Best Gas Credit Cards of 2019

To get the best gas rewards credit card, you'll want to maximize the gas rewards rate and have the ability to earn rebates when paying for gas. Here are a few factors to consider when deciding how to earn the most gas rewards, and therefore, find the best gas credit card for you.

Find the Right Type of Gas Credit Card

There are three types of cards that reward gas purchases: co-branded gas credit cards, cash-back credit cards, and generic travel and rewards credit cards. Which one works best for you depends on your preferences or financial needs. Here are the key details of each.

Co-branded Gas Credit Cards

These cards are co-branded with a gas company such as BP, Shell or Chevron and typically offer the best rewards on gas purchases at their respective stations. They generally also don't charge an annual fee. But use this card as a supplemental credit card in your wallet. That's because the rewards rates for other purchases, such as groceries and restaurants, aren't as rewarding as other cards. You also can only use points you earn with these cards for discounts on gas purchases. Other card types have more flexible rewards redemption options.

Cash-back Credit Cards

Cash-back cards give money back on each purchase and come with a fixed cash-back rate or a rate on rotating categories. Cards with a fixed cash-back rate offer one cash-back rate on all purchases, such as 1.5% on every purchase. Cards with rotating categories cards give cash back for certain types of purchases that change each quarter. For instance, a card could provide 5% back for grocery purchases from January to March and then on gas from April to June. But the cash-back rate on purchases outside the rotating categories typically isn't as generous. Chase, Discover and U.S. Bank all offer rotating-category cards. Cash-back credit cards are a good option if you want simple rewards redemption options and a higher rewards rate for everyday purchases.

Generic Travel and Rewards Credit Cards

These cards typically reward points for purchases that can be redeemed for cash back, flights, hotel stays or statement credits. You'll typically get the best value if you use points for travel-related expenses. It's important to note that these cards don't generally consider gas purchases as travel purchases. Unless the card specifically lists gas stations as an awards category, you should expect to earn just 1 point per dollar spent. Generic travel rewards cards are best if you want to maximize your rewards value and have the most flexible rewards redemption. You'll also receive a higher rewards rate for entertainment, travel and restaurant purchases.

Co-branded vs Generic Travel and Rewards Credit Cards

Deciding between a co-branded and generic rewards credit card to maximize your gas purchases depends largely on where you consistently fill up. If you frequent a certain gas station chain, then a brand-specific credit card might make sense. Look for a card that offers 3% gas rebates or higher, because that's what general credit cards typically provide for gas rewards. Some gas cards can only be used at the chain's locations, limiting how much you can earn. Others cap gas rebates each month or quarter. Generally, you won't earn rewards at other stations and you'll earn just 1% on other purchases.

If you fill up at the cheapest or closest station, then a general rewards credit card is best for you. You can maximize your gas spending no matter where you refuel. But consider any caps on gas bonuses if you spend a lot on gas each month.

Consider How Much You Spend

Most gas credit cards don't charge an annual fee, but some do. Don't automatically write off credit cards with annual fees because they, at times, can deliver a better value. It usually depends on how much you spend. If you charge more than $12,000 a year on your card, the rewards you earn could offset the annual fee. But if you spend less than that, it's probably best to stick to a card with no fee. Don't forget to consider sign-up bonuses and other card perks that may be worthwhile and compensate for the annual fee. Try using our comparison tool above to compare the net rewards value per card, given your spending.

Alternatively, try this calculation: Multiply how much you spend annually by the card's rewards rate. Then, deduct the annual fee from the estimated value to get a card's net worth. Compare that with a 1.5% cash-back card with no annual fee. Multiply your annual spending by 1.5% to find out which card is the best option. Here are three scenarios.

What Cards Can You Qualify For?

Credit requirements for gas credit cards vary widely. Some cards are easier to qualify for, while others—such as rewards cards with higher annual fees—require excellent credit with a long credit history. If your credit score is good or you have a shorter credit history, it may be harder to qualify for some of these cards. If you have average or poor credit, your choices are limited and you should be more selective.

Most credit cards explain how to earn rewards as points per dollar spent or a percentage of cash back on all purchases. But gas cards show how much money is discounted on every gallon, such as 10 cents off per gallon for every $100 you spend at the gas station. These rewards are usually capped at some limit, such as 20 gallons.

This can make comparing gas credit cards to other cards challenging. Is it better to get 10 cents off per gallon or 1.5% cash back? To simplify, here's how to get a rewards rate for a gas credit card for easier comparison.

Method A: When the card provides a discount on gas for every $100 spent

Take the previous example of 10 cents off per gallon for every $100 spent on gas. If you buy 16 gallons, you'll save about $1.60 ($0.10 x 16). The rewards rate is equal to your savings divided by how much you spent to earn that savings, or $1.60 / $100 = 1.6%. You can compare that to a 1.5% cash-back card. In this case, the gas station card offers a higher rewards rate. Rebates offered by these cards often are single-use, meaning you forfeit any unused rewards. For example, if you get 15 cents off per gallon on up to 20 gallons but only use 10 gallons, then you lose the discount on the remaining 10 gallons.

Method B: Gas credit card that provides a discount on every gallon

Some gas credit cards provide you a rebate or statement credit every time you fuel up. The rewards rate on these cards is always tied to the price of gas. For example, if you get 5 cents off every gallon, when a gallon of gas costs $2.51, your rewards rate is equal to $0.05 / $2.51 = 2%.

Paying With Cash vs Credit

Some gas station owners offer a discount if you pay with cash instead of a credit card to avoid paying a fee that Visa, Mastercard and other payment networks charge merchants. It's possible you'll save more money paying with cash than getting the rebate offered by your gas credit card. If the credit card surcharge is more than your rewards rate, consider paying cash to save.