gas credit cards
Gas credit cards are a form of credit cards whereby using the credit card in gas stations allows the user to avail certain discounts.
However, changes in polices by credit card organizations mean that charges for usage have been raised and now the cards fail to serve the purpose that they were initially designed for.
The changes in charges have not been announced on a wide scale and this means that many users who are unaware of the changes have to pay more when filling in gas.
I can say this because I have been a victim of the gas credit cards whereby I recently found that using gas credit cards at the gas station results in a 6%-8% higher charge as opposed to a cash payment.
The extra payment is termed as “service charges” and this simply raises the cost of fuel for an average income person like me. There is no doubt to the fact that credit cards provide several incentives but using credit cards at gas stations are no longer beneficial due to recent charges introduced by the companies.
Gas credit cards have a shorter time frame for repayment as opposed to normal credit cards that allow up to a month time credit without charging any interest.
Moreover, the interest rate is also charged at 25% which is considerably higher than the normal interest rates charged on credit cards. The fact that filling up with gas through credit cards results in an extra service charge and repayment must be done in a short time period means that there are virtually no advantages of using this type of credit card.
A person is likely to be far better off by using cash or a cash rewards card instead like the USAA Rewards American Express Card below where you can get hefty double points from gas purchases.
However, tight budget and high cost of living means that gas credit cards allows us to make a payment when we are short on cash. The extra service charge in lieu of the credit period is a satisfactory deal especially when the budget is tight and there is no contingency cash to fall back upon.
Furthermore, certain gas credit cards carry rewards in terms of credit which can be applied to purchases in the future.
The fact that more charges are being implemented for the use of plastic cards at gas station casts a doubt on using them despite their incentives. Higher charges as opposed to cash mean that they have little value from a user point of view.
However, I do not believe that the cards should be discarded. This is because despite their high charges they do have some benefits that cannot be denied.
Cash can be used at times when sufficient cash is available so that extra charges are avoided. Conversely, the gas credit card can be used at times when there is no other source of finance available.
Gas credit cards are still worth it in times of need although they should not be used unnecessarily.
Have you also been a victim of the recent changes in the gas credit card policy and if yes, what is your point of view regarding their usage?
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Courtesy of CreditCardShoppe.com
