I just got a credit card and I was having a discussion with a friend about it and telling her that we were going to use the credit card (starting out anyways) every time we go get gas for our cars or the lawnmower. She said that you should never use a regular credit card on gas because it was a commodity and that I should get a gas credit card if I wanted to do that. Can someone explain the reasoning behind this to me?
2007-03-12 05:42:20 · 8 answers · asked by geniphurb 2 in Business & Finance ➔ Credit
Do you think maybe she was referring to the difference in APRs (in non-gas versus gas credit cards)?
2007-03-13 10:15:10 · update #1
There's no reason for not using your 'regular' credit card for gasoline purchases. But you can definitely benefit more if you used a 'gas' credit card. Since you can earn rebates / cash back every time you used a gasoline card, you can (in effect) lower your overall gas costs with one of these offers. You can find a great list of gasoline credit cards here:
http://www.asapcreditcard.com/gasoline-cards.html
TIP: You might consider using 2 credit cards instead of one. Use your regular credit card (with lower APR) for long-term purchases you can't payoff right away. This way, you pay less on interest while you carry the balance.
Use a reward credit card (ie. gasoline card) as your second credit card and only charge things you can pay off quickly. Even if the reward card has a higher APR, if you pay it off the balance each month-- you'll avoid the extra interest and earn rewards for your card usage!
Hope this helps!
2007-03-12 06:11:01 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The only think I can think of is that she was talking about something like Fuel Bank (although that one isn't live yet) - where you basically "lock in" your gas price.
Buying Fuel on the Web
Users sign up for a Fuel Bank card at www.fuelbank.com. Buying fuel on the web is easy. Select fuel grade and quantity. Using any major credit card, buy fuel at the special posted price. The price is locked-in and the gallons are deposited in a secure Fuel Bank account.
Pumping Fuel at the Station
Users may pick-up their pre-paid gallons at any gas station with their Fuel Bank card. Payment is made by swiping the Fuel Bank card at the POS or Pay at Pump. The User's Fuel Bank account is debited, the transaction is approved and a receipt printed. Fuel Bank arranges the transfer of funds to credit the gas station which redeemed the fuel.
2007-03-13 08:35:10 · answer #2 · answered by poonie 3 · 0⤊ 0⤋
You aren't INVESTING in gas, silly! Most people use regular credit cards (if they have them) at the pump because some offer 3% to 5% cash-back rewards. That's one way to make it a little less painful in the pocket!
If you're buying diesel fuel, they may charge you more to purchase on credit because many trucks use it and they charge it to the company. I figure it's a way for them to make more money, because it's several cents more per gallon (over a dime!)
2007-03-12 05:56:58 · answer #3 · answered by Anonymous · 0⤊ 0⤋
She knocked her head !
You better use a regular credit card, since gas credit cards interest is much higher !
2007-03-14 06:18:13 · answer #4 · answered by carlos 5 · 0⤊ 0⤋
Tees is no explanation for this thinking. It's simply silly. I use my Visa credit card for gas every month and pay the amount due in full so I never pay any interest.
2007-03-12 05:55:38 · answer #5 · answered by ? 7 · 1⤊ 1⤋
Your friend lacks a clue on the topic. You can get and use a gas card to buy your gas...but by no means is this a requirement, or even something you "should" do.
2007-03-12 11:18:25 · answer #6 · answered by Jason 3 · 0⤊ 1⤋
Your friend is nutty. No reason you shouldn't use your card on gas. I have done it for years. Very handy.
2007-03-12 05:50:52 · answer #7 · answered by Anonymous · 0⤊ 1⤋
I never heard that before. I don't understand it either. She said it so ask her the reasoning.
2007-03-12 05:52:01 · answer #8 · answered by wendy_da_goodlil_witch 7 · 0⤊ 1⤋