A gas credit card allows you to earn rewards on every purchase made, which you can use toward other purchases in the future. You can use your credit limit on gas cards at various gas stations, including Petron, Shell, and Caltex.

Given how much gas prices have risen over the last couple of months, having a credit card that allows you to earn rewards or cashback will help you cover the high fuel bills. Another factor contributing to gasoline inflation is the increasing demand for gasoline and other petroleum products.

So, before you complete that application form for a gas card, here's all you need to know about them.

What is a gas credit card?

Gas cards provide greater convenience and flexibility to consumers, who primarily use gas as their mode of transportation. Gas cards are also an efficient way to purchase fuel. By using a fuel credit card, you can buy gasoline and other commodities at stations run by the service provider's partners like Shell.

For example, if you run out of gas while driving on a weekend or holiday, it might be tricky to withdraw money from a bank or credit union, especially if you don't have an ATM card. However, if you have a gasoline card, all you need to do is fill up your tank and pay off your balance before, on the due date or in monthly installments.

How do gas credit cards work?

Gas credit cards work the same way as any other credit card. You pay the balance in full, plus interest, after using the card for a set number of days. It might range from 30 to 180 days. The best part is that using your card at the gas pump can earn you bonus cash.

Some organizations charge an annual fee, while others do not. Some allow consumers to obtain rewards for using their fuel, such as Petron. On the other hand, others, such as Shell, offer rewards for purchasing their gasoline brands.

Additionally, some gas stations provide flat rates per gallon that can be applied as cashback on subsequent purchases. Regardless of the card type or the bonus rewards you have accumulated, cashback benefits allow you to get back the money you spent on gas.

How do you choose the best gas credit cards?

Gas credit cards work like any other loan card. The main difference is that instead of using your regular card to buy gas, you'll use a credit card specifically designed for gas purchases. You'll still get the same rewards and perks on your regular card, but it's just made for gas purchases.

Therefore, before you drive your car to a gas station and use just any card to fuel, here is how you can choose the best gas credit card.

1. Consider what kind of car you drive. If you are purchasing fuel, the best credit card is one that allows you to use the gas you prefer or use regularly. For example, if you frequently fill up at Shell, get a Shell Citi Card or the Eastwest Hyundai Mastercard. These two cards will enable you to enjoy cashback on gas at any gas station in the country.
2. Consider your financial situation. Before you get too excited and apply for a fuel card, ask yourself, is a gas credit card worth it? If it is, and the cash rewards are worth it, then choose a fuel card appropriate for your lifestyle and spending habits, just as you would any other. If your everyday purchases are not limited to fuel purchases, apply for a shopping, travel, or air mile credit card that offers fuel rebates. However, if you rarely shop and only need the card for fuel purchases and gas rewards, use a card built for that purpose, such as a branded petrol loyalty credit card. When you select a gas rewards credit card, the cashback you receive will also help improve your credit worthiness.
3. Consider your rewards. If you're looking at a gas card specifically because you don't have access to credit, then look into cards that offer rewards programs or other incentives aimed at helping people who don't have access to credit.
4. Consider redemption value and caps. You must compare which incentives appeal when deciding which gasoline credit card to use. For example, every five liters of Caltex gasoline or diesel earns you one Go rewards point. One Go reward point entitles you to a ₱1 discount for every five liters of Caltex fuel. Additionally, every ₱125 spent at Shell earns you one Go+ point. On the other hand, Petron awards you 10 points for each liter of premium lubrication products and 5 points for each liter of Standard lubricant products.

How do you make the most of your petroleum cards?

It is possible to get the most out of your credit cards by using them carefully. You must, however, guarantee that you use your gas card effectively to receive rewards as you could end up saving hundreds of pesos per month.

Here are a few ways to get the most out of your fuel cards and maximize your rewards:

Set up auto payments

By setting up auto payments, you can stop worrying about missing a payment each month. You can utilize the cashback you get from making combined purchases in bonus categories as a statement credit to pay down the gas card debt. You can even set a higher monthly deduction amount to avoid incurring any late fees from amounts carried down.

