With petrol and diesel prices witnessing an upward trend, fuel costs can strain the monthly budget for many households. A practical solution to ease this financial burden is fuel credit cards. Unlike regular credit cards, these offer maximum savings, specifically on fuel expenditures and daily necessities.
This article will guide readers through how fuel cards provide value, key aspects to evaluate before applying for one, and innovative tips for choosing the optimal fuel card for their spending behaviour.
Why Choose a Fuel Credit Card?
Fuel credit cards are designed to maximise savings on fuel purchases and everyday spending on other categories. Some significant advantages include:
- Save on Fuel Costs: These cards offer substantial cashback, accelerated rewards, or discounts on fuel purchases. For instance, IDFC FIRST Bank’s fuel credit card provides up to 5% cashback on fuel transactions, helping cushion the impact of rising petrol prices.
- Welcome Benefits: Lucrative welcome offers, such as ₹ 2,250 cashback on fuel purchases within 60 days, make these cards attractive.
- Additional Rewards: In addition to fuel savings, these cards provide additional rewards for spending on groceries, utility payments, and online shopping, allowing you to save across categories.
- Convenience Features: Fuel cards bundle useful add-ons like zero lost card liability, personal accident cover, and free roadside assistance for car breakdowns or emergencies.
Features to Look for in a Fuel Credit Card
When comparing fuel credit cards, key aspects to evaluate include:
- High Cash Back/Rewards on Fuel: Opt for cards offering maximum savings on fuel transactions through accelerated cashback or reward points.
- Low or No Annual Fees: Choose cards with minimal or no annual fees. Some have yearly spending thresholds upon crossing, at which point the fee gets waived.
- Savings on Non-Fuel Categories: Check for additional savings on daily spending, such as groceries, bill payments, retail, and entertainment.
- Interest-free Periods: A grace period of up to 50 days allows you to repay without incurring interest charges.
- UPI Integration: Modern fuel cards like IDFC FIRST Bank enable transactions via UPI in addition to card payments.
How Fuel Credit Cards Work
Fuel credit cards work like regular cards but provide customised benefits to reduce petrol and diesel expenses. Here is how they enable savings:
- Reward Points: You earn accelerated rewards on every fuel purchase, which you can later redeem for cash back or gift vouchers.
- Cashback on Fuel: Some cards offer instant percentage cashback on fuel transactions, which is reflected as a discount at the payment counter.
For significant purchases or bulk fuel payments, consider using an EMI card to spread out costs over time, making it easier to manage your budget without compromising your monthly finances.
Choosing the Right Fuel Credit Card
With multiple fuel cards in the market, pick one aligned with your spending behaviour by considering the following:
1. Analyse Fuel Expenses
Estimate your average monthly fuel bills. Higher expenses strongly suggest a petrol credit card with high cashback and rewards.
2. Compare Card Features
Review and compare parameters like fees, interest rates, rewards, and partner fuel stations across cards like IDFC FIRST Bank variants to pick the optimal one.
3. Eligibility and Fees
Check eligibility criteria related to income, credit score, etc. Also, annual fees and applicable waiver thresholds should be evaluated.
4. Partner Fuel Outlets
Check if your preferred fuel company accepts the card to maximise your savings whenever you refuel.
Conclusion
Fuel credit cards can unlock substantial savings on rising fuel costs and other daily expenses for Indian consumers.
By analysing monthly fuel bills and comparing partner fuel outlets, fees, interest rates, and rewards across different variants, one can determine the most suitable fuel card to optimise one’s budget.