Petrol prices are outrageously high and likely to stay there. This is a factor out of our control, so the only thing left to do to get the expense of traveling under some kind of check and to stretch our money as far as possible. There are instances where using your credit card can save you money or get a discount per litre. This may mean if you dive a lot that credit card may be your best credit card to use. However, you have to monitor how you use it in order to receive optimal benefits.
What Credit Cards Can Do For You
If petrol prices are a major consideration for you, before you submit a credit card application sit down and do a comprehensive credit card comparison. Decide on the benefits which are most important to you. For example:
- Are you willing to pay a slightly higher interest rate for a generous rewards program that offers rebates or rewards on petrol purchases?
- Calculate your petrol usage per month. If you choose to put this expense on a credit card, will you be able to pay the balance off before the end of the billing cycle in order to avoid high interest rates?
- Do the petrol pumps in your area offer any kind of reward program for their affiliate or branded card with better benefits? There could be a reward program in place or it may also be a cashback credit card which will save you more money. Study each card and use a spread sheet, if necessary, to list the pro and cons. Compare interest rates and rewards to find the right combination for you.
What To Watch Out For
Using credit cards at the petrol pump can be a great way to keep track of petrol consumption with documentation for tax purposes. Since you will be buying petrol anyway, why not earn rebates or rewards? Also, it is very convenient to be able to pay at a petrol pump without ever having to go inside the establishment. Plus, you don’t have to worry about having cash on hand. You can take advantage of a price dip even if you don’t have the cash available.
However, if you carry a balance over from month to month, this might not be a good idea for you. The interest rates alone will make that expensive petrol even more expensive. Credit cards with a rewards program will typically have a higher interest rate. Calculations in this regard a very important, as the higher rate may not offset the savings. All-in-all, you are the only one who can make the decision if a credit card for petrol is worth it, but it can be an effective way to be thrifty at the petrol pump.