How to choose a gas credit card

A gas credit card describes any rewards credit card that offers cash back or rewards points for gas purchases. Yet within this category, there are credit cards that offer flat-rate rewards for gas and other spending, cards that offer bonus rewards for gas purchases all year or in specific quarters of the year and gas credit cards that are affiliated with retailers or gas station brands.

The key to choosing a gas rewards credit card is knowing how each type works and which one rewards your gas spending style the most. Some of the best gas rewards cards that offer the highest cash back rates also come with annual fees and bonus rewards limits, and so knowing how much you spend fueling up each year can help narrow down your card options.

Federal data shows the average household spent $2,148 on gas in 2021 — the last year the U.S. Bureau of Labor Statistics compiled this information. The agency also forecasts the average household will spend between $2,140 and $2,730 on gas annually in 2023. This means the average family will wind up spending $179 to $227.50 per month on fuel-ups this year.

As gas prices surge, knowing if you typically spend more or less than that on gas each month can help you find the right card, as well as estimate how much you’ll earn in rewards.

Types of credit cards that reward you at the pump

Rewards credit cards are all unique when it comes to their rewards rates and cardholder benefits. But rewards cards for gas tend to fall into one of three categories — rotating category rewards credit cards, flat-rate cash back credit cards and co-branded credit cards for gas.

Rotating category cards

Some rewards credit cards offer bonus rewards on gas during specific quarters of the year, although often with limits. Rotating category cards also tend to come with no annual fee, and they earn cash back on all purchases made with a card — not just on gas.

The interesting thing to note about rotating category cards is that you won’t know ahead of time which quarter you’ll earn bonus rewards on gas in — or if you will at all. Gas is typically included as one of the bonus categories on these cards, but it’s not a guarantee.

An example of a rotating category card for gas is the Discover it® Cash Back Credit Card. This card offers 5 percent cash back on up to $1,500 spent in quarterly bonus categories (then 1 percent back; activation required), as well as 1 percent cash back on other purchases. Discover also doubles all rewards earned after the first year, and there’s no annual fee. Discover’s Cashback Calendar included gas and digital wallets in the third quarter of 2023 — or from July to September.

Pros

• Earn cash back rewards on all purchases, not just gas
• Typically earns bonus rewards on gas during one quarter each year
• Tends to have no annual fee
• Fuel up at any gas station you want

Cons

• Bonus rewards on gas are typically only offered three months per year
• Rewards rates for regular purchases are unimpressive compared to other cards
• Other quarterly bonus categories may not be useful to you

Flat-rate cash back cards

You’ll find flat-rate cash back credit cards that offer the same rewards rate on all purchases — or fixed bonus rewards on gas purchases and in other categories. Cards that fall under flat-rate rewards tend to come with no annual fee, and they often have welcome bonuses to entice people to sign up.

A solid example of a flat-rate cash back credit card for gas is the Blue Cash Everyday® Card from American Express. This card has no annual fee, and new cardholders can earn $200 back after spending $2,000 on purchases within three months of account opening. The card also offers:

• 3 percent back on up to $6,000 spent at U.S. gas stations each year (then 1 percent back)
• 3 percent cash back on up to $6,000 spent at U.S. supermarkets each year (then 1 percent back)
• 3 percent back on up to $6,000 spent at U.S. online retailers each year (then 1 percent back)
• 1 percent back on all other purchases

Other flat-rate cash back credit cards offer the same rewards rate on all spending. The Wells Fargo Active Cash® Card is a good example, offering a flat 2 percent cash back on all purchases — including gas — with no annual fee.

Pros

• Earn cash back rewards on all purchases
• Earn bonus rewards on gas each year (up to certain limits)
• Tends to have no annual fee
• Fuel up at any participating gas station you want

Cons

• Annual bonus rewards caps limit rewards potential
• Various limitations can apply
• You may only earn 1 percent back on regular purchases

Co-branded credit cards

Finally, some gas station brands offer their own gas rewards credit cards, while warehouse stores might have their own co-branded credit cards as well. These cards can offer bonus rewards on gas and other purchases, but you’ll want to compare options side-by-side to understand how they work and what their rewards potential is.

An example is the BPme Rewards Visa®*, which is a rewards credit card for gas that can be used anywhere Visa is accepted. This credit card offers discounts on Amoco fuel purchases specifically, as well as 5 percent cash back on non-fuel purchases at Amoco and BP stations, 3 percent cash back on groceries and dining purchases and 1 percent back on other spending.

