Stuck With Bad Credit But Need a Gas Card?

Ruined credit ratings have become normal in this economy. Gas cards for bad credit can help you begin to rebuild your credit rating. Credit card lenders who specialize in offering accounts to consumer with bad credit have come into their own in the current economic crisis.

There was a time when presenting a credit card for payment was embarrassing when the card was issued by one of the few recognized lenders who provided secured credit cards for those with bad credit scores.

Today, those lenders have come into their own and even major banks have begun offering secured credit lines to help consumers rebuild their all important credit rating.

Secured Card

A secured credit card that reports to major rating agencies is a great way to begin rebuilding your credit after bankruptcy or foreclosure. Another step you can take is to apply for a gas card.

It will take some research to find gasoline companies that accept applications from those with black marks on their credit files. The trend in credit card lending today is for major retailers, airlines and travel resorts to offer credit cards provided and managed by one of the few large financial institutions.

The same is true of gas companies and many of the brands that used to provide and manage their own consumer credit cards now outsource the supply and management to companies like Chase, Capital One and CitiBank.

If you have bad credit, you will have problems being approved for a gas credit card if you apply to a gasoline provider who uses a major bank to service credit accounts.

Highly Competitive Brands

For consumers with bad credit, gas cards are still available if you apply to brands that are highly competitive in the fuel marketplace and manage their own credit card accounts.

Some brands have small management divisions devoted to providing accounts to customers with credit challenges even though the main portion of their credit card business is provided through a large lending bank.

BP is a huge fuel provider that has suffered a loss of business, money and status with consumers due to the recent oil spill in the Gulf of Mexico.

With thousands of service stations across the country, BP has struggled in recent months to keep customers as consumers have opted not to support the fuel conglomerate as a statement of dislike for it's drilling practices.

What happens when a company is struggling to regain lost ground or desperate to attract new customers? For companies like BP, what may happen is a lowering of credit requirements that increase approval of gas cards.

The example above is the best method for finding a fuel company that will issue a gas card to consumers with bad credit. Gas companies are in a unique position to accept bad credit as the credit cards issued have a limited range of use.

You can only use the credit card at the convenience stores and gas stations of that particular fuel brand. The account limits are often quite low so the risk of loss from account holders who default is not a major obstacle.

You should be prepared to pay a high rate of interest. In this case, the APR is not a deciding factor as you can pay off fuel purchases monthly and avoid paying any interest. Some companies will also charge an annual fee for the account.

The annual fee can often be balanced if you qualify for a gas card that gives you a few cents off the price of fuel when you charge your purchase. This is a common feature of fuel company credit cards.

Summary

The most difficult part of qualifying for gas cards with bad credit is determining which fuel company is most likely to approve your application. Applying to many companies can further damage your credit file.

The best way to choose gas cards with bad credit is to call the customer service office of the company and ask what the credit requirement are to qualify for an account.

For companies that provide their own screening and management of their branded credit accounts, the account managers often have the authority to approve gas cards for consumers with bad credit (if they feel the risk is worth it).