Like every coin has two sides, fuel credit cards have two sides but when on one side the coin doesn’t affect its value, the advantages and disadvantages may affect the user positively and negatively depending upon the user. To help you understand whether fuel credit cards are worth it, we bring to you advantages and disadvantages along with tips to maximize advantages and minimize disadvantages. So, let’s start:
Advantages of having fuel credit cards
- Saving: This is one of the best advantages of owning a fuel credit card, many fuel credit cards offer cashback which is real cash on the total expenditure you make on purchasing fuel in every transaction by using the fuel credit card.
- Attractive offers and rewards: Each credit card comes with unique attractive offers and benefits, the most common fuel credit card offers are cashback, reward points, eligibility for surcharge waiver, waiver on annual fees, concierge service, etc. Several fuel credit cards also offer sign-up bonuses to their new users when they meet spending requirements within a few cards.
Disadvantages of having fuel credit cards
- High charges and Interest rates: Fuel credit cards not only come with high annual charges but also fail to make the full payment on the due date could occur in high-interest charges ranging between 23% to 49% per year depending upon the card issuer. To overcome this disadvantage a person should make sure that the benefits the card is offering are greater than the charges the card issuer is charging along with making sure that he/she is financially disciplined, i.e., he or she must make sure that the full payment is done on or before the due date and only expenditure.
- Expiry date on offers and reward points: Most credit cards have an expiry date for offers and reward points ranging between 2-3 years. To overcome this disadvantage, a person should make sure he/she reads all the terms and conditions before applying for the fuel credit cards, regarding redemption, accumulation, and expiry of reward points before zeroing in on a fuel card.
3 Best tips to make your fuel credit card journey worth it
- Analyzing spending pattern and monthly budget: Before an individual decides to apply for a fuel credit card, he/she must ensure they have analyzed their expenses and monthly budget well so that they don’t fall into the trap of spending more than they have after owning a fuel credit card as they may lead to the card user not being able to full payment on or before the due, eventually leading him into a web of debt and high-interest charges.
- Analyzing terms and conditions on the card: Before apply for credit card, you must ensure that you have read all the terms and conditions carefully so that you are well aware of your decision and avoid any trouble in the future.
- Being financially disciplined: This is one of the most important tips that every credit card owner must follow. A user must make sure that he/she makes the payment in full on or before the date and does not overspend as it may lead them to an endless cycle of high-interest rates and debt.
After reading this article you must have understood that the fuel credit card is the greatest weapon anyone can ever have, it’s upon the user and his habits to decide whether it will lead him/her to destruction or a journey full of financial successes. Stay smart! Stay Safe! It’s the right time for you to switch to a smart solution – fuel credit cards for a smarter you, and make your day-to-day expenditure on fuel rewarding and money-saving. Wishing you a happy and safe journey as a future fuel credit card owner ahead. All the best!