Credit cards have brought financial relief to many people who swear by the benefits of their use in many walks of life. More than 50 million Indians use different types of credit cards, including fuel cards. Credit cards are used to pay for everything from utility bills and groceries to healthcare payments and holidays. Significantly, a myriad of Indians use them out of habit these days, and as they offer a secure way to pay, the power of cash at your disposal, rewards and cashback offers, they are becoming more and more popular as we speak. Using a credit card, prudently of course, can only help you to meet your financial expenses and improve your credit profile.
About Fuel Credit Cards
With curbs being lifted all over India, after the crisis of last year, many employees are returning to work. Offices have opened up again and there are more commuters on the road. Private vehicles have increased, and companies have more vehicles for goods transportation running, along with other transportation requirements. With all the vehicles in use nowadays, comes the increased cost of fuel that vehicle owners are forced to contend with. A fuel credit card might come handy and reduce costs to some degree.
Nonetheless, can fuel credit cards really help you to cut down your costs due to the escalating cost of fuel? The answer may be in the affirmative when you consider that credit card issuers provide credit cards of different types today. There is a credit card that you will find for every type of consumer. This results in various credit card types, such as those for shoppers, for instance. Credit cards are issued with the target consumer’s spending behaviour in mind. Fuel credit cards may go a long way in reducing the costs of fuel that are incurred by those consumers spending large amounts of money on fuel purchases. What do fuel credit cards offer you? For a start, they offer fuel surcharge waivers, that can amount to a huge amount in savings when you spend on fuel frequently. Fuel credit cards also come tied with cashback offers and reward points that are higher than those you get on non-fuel cards. Typically, a fuel credit card will be a co-branded card. This means that it is linked to select partner brands of fuel. You can earn reward points and cashback only when you use a specific card at the partner fuel outlet. You can find some of the best co-branded fuel cards at Finserv MARKETS.
Factors to Consider Before Applying for Fuel Credit Cards
Before you make an application to acquire a fuel credit card, you may consider some factors that may help you to decide to get one. They are listed below:
- Spending Habits – On a fuel card, the reward points you accumulate can only be redeemed when you incur fuel expenses at partner fuel retailers. However, some fuel card issuers permit you to redeem points at other partner online stores and use points as gift vouchers. Before you opt for a fuel credit card, consider the partners that are co-branded with it.
- Fees Charged – It’s always better to select a card that gives you more benefits in terms of reward points, fuel surcharge waivers and cashback than fees you pay for annual membership, joining or card activation. If this isn’t the case, you are spending more than you wish to save.
- Finance Charges – The single most important thing that you should note while using a credit card is to settle your repayments on time and in full. This rule of thumb pertains to fuel cards too. You may choose the best fuel card from a host on the Finserv MARKETS App, saving you funds while you swipe your card. However, your savings add up to practically nothing if you have balances that are carried forward and on which interest/a finance charge is levied. Finance charges may be levied upto 20%-40% annually.
- Expiry of Reward Points – On most fuel cards, reward points expire 2 to 3 years from the date on which they are credited to a credit card account. Nonetheless, some fuel cards offer reward points that have no expiry date. You should read the terms and conditions of a fuel card with care before you choose it.
- Welcome Promotions/Bonus at Joining – Various fuel credit card issuers give you welcome bonuses and attractive promotions when you apply for the card. Weigh different card benefits and see what is advantageous most to you. There are also different cashback caps on cards and you need to do research on this before making your choice.
To Wrap Up
You can save a lot of money if you use a fuel card regularly. At Finserv MARKETS, you can find cards like the IndianOil Citibank Platinum Card, BPCL SBI Card, etc, and lower your fuel spending significantly.
Raj Kumar is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance clap.