Similar to department store credit cards, gas credit cards are often the first choice for consumers looking to build their credit reports. The credit limits are fairly low, the interest rates can be high, and cardholders are limited in what they can buy. However, gas credit cards don’t have very many credit criteria, which is why so many applicants are able to get approved.
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Gas credit cards are issued to both business owners and consumers that want to keep precise records of how much they spend on gas. Many gas station branded credit cards give users additional rewards points, which can be used to get free gas once enough points have accumulated.
Applying for a gas credit card should not be difficult if you request a modest credit limit and have no recent delinquencies. Not all consumers are qualified for a gas credit card or any other line of credit, so there is no way to say for sure if these particular types of credit cards are easy to be approved for.
Prepaid Gas Credit Cards and Revolving Lines of Credit
Like other prepaid credit and debit cards, prepaid gas credit cards have no qualification criteria. You can load money onto a prepaid gas credit card at any authorized retailer, and you may or may not have to pay a fee.
If you don’t really want to apply for any additional lines of revolving credit, the prepaid gas credit card is the best choice.
The Wall Street Journal reports that more exclusive credit card issuers are trying out prepaid versions of their most popular cards. While there are still fees that are applicable on many prepaid credit cards, consumers can avoid paying what sometimes amounts to exorbitant interest charges.
An unsecured gas credit card might be a good idea if you intend to add on authorized users so that your entire household can finance gas purchases. Business owners also favor gas credit cards when they want to limit employee spending and keep a close eye on their costs. You should only apply for a gas credit card if you have fair credit history and a legitimate need for a new credit card.
Requirements for Business Gas Credit Card Applicants
If you are trying to improve your credit score, diversify your credit file, or build history, a gas credit card is both practical and useful. Applicants need to be at least 18 years of age to apply for unsecured gas credit cards in their names alone. Any applicant under 18 will need to apply with a creditworthy adult, per the new set of credit card rules implemented by the Federal Reserve.
Each individual gas credit card company has its own limitations and restrictions on who can be approved, which is why you will need to inquire about credit card qualifications prior to submitting your application. Business owners will need to have at least two years of tax returns available in order to be approved for virtually any gas credit card. Business credit reports can easily be built and repaired, so if you are a company owner, make sure that you have credit history for your business.
Gas Credit Cards vs. Gas Rewards Credit Cards
Credit cards backed by gas station chains may only be used to purchase gas, and in some cases, related services and items sold at fuel pumps. By contrast, gas rewards credit cards only have credit line limitations. You can use a gas rewards credit card to make purchases on the web or at local retailers to get rewards points that can be transferred into free gallons of gas.
Both gas rewards credit cards and gas credit cards can be discontinued at anytime.
Prepaid gas credit cards will be refunded if you decide to close your account. Gas credit cards may sometimes be attached to membership rewards cards, which allow consumers to qualify for discounts on fuel and other essentials.
Technically, no credit card is easy to be approved for. You have to submit the right paperwork, have a steady financial outlook, and have a solid track record that indicates that you pay your obligations on time. Try to find a gas credit card that has the most incentives, the best APR and enough local outlets to make it worth your while. Gas credit card accounts are normally reported to the credit bureau, so consider this when you apply.
To review a complete listing of gas credit card issuers, visit the FREE credit card finder!
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