Increasing use of credit cards has been recorded in India, with numbers from last year indicating the addition of 10.1 million cards in a span of 1 year. The total amount of money transacted via this line of credit through this period amounted to Rs.59,616, which was a rise of 24.8%. This increased use of credit cards indicates their growing popularity amongst Indians, in turn also prompting several financial institutions to come up with other lucrative offers.
One such major offering is that of a fuel credit card. As suggested by its name, this payment tool is used specifically for fuel purchase and offers multiple financial benefits on the same. Users considering acquiring such a card should note both these benefits, as well as prevalent risks to ensure their transactions are safe and benefits maximized with the usage.
- Fuel card offers: Credit cards, which are specialized for fuel purchase, offer additional discounts and rebates when used at gas stations. However, it is vital for users to note all the terms and conditions since these cards typically offer higher discounts when used at partner stores, allowing saving considerably in the long run.
- Avail rewards and cash backs: Like any other credit card, fuel cards also offer reward points that can be redeemed for gifts, discounts, and cash backs. Interestingly, it also offers an additional feature of purchasing fuel using these points. Users must, therefore, learn how to redeem their credit card reward points properly.
- Check surcharge waivers: Users should avail credit cards that offer a surcharge waiver since these cards reduce the total expenditure by a remarkable sum. Typically levied on every transaction through a card, few financial institutions waive these charges once an individual reaches his/her quota of minimum usage. Availing this feature on a fuel credit card can immensely reduce a user’s financial burden.
- Beware of skimming: A vital aspect that every user of a credit card must be cautious about is that of security of his/her credit account. Malpractices including identity theft and fake transactions are rampant, thereby prompting users to learn of different ways to protect their credit card from being hacked. To this effect, users should try using their card at known gas stations and also check the device before swiping.
- Look for sign-up bonuses: Some financial institutions offer sign-up bonuses on their fuel credit cards. These are stipulated card usage amounts which unlock additional features and rewards. Customers should try to make the most of this bonus since it often reduces their financial burden by a significant margin.
While some of the above features are specific to fuel cards, most are relevant for conventional credit cards too. Individuals using the Bajaj Finserv RBL Bank SuperCard and its likes should also note offered rewards, avoid late fees, and be aware of skimming.
Users with such cards can also avail of extensive discounts and rewards on the purchase of fuel, as well as other necessities. Consequently, it is advisable to choose a card based on spending habits, since fuel credit cards do not offer as much discount as its conventional counterparts on other purchases.
Additionally, the illustrated financial institution here also provides pre-approved offers on such cards, making their application procedure convenient and easy. These offers are also provided on many other lines of credit like personal loans and business loans, among other financial products. Check your pre-approved offer only with the help of your name and phone number.
While there are numerous credit card features that reduce an individual’s financial burden, it is important to note that late payment of bills leads to penalty charge levy. While in the case of secured cards like cards against FD, financial institutions directly deduct this sum from a user’s fixed deposit account; in case of unsecured cards, a hefty penalty is levied. It can be at a flat rate, or as an interest. If an individual is unable to clear his/her full bill amount, they should at least clear their minimum due to avoid such a penalty.