Buy fuel in bulk

You should always fill up your tank when you have the funds and the opportunity. When you buy in bulk, you save money, which is important now that gas prices are rising. You will also save money on gas and oil over time, enabling you to spend on other things. Additionally, you can lessen your carbon footprint by choosing the fuel type you prefer, which might not always be an option at the pump.

Always use your rewards

Keep an eye out for promotions and sales. You will earn more cash rewards as you spend less on gas. You may also get additional car maintenance done during these promotions, which will help you save even more money.

Use balance transfers when you can

An excellent way to raise the interest rate on your gas card is through balance transfers. Balance transfers allow you to pay off your debt more quickly and save money on interest by moving money from one account to another. When you use a balance transfer, you may also be eligible for a lower interest rate card, making it simpler to pay off your debt without paying more than is necessary. Therefore, using a credit card with a lower interest rate may enable you to save more money on gas as you pay off your consolidated loans.

Opt for a cashback card over a general-purpose card

When you're using a gas credit card, it's essential to choose the right one. If you're not careful, you might end up with a general-purpose card that doesn't provide the best value when filling up your tank.

Gasoline cards provide cashback on gas purchases, which makes them ideal for anyone who spends a lot of time driving or commuting by car. You can use them to earn rewards, which you can redeem for gift cards or other perks. They also sometimes have high annual membership fees and low-interest rates, so they're not a good option if you don't drive frequently enough to offset those costs.

Why choose Cashback gas credit cards?

Cashback cards are more flexible than other gas cards in that they can be used anywhere rather than just at gas stations, as some travel rewards programs do, though some companies will allow you to use them at supermarkets. Cashback cards are similar to coupons because you can use them to save money on things you already buy from the grocery stores, but they don't expire and have no additional requirements. You pay your bills with the card and then receive your cashback and you can redeem rewards later. Most cashback cards offer up to 5% cashback on fuel and other purchases at gas stations and other fuel retailers, so filling up your tank once a month can earn you up to ₱1,000 in annual rewards.

There are two types of cashback gas credit cards: those that offer a percentage of your purchase and those that offer a flat sum of cash back. The first is the most common. As a rebate, these credit cards offer a percentage of your purchase, ranging from 0.5-5%, depending on the card. For example, if you spent ₱100 on gas with this type of card, you could receive a 2 to 10% rebate. On the other hand, flat-rate cashback cards operate differently. Instead of a percentage of your purchase returned in cash, these cards offer a fixed amount applied directly to your balance at the end of each month. Some flat-rate cashback cards even provide double or triple rewards when used at specific retailers such as Shell, Caltex, restaurants or grocery stores.

Why choose General-purpose gas credit cards?

General-purpose gas credit cards can help you save money on fuel costs while helping you in other ways. They provide rewards for every peso spent, allowing you to earn cashback or points toward other eligible purchases. Some of these rewards are more valuable than others, so do your homework before selecting a card based solely on its rewards.

Furthermore, some fuel credit cards offer special promotions that discount gas purchases —sometimes as much as 6% off per gallon. That's a significant difference in your overall cost of car ownership.

Types of fuel credit cards rewards

Using gas cards can help you save money on future gasoline purchases. They make it simpler to locate the gas station with the most affordable prices and simplify paying for gas.

Shell cards

Shell gas cards are an excellent way to save money on gas. Shell and other financial institution partners such as Citibank and RCBC, issues these gas cards in the Philippines. You can use these cards to make interest-bearing fuel purchases at participating Shell gas stations. Shell's fuel rewards program awards points for every peso spent on gasoline at participating Shell stations. You can use these points to get discounts on future fuel purchases or to enter contests or other promotions. Individuals must be at least 18 years old to join. To activate the card, applicants must follow the set conditions by their specific bank.

