Are you wondering how a credit card can bring down your fuel expenses? The answer to this question is ‘yes’ by getting a fuel credit card. Apply for a fuel credit card with various benefits such as cashback or higher reward points on fuel spends, fuel surcharge waiver, etc. By redeeming these reward points, you will not only be able to fuel your vehicle, but you can also save a tidy sum when you use your vehicle daily.
Most banks, including government and private-owned, provide various credit cards that offer waivers on fuel surcharges or reward points that you can redeem to pay for fuel. Look for the following features in a fuel credit card to bring down your fuel expenses:
- Fuel surcharge waiver
When you use a fuel card to pay for your fuel expenses, you must pay a surcharge. For motivating users to use a fuel card, issuers mostly waive these charges. The fuel surcharge is between 1% and 3% of the transaction value. With a fuel surcharge waiver, you can save this amount each time you use your card to pay for fuel.
- Covered at multiple fuel stations
Credit card issuers tie-up with various fuel companies to offer fuel card benefits such as reward points and fuel surcharge waivers. Hence, whenever you refill your vehicle at a partnered fuel station, you will qualify to earn reward points according to the terms and conditions of an issuer. For maximum benefits, you will need to apply for a card that gives you full benefits at those fuel stations you visit frequently.
- Redemption of reward points
Make sure that your issuer permits you to pay for your fuel refill via the accrued reward points. With this, you will be able to maximise your savings on your fuel bills. Accumulated reward points of most fuel credit cards have an expiry within two to three years; a few issuers offer reward points without an expiry date. It is always recommended to read the terms and conditions pertaining to reward points’ accumulation, redemption, and expiry before finalising on a fuel credit card.
A fuel credit card is a convenient option for lowering your fuel expenses; however, you should not miss factoring in the points mentioned above before shortlisting one.
For any clarifications/feedback on the topic, please contact the writer at bhavana.pn@cleartax.in
Bhavana is a Senior Content Writer handling the GST vertical. She is committed, professional, and has a flair for writing. When away from work, she enjoys watching movies and playing with her son. One thing she can’t resist is SHOPPING! Her favourite quote is: “Luck is what happens when preparation meets opportunity”.
