchases. Points can then be redeemed for petrol discounts and vouchers. The reward programs for these types of cards also allow cardholders to redeem points for a range of other rewards.
A fuel credit card can offer you rewards through your weekly fuel expenses These cards may offer a savings solution for customers who are continually on the road and frequently visit the fuel pump. However, whether they’re worthwhile will depend on how often you use your credit card for fuel and the rewards you could earn. Compare your options to find the right one for you.
What are the pros and cons of a fuel rewards card?
- Rewards. Any opportunity to receive rewards for necessary costs is a plus. The reward is also instant, with the savings added to your account immediately after your transaction has been approved.
- Additional cardholders earn rewards. You can often add a cardholder to your account, doubling the amount of points you could earn.
- Extra benefits. Credit cards often come with additional features such as a frequent flyer rewards program, complimentary insurance or interest-free days that could provide you with other benefits.
- High fees. Generally, there is an annual membership fee when you sign up for a fuel rewards credit card. Make sure that the value of the rewards exceeds the cost of the card.
- High interest. Typically, rewards cards expect you to pay your outstanding balance at the end of each month. If this is not possible for you, you could have to pay high interest rate charges on your credit card balance.
- Restrictions. Most petrol credit card providers are partnered with a particular service station. For example, if you have a HSBC rewards credit card, you’ll only be able to earn points at participating Caltex stations. Make sure the card is partnered with the petrol station you usually go to each week.
- Reward card competition. With such a wide range of rewards cards available, the fuel rewards card may not offer as much value compared with the competition. Consider how much you spend on fuel and where you want to see your rewards go.