The increasing number of consumers with oil company credit cards means more gasoline purchases. This number has shot up drastically in the last 10 years. The gradual lowering of qualifying criteria for these cards and the amount of spending at the pump are the two primary factors that contribute to this growth. Today it has become far simpler and quicker to purchase gasoline with the card. All you should do is insert the card in the pump, fill the tank and move off. Many people love going for another credit card if it prevents them from queuing up for the gas.
Many people spend money of gasoline nearly every month. If you are going to work in your car, this expense will remain nearly constant for every month. Hence it makes sense to treat gasoline purchases just like other recurring expenses like rent or electricity bill. You should pay it in entirety each month. If you make only part payment, the bill will go on increasing in the successive months.
But sadly, very few people pay the whole balance in full every month. Those who do not do so, a gas credit card bill can be quite a shocker. These credit cards carry steep interest rates as against other types of credit cards. The interest rates are usually around 18-25% for these cards whereas other cards have far lower rate. For a person with good credit, these cards are available with an interest rate of about 10%.
For a person who does not pay the gasoline credit card in full, it is advisable to go for another credit card with a lower interest rate. Gasoline pumps that take credit cards will also take many credit cards. Hence using a regular credit card in place of gas card here is far better option. If possible, use Discover card since it offers cash back rebate each year on its usage.
Smart consumers who want to control the amount of interest they pay on their credit card bills should look around for another choice to the gas cards. Paying interest simply makes no sense.
Tags: Oil, Oil Companies