fbpx Skip to main content
0
Money Management

This Is the Only Reason to Get a Gas Station Credit Card

By October 2, 2023No Comments

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

Gas cards aren’t something typically recommended. Read on to find out what situation they may make sense in. 

Image source: Getty Images

I’m not shy about telling you when a credit card is junk. Most store cards? Junk. Gas station cards? Super junk.

Well, most of the time.

Believe it or not, there is actually one time when I’d argue it makes sense to get yourself a cobranded gas station credit card, and it requires two things to be true:

There’s a substantial welcome offerYou’re about to move long distance

If you can say yes to both points, then you have my blessing to sign up. Here’s why.

Moving trucks advertise 10 mpg

According to the EPA, average fuel economy for vehicles made in 2020 was 25.4 miles per gallon (mpg). The average moving truck isn’t so economical; they advertise 10 mpg. (From experience, I can tell you the reality is closer to 7 mpg, but we’ll use 10 mpg for the sake of this argument.)

Featured offer: save money while you pay off debt with one of these top-rated balance transfer credit cards

AAA says the average price of a gallon of gas right now is about $3.83. So, here’s what you’re looking at for gas on a move:

Distance (in miles) Gallons per trip Total cost 500 50 $191.50 1,000 100 $383.00 1,500 150 $574.50 2,000 200 $766.00 2,500 250 $957.50 3,000 300 $1,149.00
Data source: Author’s calculations

For context, it’s about 1,000 miles to move from Florida to New York. And a move from Seattle to Boston will take you about 3,000 miles.

I’ve seen up to $0.50 a gallon in savings

Now to the gas cards. I’ve seen welcome bonuses offering up to $0.50 per gallon off for the first month. So if you were to take advantage of this offer right before you’re set to move, you’re looking at a decent amount of savings on gas for your moving truck.

Distance (in miles) Gallons per trip Savings 500 50 $25.00 1,000 100 $50.00 1,500 150 $75.00 2,000 200 $100.00 2,500 250 $125.00 3,000 300 $150.00
Data source: Author’s calculations

At the high end, this is on par with a typical cash back rewards card welcome bonus.

Gas cards vs. regular rewards cards

Alright, before you say it, I know. When you’re going to spend $1,000 in gas — not to mention the cost of the truck — you can easily get a much better welcome bonus from a regular rewards card — plus you’ll earn rewards on the purchases. (Heck, if you’re going to charge everything for your move, you could even get the bonus on a travel rewards credit card. That could cover a free vacation once your move is done.)

However, there are a couple cases in which you may want a gas card instead:

You don’t have excellent credit. The best rewards cards tend to require good to excellent credit. Gas cards, on the other hand, are easier to get approved for, even with average credit.You’re in welcome-bonus time out. A lot of major issuers have rules about how often you can earn welcome bonuses on each card. Some even limit how many cards you can have. If you can’t qualify for a bonus from a rewards card, a gas card could be a good way to still earn rewards on your move.

Some credit cards are a no-brainer at any time. Others only make sense in special circumstances. Gas cards are definitely in the latter category. But the right gas card can actually be fairly valuable under those special circumstances. Moral of the story? Don’t judge a rewards card by its cover.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More 

More from my site

Leave a Reply