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How Does Fuel Credit Card Work? All You Need to Know

23 March 2022
3 minutes

Fuel costs are surging day by day to record highs. As a result, it significantly affects the purchasing power of customers. Fuel credit cards can be a solution to ease the burden of high fuel costs. These are specific types of credit cards offered by several financial institutions that can be used during refuelling at partner outlets across the country. On every fuel purchase using these fuel credit cards, the user gets monetary benefits.

Eligibility Criteria for Fuel Credit Cards

The eligibility criteria for a fuel credit card are discussed below:

  • Applicants should be over 18 years of age
  • The individual should be a resident of India
  • There should be a regular income through salary or self-employment
  • In addition, income criteria set by banks should be met
  • The individual should have a high credit score, preferably above 750.

Note that the requirements vary across different credit card providers.

How to Apply for a Fuel Credit Card?

Individuals can apply for a fuel credit card online as well as offline. Let’s check out both these procedures below:

  • Online process

Individuals interested in getting a fuel credit card can visit the financial institution’s official website. They can look for the card according to their needs. After that, they need to complete the registration process, pay requisite charges, and apply for the card.

  • Offline process

Another mode of application is through a physical visit to any bank branch. An individual should carry all the documents required for the application process. The financial institution’s representative will assist you in the entire application process.

Benefits of a Fuel Credit Card

 Here are some benefits of fuel credit cards:

  • Reward points

Individuals can get gift cards and reward points by making a purchase using these cards. One can use or redeem them at specific websites or stores.

  • Cashback

The users will receive cashback every time a minimum amount is spent at different fuel stations across the country. The cashback amount is directly credited into the bank account of the user.

  • Surcharge waiver

Many banks offering this card also provide significant relief to the consumer in the form of a fuel surcharge waiver at specific partner outlets. A surcharge forms a significant portion of fuel price. So, it will be immensely beneficial even if a waiver of a small percentage is given. 

  • Annual charge waiver

The annual charges of a fuel credit card can also be waived off if the individual carries out transactions of a certain amount. Furthermore, the financial institution can increase the card limit.

  • Make bill payments

Individuals can utilise reward points and vouchers received on purchasing fuel to make specific payments like telecom bills, water bills, electricity bills, etc.

  • Discount at partner restaurants

Many fuel credit card providers also offer hefty discounts at partner restaurants. This gives cardholders an additional option to use fuel credit cards and enjoy monetary benefits.

Things to Consider before Opting for a Fuel Credit Card

Here are certain aspects you must consider to identify the best fuel credit card in India for 2022

  • Interest rate and payment pattern

As fuel credit cards will be used frequently, users should look for a card that comes with low interest rate and a favourable payment pattern.

  • Fees and charges

Credit cards come with annual card charges, processing fees, service fees, etc. Therefore, it is important to look for a card that does not levy high charges. This is because the benefits earned from cashbacks, vouchers, etc., will be negated if one pays very high charges.

  • Redemption process

The redemption process of these cards can be quite complex. Therefore, it is better to check all the terms and conditions along with the processing time before opting for a card.

Besides these, individuals should also take into account the credit limit before opting for a fuel credit card. 

Final Word 

Fuel credit cards can be helpful to consumers in the wake of rising fuel prices. However, individuals opting for such a card should manage their finances well and adhere to the repayment cycle or else it will impact their credit score.

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