cancel
Showing results for
Did you mean:

## using credit cards for gas?

Frequent Contributor

## using credit cards for gas?

Is there even a point to use a credit card to buy gas? For the gas stations around me, they always charge a much higher price for those using credit cards, and wouldn't that just cancel out any awards earned than if I had just paid for gas with cash?
Message 1 of 40
39 REPLIES
Valued Contributor

## Re: using credit cards for gas?

subwaysandwich wrote:
Is there even a point to use a credit card to buy gas? For the gas stations around me, they always charge a much higher price for those using credit cards, and wouldn't that just cancel out any awards earned than if I had just paid for gas with cash?

What's the difference per gallon?

For e.g. current prices where I live are about \$3.50, so unless I see at least a 18 cent reduction, I won't pay cash For convenience, I'd keep the threshold at about 20 cents discount.

Message 2 of 40
Frequent Contributor

## Re: using credit cards for gas?

It's usually like 10 cents more just for using credit card
Message 3 of 40
Valued Member

## Re: using credit cards for gas?

I’ve wondered about this too but found its worth it if you do the math.  I guess it really depends on how much more it is to use a credit card – around here it is usually only a 10 cent/gallon difference.  So if you have a Chase Freedom (or something similar) which gets 5% two quarters out of the year it saves you more.  Let’s say you are charged an extra 10 cents/gallon for using a credit card.  If you buy 16 gallons you pay an extra \$1.60 just to use your credit card.  If gas is \$4/gallon that is \$64. 5% of that is \$3.20 – more than the extra you are paying to use your credit card. Even a card that gets only 3% back (more common) would be better by 30 cents under that scenario.

Starting: TU: 680 ; EX: 678; EQ: 672 / / Current: TU: 711; EX: 700; EQ: 703/ / Goal: 720;
Gardening since: 6/24/2016
Message 4 of 40
Highlighted
Valued Contributor

## Re: using credit cards for gas?

subwaysandwich wrote:
It's usually like 10 cents more just for using credit card

So while that's a pain, at 3.50 (3.60 for credit), I still come out ahead using credit on my SM, or for this quarter Discover It/Freedom (I come out VERY ahead on Freedom this Q for gas), since I'd be effectively getting a 18 cent/gallon discount using SM or IT

Current cards: MSUFCU Platinum, Amex PRG, Amex Surpass, Amex BCE, Citi Prestige, Citi Double Cash, Citi Premier, US Bank Cash +, Huntington Voice, AAviator, Sallie Mae, Discover IT, Chase Freedom TU:753 EQ Enhanced: 758
Message 5 of 40
Established Contributor

## Re: using credit cards for gas?

subwaysandwich wrote:
It's usually like 10 cents more just for using credit card

Theres no difference by me for paying with a card so I guess its worth it for me.  Currently gas is sitting at \$3.64 so a tank of gas earns me just under 3 bucks on my Discover or Sallie card.  Adds up fast for summer months when I feel like I'm constantly filling up.

Message 6 of 40
Moderator

## Re: using credit cards for gas?

subwaysandwich wrote:
It's usually like 10 cents more just for using credit card

If you pay \$4 a gallon and used a CC that got 3% cash back for gas, you'd be getting 12 cents a gallon, which would offset the price difference.   The gas stations here that have a difference usually keep it less than 10 cents, so it works out well for me.   However, if you don't have a CC with decent gas rewards, you could always get a gas card for the station you frequent most often; gas stations tend to charge the cash price for their own CCs.

I think aside from rewards, you're much safer using a CC at a gas pump.   If your card ever got skimmed from one of those in-pump readers, it's much better to have a CL compromised instead of a bank account.  Cash is fine, but CC is certainly faster.

Start: 619 (TU08, 9/2013) | Current: 802 (TU08, 3/13/18)
AMEX BCE \$34000 | Discover IT \$27000 | cashRewards VS \$25000 | Sam's Club MC \$25000 | Marvel MC \$25000 | Macy's AMEX \$25000 Store \$25000 | Care Credit MC \$20000 | BofA BBR #1 \$19000 | Cap 1 QS WMC \$17250 | JCP \$15000 | CashForward WMC \$14000 | Barclay Rewards WMC \$14000 | Citi DC \$12600 | Freedom VS \$12000 | Disney VS \$11500 | Cash 365 AMEX \$11000 | Cash+ VS \$10500 | WCU Visa \$10000 | BoA BBR #2 \$10000 | Uber VS \$9000 | Blispay \$7500 | Amazon VS \$7300 | Target MC \$5000 | Sony Card \$4250 | ~~Gardening Since 4/1/18
Message 7 of 40
Mega Contributor

## Re: using credit cards for gas?

sportsguy83 wrote:

I’ve wondered about this too but found its worth it if you do the math.  I guess it really depends on how much more it is to use a credit card – around here it is usually only a 10 cent/gallon difference.  So if you have a Chase Freedom (or something similar) which gets 5% two quarters out of the year it saves you more.  Let’s say you are charged an extra 10 cents/gallon for using a credit card.  If you buy 16 gallons you pay an extra \$1.60 just to use your credit card.  If gas is \$4/gallon that is \$64. 5% of that is \$3.20 – more than the extra you are paying to use your credit card. Even a card that gets only 3% back (more common) would be better by 30 cents under that scenario.

And if you use Freedom as UR points, with a transfer card, the points are worth more than 1c, so it is even more worthwhile.

Message 8 of 40
Established Contributor

## Re: using credit cards for gas?

PlasticOrPlastic wrote:

subwaysandwich wrote:
It's usually like 10 cents more just for using credit card

Theres no difference by me for paying with a card so I guess its worth it for me.  Currently gas is sitting at \$3.64 so a tank of gas earns me just under 3 bucks on my Discover or Sallie card.  Adds up fast for summer months when I feel like I'm constantly filling up.

Same way here, same price either way. It's worth it, but I only spend about \$140/month on gas

NFCU CashRewards \$13.5k | AMEX BCE \$15k | Lowes \$17k | Sportsmanss guide \$7.6k | Chase Freedom \$1k | Discover IT \$4.4k |
Walmart \$8k | Gordman's \$2950
Message 9 of 40
Established Contributor

## Re: using credit cards for gas?

Just curious where do you guys live that they charge 10 cents a gallon to use credit?  That seems insane to me....

Message 10 of 40