If you're someone with less-than-stellar credit, getting approved for a gas card might feel like a pipe dream. But don't sweat it too much – your credit struggles won't keep you from enjoying the benefits of a gas credit card. In fact, there are several gas cards out there designed specifically for people with bad credit. In this guide, you'll learn about your options and the steps to take on your journey to financial success. Let Flik Eco be your guide in exploring the world of gas cards for people with bad credit!
Gas Cards For People With Bad Credit Table of Contents
Gas Cards for Bad Credit: How they Work
Gas cards with bad credit are designed to help people with poor credit history start building their credit score while enjoying the benefits of a fuel rewards program. These cards are typically secured credit cards, which means you need to provide a security deposit as collateral. The deposit usually determines your credit limit. By making timely payments and keeping your balance low, you can show the card issuer and the credit bureaus that you're responsible with credit and improve your score over time.
Considerations When Choosing a Gas Card for Bad Credit
Before you apply for any card, consider the following factors:
1. Security Deposit: Secured credit cards require a deposit. Be prepared to put down a deposit that's within your budget and consider the credit limit that you'll receive in return.
2. Annual Fee: Some cards charge an annual fee. Ensure it's reasonable and doesn't outweigh the benefits you'll receive.
3. Interest Rate: Gas cards for bad credit tend to have higher APRs. Evaluate your ability to pay off the balance each month and not carry over a balance to avoid interest charges.
4. Rewards Programs: Look for gas cards that offer rewards on gas purchases, such as cashback or discounts at the pump.
5. Reporting to Credit Bureaus: A key purpose of these cards is to rebuild your credit. Make sure the card issuer reports your behavior to all three major credit bureaus (Equifax, Experian, and TransUnion).
Top Gas Credit Cards for Bad Credit
While your options may be limited, there are still gas cards that cater to individuals with bad credit. Here are some of the best ones to consider:
1. Discover it® Secured: This card allows you to earn 2% cashback at gas stations and restaurants, up to $1,000 in combined purchases each quarter. You'll also earn 1% cashback on all other purchases. There's no annual fee, and Discover reports your account activity to all three major credit bureaus.
2. OpenSky® Secured Visa® Credit Card: While this card doesn't offer specific gas rewards, it's a solid option if you're looking to rebuild your credit. There's no credit check required, and they report to all three credit bureaus. However, it does charge a $35 annual fee.
3. Shell Fuel Rewards® Secured Mastercard®: This card offers rewards specific to Shell gas stations. You'll earn 10% rebate on the first $1,200 of non-fuel purchases at Shell and 2% on the first $10,000 of non-fuel purchases at other merchants per year. It also charges a $25 annual fee.
Gas Cards For People With Bad Credit Example:
Let's say you choose the Discover it® Secured card and make a security deposit of $300. This gives you a $300 credit limit. You use the card to make $100 in gas purchases each month and diligently pay your balance in full each month.
By doing so, you'd earn 2% cashback on your gas spending, equating to $24 annually. Plus, since you're paying off your balance each month and not carrying any debt month-to-month, you'll save on interest expenses. Over time, your responsible behavior will be reported to credit bureaus and should improve your credit score.
Obtaining a gas card with bad credit can be the stepping stone you need for financial success. When used responsibly, gas cards can help you save money on fuel expenses while rebuilding your credit score. Remember to evaluate your options carefully, consider the factors mentioned in this guide, and choose the best gas card for your specific situation. If you found this guide helpful, don't forget to share it with friends and explore other valuable articles on Flik Eco for more personal finance tips and knowledge!