Shell gasoline cards include the following:

• Shell Citi Card. You receive cashback up to 5% on Shell gasoline purchases, NLEX/SLEX tolls, and auto repairs, accessories, and services nationwide. You will also receive a ₱300 welcome gift as a Shell fuel rebate on your first purchase of at least ₱300, as well as 24/7 emergency roadside help once a year. There is also a 10% discount on Shell Helix oil change packages.
• Eastwest Hyundai Mastercard. You receive a ₱1,000 Hyundai voucher as a welcome gift, a 10% discount on preventive maintenance services, parts, labor, selected accessories, and up to 5% cashback on fuel rebates at any gas station in the country.

Caltex cards

Caltex credit cards are intended to provide cardholders with comfort and security. Among their many benefits are a 24-hour hotline, no annual fee, free emergency cash advances, and monthly interest-free days. The best thing is that you may use your Caltex credit card to pay for your petrol purchases, eliminating the need for you to carry cash.

They include:

• HSBC Gold Visa Cashback. Using your HSBC credit card at participating stations, you receive a 3% reward on every purchase. With newly approved HSBC cards, you will earn a rebate of 6% of the total cost of your qualifying Caltex purchases. However, any sum above ₱20,000 spent on Caltex purchases per month will not qualify for reimbursement.
• PNB Mastercard. You will get a 3% discount on your total cumulative Caltex fuel purchases during the relevant billing cycle. However, you must have spent a minimum of ₱3,000 but not more than ₱20,000 during the billing cycle in question.

Petron cards

Petron Corporation operates a loyalty and rewards redemption program that strives to give cardholders rewards, points, and discounts as they make any eligible purchases. For every liter of premium lubricant goods you buy, you earn 10 points; for every liter of regular lube products, you earn 5 points. Your Petron value card also enrolls you automatically in ₱1,000 in medical reimbursement coverage and ₱10,000 in accidental death and dismemberment coverage.

Petron gasoline cards include the following:

• Petron-BPI Mastercard®. With this Mastercard, you can get a ₱200 free fuel voucher and a 3% rebate for the primary card's annual membership fee of ₱1,550.
• Security Bank Complete Cashback. You get a 4% fuel reward with instant cashback when you use this card at any participating Petron station nationwide. You also receive rebates in other spending categories, such as groceries, utilities, eating, and shopping. Additionally, you can benefit from an annual payback of up to ₱12,000 with no first-year annual fees.

Pros and cons of gas rewards cards

Gas cards, like other reward cards, offer several perks, such as accumulating points for everyday purchases on fuel. They are also ideal for people who want to earn points for travel, shopping, or other activities. However, there are some disadvantages to consider before applying.

Pros

• They offer members a variety of benefits. Cardholders receive discounts on gas and other travel-related services, as well as car rental insurance coverage and roadside assistance programs.
• They are easy to get and easy to manage. You can make gas station purchases without worrying whether you have enough money in your bank account right now.
• They are easy to use. Gas credit cards are simple to use and practical, ensuring that you can make the most of your card when you need to pay for gas. They also make it easy to plan for when you need gas, so you do not have to worry about losing track of your money or running out when you need it the most.
• They are available in most areas. You can use gasoline credit almost anywhere in the Philippines as long as your preferred gas provider is present.
• They are available to anyone over the legal age. Gas credit cards are ideal for young adults who do not have much money saved up but want to increase their spending power without breaking the bank.

Cons

• They have high-interest rates. Some gas credit cards have higher interest rates than regular ones, so compare them before signing up. If you miss payments or do not pay off your balance in full each month, you will end up paying more in the long run.
• They have high fees. Gas credit cards often have high fees, such as monthly or annual maintenance fees.
• They have no incentive to pay off debts early. If you have a balance on your fuel card, paying it off early may not be beneficial because you will pay more interest.
• They have limited incentives. If you have not used your card frequently, you may have difficulty getting the most out of your rewards points.

