Do you find yourself spending a lot of money on gas every month? If so, you may want to consider getting a gas credit card to help you save some money. But with so many options available, how do you know which one is the best for you?
In this article, I’ll explore the top gas credit cards available in Canada and compare their benefits and drawbacks. By the end of this article, you’ll better understand which card is the best fit for your lifestyle and spending habits.
Whether you’re a frequent road tripper or need to fill up your tank every week, there’s a gas credit card out there that can help you save money. So let’s dive in and find the best one for you!
What are the Benefits of a Gas Credit Card?
Gas credit cards, or fuel credit cards, can offer several benefits to consumers, particularly those who frequently purchase gasoline or other items at gas stations. Here are a few potential benefits:
Cashback or Points on Gas Purchases
Gas credit cards often offer cash back, points, or miles for every dollar spent on gas. This can range from a small percentage to a substantial fraction of the cost. This is particularly beneficial for those who drive frequently or have long commutes.
Some gas credit cards also offer additional rewards on other spending categories, such as groceries, dining, or travel. These extra rewards can make a gas credit card more versatile and valuable.
Discounts at Specific Gas Stations
If the gas credit card is branded with a specific gas station chain, it might offer extra discounts or benefits when you fill up at that chain. This can be a great deal if you live or work near that chain’s gas stations.
Many credit cards, including gas credit cards, offer introductory bonuses or offers. These can include things like a large bonus of points or cash back after spending a certain amount in the first few months or a period of 0% interest.
Convenience and Tracking
Using a gas credit card can make it easier to track your fuel expenses separately from other spending. This could be useful for budgeting purposes or businesses tracking vehicle expenses.
As with any credit card, it’s essential to be mindful of the terms and conditions, including any interest rates and fees. In addition, it would be best to consider your spending habits and needs when deciding whether a gas credit card is right for you. For instance, if you don’t drive very much, the benefits of a gas credit card might not outweigh the potential costs.
What are the Best Credit Cards for Gas in Canada?
Here are what we think are the best credit cards in Canada for gas purchases. As you can see, we focus on cards with the highest cash-back rate on gas purchases, up to 4%! While we recommend looking at the best cashback credit cards that can save you a lot of fuel.
Here are the top credit cards for gas in Canada.
BMO Eclipse Visa Infinite Card
This card offers 5 points for every dollar spent on gas, groceries, dining, and transit, and 1 point on all other purchases. Its annual fee is $120, but it’s waived in the first year.
CIBC Aeroplan Visa Infinite Card
This card gives 1.5 points for every dollar spent on gas, groceries, and Air Canada purchases and 1 point on all other purchases. It has an annual fee of $139, which is also waived in the first year.
CIBC Dividend Visa Infinite Card
This card provides 4% cash back on gas and groceries, 2% on transportation, dining, and recurring bills, and 1% on all other purchases. It comes with an annual fee of $120, waived in the first year.
TD Cash Back Visa Infinite Card
This card earns 3% cash back on groceries, gas, and monthly bills and 1% on other purchases. Its annual fee is $120, waived in the first year.
BMO CashBack World Elite Mastercard
This card offers 5% cash back on groceries, 4% on transit, 3% on gas, 2% on recurring bills, and 1% on all other purchases. It has an annual fee of $120, which is waived in the first year.
CIBC Dividend Platinum Visa Card
This card provides 3% cash back on gas and groceries, 2% on dining, transportation, and monthly bills, and 1% on all other purchases. It has an annual fee of 99, which is waived in the first year. This card only requires a minimum annual income of 15,000.
Remember, the best card for you will depend on your specific circumstances and needs, such as your spending habits, your income, and whether you prefer points or cash back as rewards. We recommend considering these factors and possibly consulting with a financial advisor to decide which card is best for you.
How Do I Earn the Most Rewards on Gas Purchases?
Here are some general strategies that can help you maximize cashback or reward points for gas purchases in Canada. Remember that the exact benefits depend on individual providers and offerings, and they may change over time, so it’s essential always to read the fine print and keep up to date with your cardholder agreements and the latest promotions.
Many credit cards offer cashback or rewards points for specific categories, including gas.
Gas Station Loyalty Cards
Many gas stations offer their own loyalty programs, which can often be linked with other rewards programs.
For instance, Esso and Mobil offer the PC Optimum program, where you can earn points and redeem them at Esso and Mobil stations, as well as at Loblaw’s grocery store locations and Shoppers Drug Mart.
Petro-Canada offers the Petro-Points program can earn you points on fuel purchases, car washes, and more.
Store-Brand Credit Cards
Some gas station chains offer store-branded credit cards that offer rewards on all purchases, with extra bonuses for purchases made at their locations.
Grocery Store Programs
Some grocery stores offer fuel rewards programs that allow you to earn discounts on gas for shopping at their store or using their branded credit card.
In many cases, you can use a gas station loyalty card and a credit card together to earn rewards twice on a single purchase – once from the credit card and once from the loyalty program.
Keep an eye on limited-time promotions offered by credit card companies, loyalty programs, and gas stations. These can often provide opportunities to earn extra rewards.
Remember, paying your credit card bill in full each month is important to avoid interest charges, as these could outweigh any benefits received from rewards. Also, each program has its terms and conditions, so be sure to understand them before you start earning and redeeming points.
Cashback vs Rewards on Gas Purchases:
The best credit cards in Canada pay points you can redeem for travel rewards, but with the best fuel cards, you get real money back at the pump, which is especially valuable when driving is part of your daily routine.
Cashback is a type of reward where a percentage of the amount spent is paid back to the cardholder. It’s a straightforward way to receive benefits from your credit card. When you make eligible purchases, a small percentage (usually between 1-5%, depending on the card and the type of purchase) is returned to you.
Redeemable Rewards Points:
Rewards points are a little more complex. When you make purchases using a rewards card, you earn points. The number of points you earn per dollar spent depends on the terms of your card – some offer one point per dollar, while others might provide more. You might want to check out the Best Canadian Travel Credit Cards.
Comparing the two, cashback is more straightforward but potentially less flexible. You get your money back, and that’s it. Rewards points can be more flexible – you can choose from various rewards – but they can also be more complicated, as you need to navigate the rewards catalogue and potentially deal with blackout dates for travel, varying point values, and other restrictions.
What Gas Rewards Card Will You Choose?
In conclusion, the suitable gas rewards card for you depends on your personal needs, spending habits, and preferred gas stations. When deciding on the best credit card for gas in Canada, you should consider the rewards structure of each card, the earning and redemption flexibility, and any potential bonuses, alongside annual fees and other card benefits.
If your main goal is simplicity and you prefer a straightforward return on your gas purchases, a cashback card offering high percentages for fuel might be the best choice. Alternatively, if you’re interested in more flexible rewards, like travel, merchandise, or gift cards, a card that offers rewards points could be a better fit.
Remember to consider loyalty programs from your favourite gas stations, as these can often be used in conjunction with a credit card to maximize your returns. And don’t forget that you can usually stack rewards, using both a gas station loyalty card and a credit card, to earn double rewards on your purchases. Check out Koho Visa Canada Review as well.
The landscape of gas rewards cards in Canada is competitive and constantly changing, so keep an eye out for limited-time promotions and new card offerings. You can earn the most from your gas purchases by carefully considering your options and aligning them with your lifestyle.
Ultimately, the best gas rewards card in Canada is the one that fits seamlessly into your lifestyle and spending habits, helping you save money and reap benefits from the everyday necessity of fueling up. So, take the time to assess the cards available, consider your options, and choose the card that will work hardest for you. Safe travels and happy savings!