ith the covid pandemic-led curbs easing throughout the nation, many staff have returned to places of work. This has elevated the usage of private automobiles to commute, and introduced with it recurring bills on gas. Fuel bank cards are a handy choice obtainable to satisfy this expense. But can these playing cards provide help to beat the rising costs of gas?
Most bank card issuers present totally different classes of playing cards providing greater rewards on particular transactions primarily based on the goal client group’s spending habits. Fuel bank cards are aimed toward these incurring large bills on gas.
Sahil Arora, senior director, Paisabazaar.com, mentioned, “Fuel bank cards provide gas surcharge waiver, and better cashbacks and reward factors on gas spends. However, as gas playing cards are often co-branded bank cards, the upper cashbacks and reward factors are credited solely on incurring gas spends at choose retailers of companion gas manufacturers.”
Hence, you could bear in mind just a few components earlier than making use of for a gas bank card.
Spending preferences: The gathered reward factors on gas playing cards can often be redeemed towards gas spends made at companion retailers. But some card issuers additionally enable gathered reward factors to be redeemed at choose on-line companions, or as present vouchers.
Arora mentioned, “You should issue within the checklist of companion oil pumps the place you may earn and redeem your gas reward factors earlier than zeroing in on any gas card. Opt for one whose reward factors programme and reward factors redemption choice match your spending habits essentially the most.”
Adhil Shetty, chief govt officer, BankBazaar.com added, “Since a co-branded card is unlikely to supply loyalty rewards on purchases made at non-partnering refill stations, customers should make sure the partnering outlet is the one the place they refill essentially the most.”
Annual/renewal and becoming a member of price: Opt for the bank card whose welcome advantages, renewal advantages, reductions, cashbacks, reward factors, vouchers and different card advantages exceed its becoming a member of/annual charges by a large margin.
Shetty mentioned, “At occasions, these bank card variants additionally provide predefined spending targets that could possibly be met to waive membership fees. As such, you must also examine whether or not you may meet these targets to avoid wasting on annual charges and guarantee your card advantages come freed from price, offered you clear your dues in full on time.”
Finance fees: Failure to repay bank card payments in full by the due date can incur finance fees, broadly ranging between 23% and 49% per 12 months, relying on the cardboard and its issuer. While it’s at all times sensible to pay your bank card payments in full by the due date, it’s nonetheless essential to examine and examine the relevant finance fees on gas bank cards as there may be at all times a risk of incurring these fees because of a monetary exigency or sheer negligence.
Reward factors expiry: The reward factors of most gas bank cards expire in two-three years from their date of credit score. However, some bank card issuers provide playing cards with out expiry on reward factors. “Ensure to learn the phrases and circumstances relating to the redemption, accumulation and expiry of reward factors earlier than zeroing in on a gas card,” mentioned Arora.
Joining bonus and welcome advantages: Another very important parameter to consider is to match the becoming a member of bonus and welcome advantages supplied by varied gas card issuers.
Shetty mentioned, “You ought to attempt to perceive the precise worth proposition of utilizing such a bank card in accordance with your necessities and finances whereas contemplating the relevant riders. You must also bear in mind riders like reward factors and cashback caps.”
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