This means it’s best for people who typically fill up on fuel at BP and Amoco gas stations, compared to those who may fill up at many different brands throughout the month.

Then there are the warehouse gas credit cards, which can be much more flexible but typically require that you have a warehouse membership. A top card in this category is the Costco Anywhere Visa® Card by Citi*, which earns 4 percent back on up to $7,000 spent each year on gas and EV charging purchases (then 1 percent back), 3 percent back on restaurants and eligible travel purchases, 2 percent back at Costco stores and Costco.com and 1 percent cash back on other purchases. You must be a paid Costco member to qualify, but you can earn bonus rewards at gas stations worldwide — not just at Costco gas stations.

Pros

• Earn cash back rewards on all purchases
• Earn bonus rewards on gas each year (up to certain limits)
• Tends to have no annual fee

Cons

• Annual bonus rewards caps limit rewards potential
• Bonus rewards may only apply at certain gas stations
• Co-branded gas station cards tend to have low rewards rates
• Certain memberships may be required

What to consider when choosing a gas card

Given how widely gas rewards credit cards can vary in their benefits and rewards structures, it can be difficult to determine which one is best for you. Consider your budget, your spending habits and your preferred rewards type when weighing cards.

Annual gas spending

Figure out how much you typically spend on gas each year, and then run the numbers to see how much you could earn in rewards with different cards. While some gas credit cards have annual limits on bonus rewards in this category, they tend to be high.

For example, you would have to spend $500 per month on gas at U.S. gas stations to max out this bonus rewards category on the Blue Cash Everyday card each year, after which you’d still earn 1 percent cash back on gas station purchases.

Where you fuel up

Also consider which gas stations you tend to frequent, including whether you’re loyal to a specific brand or get gas all over the place. This factor is most important if you’re thinking about getting a co-branded gas station card that only offers bonus rewards on gas from specific stores.

Rewards type

Next, consider the type of rewards you’ll be earning and how you can redeem them. Most cash back credit cards offer flexible redemption options like statement credits and gift cards, yet co-branded gas credit cards can be limited.

For example, the Costco Anywhere Visa only gives you your rewards once per year after your February billing statement closes, and you can only redeem rewards for merchandise or cash back in Costco stores.

Other earning rates

Also note the other rewards rates gas cards offer, including how much you’ll earn on everyday purchases in other categories you tend to spend a lot on.

For instance, if you don’t want to manage multiple cards, a flat-rate cash back card like the Wells Fargo Active Cash that rewards you equally for all purchases can give you some cash back on gas station spending without adding unnecessary complexity to your wallet.

How much savings can you get with a gas credit card?

With the average American household expected to spend between $2,140 and $2,730 on gas, it’s easy to see how much you could earn on gas alone:

• With a card that offers 1 percent back on gas, you could earn between $21.40 and $27.30 on gas purchases.
• Meanwhile a card that earns 2 percent back on gas could net you $42.80 to $54.60 on gas purchases.
• Further, a card with 3 percent back in this category could help you earn $64.20 to $81.90.
• If you maximize your 5 percent cash back rewards on a rotating category card, you could earn between $26.75 and $34.13 in that quarter alone.

Don’t forget that these rewards estimates would be in addition to any credit card sign-up bonuses you earn, as well as your rewards for regular spending.

The Discover Cashback Match™ program, for example, automatically matches all the cash back you’ve earned at the end of your first year. If you maximize the card’s 5 percent bonus categories each quarter, you can earn at least $600 — $300 in cash back and $300 in matching rewards (plus any additional rewards you earn at the 1 percent cash back rate).

The bottom line

Choosing a gas credit card can be tricky, because there are so many to choose from — all with different rewards structures, cardholder perks and features. Before deciding on a card, figure out where you fuel up the most and how much you normally spend on gas each year. From there, you’re better positioned to pick the card that best fits your spending patterns.

That said, not all cards with bonus rewards for gas are great for everyday spending. For that reason, you may want to pair a dedicated gas card with another cash back credit card or rewards credit card that offers a stronger rewards structure for other purchases you make.

Information about the BPme Rewards Visa® and the Costco Anywhere Visa® Card by Citi has been collected independently by Bankrate. Card details have not been reviewed or approved by the issuer.