Having bad credit can feel like a heavy burden, especially when you need to fill up your gas tank every week. But don't worry, there is hope! Gas credit cards for bad credit exist, and they can help you save money while improving your credit score. In this article, we'll explore the benefits of gas credit cards for those with bad credit, the available options, and provide a realistic example of how using one can positively impact your financial life. Fuel up and let's dive in!
Gas Credit Cards For Bad Credit Table of Contents
Why should you consider a gas credit card for bad credit?
Why should you consider a gas credit card for bad credit?
Having bad credit can limit your options for obtaining a new credit card, but gas credit cards designed for people with lower credit scores can serve a dual purpose:
- Improve your credit score: By using a gas credit card responsibly, you can boost your credit score by making timely payments and staying within the credit limits.
- Save money on gas: Gas credit cards often offer rewards or discounts at gas stations, which can add up and save you a significant amount on fuel costs over time.
What to look for in a gas credit card for bad credit
When searching for a gas credit card, keep in mind the following factors:
- Interest rates: Due to your low credit score, you may face higher interest rates compared to those with a good credit. Compare the rates among different cards to find the best deal.
- Rewards and incentives: Look for gas credit cards that offer rebates, rewards, or discounts on gas purchases. Keep in mind that the reward structure may vary based on the card.
- Annual fees: Some gas credit cards may come with an annual fee, which can negate the benefits you get for using the card. Look for cards with low or no annual fees to maximize your savings.
- Credit reporting: Ensure that the issuer of your gas credit card reports to all three major credit bureaus (Equifax, Experian, and TransUnion) to help improve your credit score.
Top Gas Credit Cards for Bad Credit
Here are some of the best gas credit cards designed for those with bad credit:
- Discover it® Secured: This secured card offers 2% cash back on gas station and restaurant purchases on up to $1,000 per quarter, and 1% on all other purchases. It also has no annual fee and reports to all three credit bureaus.
- Credit One Bank® Platinum Visa® for Rebuilding Credit: This card offers 1% cash back on all eligible purchases, including gas, with no annual fee for selected applicants. It also reports to all three credit bureaus.
- Indigo® Platinum Mastercard®: This card is designed for people with low credit scores and offers no rewards, but it has no annual fee and reports to all three credit bureaus.
Gas Credit Cards For Bad Credit Example:
Suppose you own a Discover it® Secured card, and you spend $200 on gas and $300 at restaurants every month. That's a total of $500 in spending eligible for 2% cash back. Each quarter, you'd earn $30 back on your gas and restaurant purchases. In a year, that adds up to $120 in cash back rewards by just using your gas credit card for these purchases, assuming you stay within the $1,000 quarterly cap.
In addition to the cash back rewards, by making timely payments and keeping your balance low, your credit score will start to improve over time.
Choosing the right gas credit card for bad credit is crucial for reaping the benefits it can provide. While the journey to improving your credit may seem long, a gas credit card is a way to make the ride a bit smoother. So, buckle up, keep track of your spending, and watch your credit score rise with each mile you drive. Be sure to share this article with anyone who may benefit from a gas credit card for bad credit, and don't forget to check out other informative guides on Flik Eco for more financial wisdom!
