Fuel credit cards are widely available to users, and provide benefits like the redemption of “turbo” points against fuel charges. Rewards earned when you spend using a fuel credit card can be redeemed for other merchandise as well. When you use a credit card that is specifically related to fuel-based purchases, the 2.5% fuel surcharge is typically waived off. You can also avail a percentage of cashback (usually at 2.5%) on transactions that are fuel-linked at various outlets.
Fluctuating fuel prices affect people, not just in India, but on a global scale. This has made it necessary to save on fuel whenever (and wherever) possible. Several banks and financial institutions offer fuel credit cards. These are regular credit cards that offer you the advantage of having a credit line of 45 days (from your first purchase).
Offering you the benefit of the “buy when you want and pay later” option, fuel credit cards specifically let you save on fuel charges. Credit card benefits remain the same as any other credit cards you may use, such as a line of credit, rewards and cashback offer with specific purchases, permitted use at ATMs and EMI facilities. Nonetheless, particular advantages are tied in with fuel-related expenses. If you use your vehicle a lot and wish to save substantially on your fuel, then fuel cards would benefit you significantly.
The Advantages of Fuel Credit Cards
While credit card use isn’t as widespread in India as it is in some western nations like the United States, where 32 out of 100 people use credit cards, the trend is catching on fast. In India, approximately 4 out of 100 people use credit cards. The use of plastic has risen from the time of demonetization and has been encouraged by the pandemic, with contactless payments trending. Furthermore, credit card benefits have a lot to do with the convenience of use and afford transparency in financial transactions.
The Reserve Bank of India has pushed banks and financial companies to boost credit card use, offering schemes and plans for customized use. Credit cards offer a lot in terms of savings on commodities, and with fuel prices in India only surging, a fuel credit card can help you save more.
Most people across segments of society and income groups, own at least one vehicle in India. For a lot of average salaried individuals, investing in a vehicle is an achievement. Fuel prices rising has become a concern, and a credit card offering long-term savings and offers on fuel expenses can wipe away some concerns of vehicle owners.
For instance, the annual fee of many of these credit cards ranges from zero to 1,000 INR, along with interest rates from 3.20% to 3.40% per month. Besides the benefits fuel cards provide for your fuel costs, they make a range of offers available on other goods and services, from entertainment to shopping. The other attraction for users is that joining fees on many fuel credit cards are nil.
The Best Fuel Credit Cards in 2021
There are some valuable perks that you get with a fuel credit card. Here are a few top-of-the-line cards you can avail of in 2021.
- Bajaj Finserv RBL Bank Supercard – With this versatile multipurpose payment tool, you get a host of benefits, like rewards points when you pay for fuel. You get 20,000 rewards points as a welcome gift, and these accumulate every month, so you can exchange them for cash and pay for fuel-related charges. If you opt for the Bajaj Finserv Platinum Plus SuperCard, you are empowered with privileges such as fuel surcharge waivers and exclusive fuel-linked rewards schemes.
- Kotak Royale Signature Card – The fantastic benefit of this credit card is that you get 4 times the rewards on every 150 INR spent. For the first year, fees are nil, and from the second, you get 999 INR waived off if your annual spending amounts to a lakh. You get fuel surcharge waivers, railway surcharge waivers on bookings, plus great rewards while dining out and while booking air tickets.
- HDFC Bank Moneyback Card – As a joining gift, you get 500 reward points. You get a complete fuel surcharge waiver of up to spends of 250 INR or over per billing cycle.
- IndianOil Citi Platinum Card – You get excellent credit card benefits with this card. If you spend on fuel at IndianOil pumps, you get 4 turbo points for every 150 INR spent. At supermarkets and grocery outlets, you can get 2 turbo points for every 150 INR spent. A turbo point = 1 INR worth of fuel. In the first year, 1,000 INR annual fees is waived off on annual spending of 30,000 INR on the card. This is true for the second year as well.
- ICICI Bank HPCL Coral Card – Popular for its cashback advantages, you get more rewards and fuel surcharge waivers if you use it at HPCL outlets. You get 5 payback points per 100 INR spent at HPCL pumps and get 500 INR worth of fuel when you redeem 2,000 points. Additionally, you can avail discounts when you book tickets on BookMyShow.