The main requirements for getting a gasoline credit card

Before a provider can approve your gasoline credit card, you must first meet specific requirements. These include:

• You must be of legal age
• You must have a valid Philippine passport or ID card
• You must be able to provide proof of employment if employed
• You must have a steady source of income with a good credit history
• You must be able to pay off the card in full each month
• You must have a credit score of at least 650 points

How to apply for a gasoline credit card

After you meet the required conditions, follow these steps to apply for a gas card online:

1. Go to the website of your preferred bank.
2. Choose Products.
3. Select Credit Card.
4. Select the type of the card you want.
5. Click on Apply Now and properly fill out the required information in the form.
6. Click Submit.
7. Wait for confirmation.

How to repay gasoline credit card debt

Paying off a gas card debt is similar to paying off any other type of debt, where the credit card company will almost certainly charge you interest on the amount you pay each month. If you are unsure how much to pay back a gasoline debt, especially if your credit bill has not yet been sent, communicate with your credit card provider. They will assist you in setting up your billing cycle and the method by which you will receive invoices at the end of each period. Then, once you have determined how much you must pay, follow these steps to repay your gasoline credit card.

1. Navigate to the lender's website.
2. Choose Payments.
3. Select Credit Card loan.
4. Select the gas card you want to pay for.
5. Fill in all the transaction details.
6. Tap the Submit button.
7. Wait for a confirmation that the transaction has been completed.

Legal regulation of credit card market in the Philippines

The Bangko Sentral ng Pilipinas (BSP) has issued credit card rules and regulations in the Philippines. These regulations protect cardholders from the fraudulent, abusive, and harmful activities of dishonest credit card companies. They also seek to prevent financial institutions from taking advantage of credit card users.

These include:

• Credit card companies must provide consumers with clear information about the fees and interest rates associated with their cards to make informed decisions about which one is best for them.
• Credit card companies should create a clear policy to protect and satisfy customers, including provisions for dispute resolution.
• Credit card companies should ensure that information about interest rates, fees, penalties, and other charges is accurate and timely disclosed.

The actual cost of gas credit cards

Gas credit cards provide many advantages but at a cost. Here's a breakdown of what you should expect to pay if you do not get the best deal when using one of these cards.

• Annual fees. Most gas credit cards charge an annual fee, either a flat fee or a percentage of the purchase price. If you are considering getting a credit card with an annual fee, keep in mind that providers sometimes waive these charges as a welcome gift for the first year of the account opening. However, once the first year is over, they reapply the annual fees.
• Foreign transaction fees. Providers charged a foreign transaction fee for your gas spending outside the Philippines. It is a small price to pay for convenience, though it varies depending on the country and the currency you use. Remember that some cards do not charge this fee, while others charge as much as 2% of the purchase price.
• Balance transfer fee. These are fees charged on balance transfers — when some or all the cash is transferred between accounts at the same bank or financial institution. They typically range from 0% to 5%, though they may go higher if you transfer a significant amount of money. The price varies depending on the card. In addition, depending on the gas card, there is an intro balance transfer fee of up to 3%.
• Fixed monthly plan fee. You can apply for a single fixed monthly payment plan, which is less expensive than making several monthly payments. Compared to other payment plans offered by banks or credit unions, this plan sometimes has lower fees. All you have to do is make a set monthly payment. Although you are not required to make any further payments, the balance of your other eligible purchases will still be subject to interest charges.

Conclusion

Gas credit cards are helpful and can save you money. A fuel credit card makes it simple to pay for gas at the pump, eliminating the need to stand in line or use cash. Gas credit cards are also an excellent alternative to cash as they save you the trouble of carrying cash. If your card has a rewards program, you may be able to earn some extra money back at participating locations on your next fill-up.

Since there are several types of gas credit cards, do your research before applying for one. Some cards, for example, will only work at specific gas stations, eligible delivery service partners, or have a minimum amount required before you can use it. Others offer higher interest rates than traditional bank accounts, so be aware of this before you invest. As a result, a gasoline card will provide you with the convenience of purchasing fuel while earning bonus rewards as long as you do not exceed your limit.