Does your credit rating stop you from taking advantage of rewards from gas credit cards? Fret not – we've got your back! In this Flik Eco article, we will dive into the world of gas credit cards for fair credit. We will explore the best available options and how you can benefit from them without having a stellar credit score.
Gas Credit Cards For Fair Credit Table of Contents
What is Fair Credit?
Before we delve into gas credit cards, it's essential to understand what fair credit means. Your credit score, calculated by various credit bureaus, is a crucial factor lenders use to determine your trustworthiness while repaying loans. The score ranges from 300 to 850. A credit score is typically categorized as follows:
- Excellent: 750+
- Good: 700-749
- Fair: 650-699
- Poor: 350-649
- Very Poor: Less than 350
Having a fair credit score implies that you have a less-than-perfect credit history and are hence considered a higher risk for lenders. However, several gas credit cards cater specifically to people with fair credit.
Gas Credit Cards for Fair Credit
There are numerous gas credit card options available for those with fair credit. Some of the best choices include:
1. Discover it® Secured Credit Card
- Rewards: 2% cash back at gas stations and restaurants up to $1,000 each quarter
- Minimum Deposit: $200
- APR: 22.99%
- Annual Fee: $0
2. Capital One QuicksilverOne Cash Rewards Credit Card
- Unlimited Rewards: 1.5% cash back on all purchases, including gas
- Variable APR: 26.99%
- Annual Fee: $39
3. Credit One Bank® Platinum Rewards Visa
- Gas Rewards: 5% cash back on the first $5,000 in gas purchases annually (1% cash back after)
- Variable APR: 23.99%
- Annual Fee: $95
These cards offer rewards on gas purchases while also helping to improve your credit score when used responsibly. Keep in mind that with fair credit, the interest rates and fees may be higher than cards for people with excellent credit scores.
How to Choose the Right Gas Credit Card for You
Now that you know your options for gas credit cards aimed at fair credit, here are some tips to select the best card for your needs:
- Consider the cashback percentage and other rewards being offered at gas stations.
- Compare the annual fees and interest rates of each card.
- Look for additional perks like travel rewards or cashback on dining, which can enhance your overall savings.
- Select a card that offers credit score monitoring and tools to help you improve your credit score over time.
Gas Credit Cards For Fair Credit Example:
Let's say you drive 20,000 miles per year and get an average of 25 miles per gallon. You would need to buy approximately 800 gallons of gas per year. With the average cost of gas at $3.50 per gallon, you would spend about $2,800 on gas annually.
Assuming you obtain the Credit One Bank® Platinum Rewards Visa with a 5% cash back on the first $5,000 in gas purchases, you would earn $140 (5% of $2,800) in cashback rewards. Although the annual fee is $95, this card could still save you $45 per year on gas.
Now that you have the necessary information, it's time to decide on the best gas credit card for your fair credit. Don't let a less-than-perfect credit score hold you back from reaping rewards and savings. Apply for a gas credit card that aligns with your needs and start earning cashback today!
Don't forget to share this article with others who may be in the same boat and exploring their options for gas credit cards with fair credit. For more personal finance and investing tips, make sure to check out our other Flik Eco guides!
