In the last few years, we have witnessed fuel prices rise exponentially. This is the costliest fuel has ever been in India and it is the common man who suffers the most from it. In such a scenario, looking for ways to mitigate the effects of rising fuel prices becomes necessary. One such way is by opting for a fuel credit card.
What is a fuel credit card?
Fuel credit cards are a kind of credit card that benefits the cardholder when they pay for their fuel using the card. These cards can help the consumers in saving on the cost of fuel considerably.
But how does a fuel credit card help?
The benefits of a fuel credit card can be reaped by the cardholder in multiple ways. They can either enjoy amazing cashback offers or avoid the surcharges – it all depends on the card and the benefits offered.
Which fuel card should you get?
Today, many major banks across the country offer fuel credit cards, helping you save big on fuel expenditure. Apart from the obvious benefit of helping you save on your fuel expenses; fuel credit cards also bring with them a bunch of other features such as:
- Reward points each time you spend, that can later be redeemed in several ways.
- Regular cashback schemes to help you save on utility bills, dining out and other such expenses.
- Annual fees and surcharge waiver, etc.
But how do you know which one will suit your requirements the best? This list of things to remember before taking a fuel credit card will help you choose better:
- Make sure you are eligible.
While this requirement varies from bank to bank, the fundamentals remain the same. When applying for a credit card, make sure you meet the basic eligibility criteria. For example, you must have a good credit score and you must also fulfill the minimum income and age requirements, which again, vary from bank to bank and from product to product.
- Understand the benefits.
There are several advantages of credit cards that cardholders can enjoy monthly and/or annually. But to truly leverage the various benefits offered by a fuel credit card, you must first understand all the benefits thoroughly. For instance, the Bajaj Finserv RBL Bank SuperCard is a co-brand credit card that offers a fuel surcharge waiver. Fuel surcharge waiver essentially means that when you use your SuperCard to pay for your fuel, you don’t have to pay the applicable surcharge fee.
- Monitor your monthly fuel spend.
This is, perhaps, the most important aspect of getting a fuel card. How much do you spend on fuel monthly? What is your commute like? It is crucial that you analyze your fuel expenditure and set a monthly fuel budget before taking a fuel credit card. Getting a fuel credit card without breaking down your fuel expenses every month completely defeats the purpose.
- Keep a tab on the fees and charges.
Fuel credit cards are generally associated with certain fees that essentially allow you to purchase the benefits. However, if you end up paying fees higher than the discounts offered by the card, it can negate the benefits. Therefore, it is important to assess all the associated fees before getting a fuel credit card.
This assessment must be made in tandem with monitoring your monthly fuel expense to reap the maximum benefits of a fuel credit card. Think about it as a cost analysis. Is the amount being spent on fuel and the fees feasible vis-à-vis the benefits offered? If the answer is yes, you’ve chosen the right fuel credit card. If the answer is no, it is wise to explore more options.
- Does the redemption process work for you?
Different fuel credit cards have different redemption processes. Some offer instant redemption of credit card points while others offer a longer redemption cycle. Before zeroing down on a fuel credit card, it is important to check its redemption cycle so that you are not taken by surprise later.
Fuel credit cards can not only help you save on your fuel-related expenses, but they also make spending rewarding. But to make the most of all the benefits offered, you must choose and use your fuel credit card wisely.