The lagging economy has led to bad credit for many people who used to pride themselves on their financial responsibility.
Rising unemployment has led many to deplete their savings and investments to pay monthly bills. At the same time, the cost of fuel has risen and filling up your gas tank is now a big expense.
If you live from paycheck to paycheck as many people do, one or two weeks of lost income can be enough to ruin your budget and lower your important credit score. You may think there is nothing you can do except pay cash for everything you buy but you would be wrong.
It is possible to repair your credit by adding positive credit even if you can’t qualify for a new card. Remmeber, gas company credit cards are the easiest credit accounts to qualify for.
Why Fuel Cards Are Easier to Qualify For
Major gas companies offer their own credit cards. These cards are provided by major credit companies such as Chase and CitiBank but have lower qualification standards.
Fuel companies are highly competitive and they know a consumer choosing between two gas stations to add fuel to his car may choose the stations where he can use a credit card.
Purchasing gas is no longer an incidental expense. You have to think before filling up the tank. Do you have enough cash with you or do you need to drive by the ATM for money before visiting the gas station.
Why Fuel Companies Prefer Customers to Have a Credit Card
If you are driving home from work and notice your fuel gauge is pointing to empty, what do you do? If you are like most people without credit cards, you look in your wallet to see how much cash you have with you.
If you have only $10 or $20, you will buy only a few gallons of gas today. You know you will need to stop again tomorrow or the next day for more fuel after you get more cash.
The fuel company knows you may stop at a different filling station tomorrow or the next day. What would you do if you had an almost empty gas tank and an Amoco card in your wallet? You would find the nearest Amoco station and fill up the tank with $50-60 of fuel today.
Why Fuel Companies Are Willing To Accept Bad Credit
Fuel companies want your business every time you buy gas. You will be billed monthly and will have the option of paying the bill in full or paying it as a monthly payment if you choose.
There is little forgiveness by fuel companies for those who do not pay their credit cards on time. If the payment is a day late you will not be able to charge another gas purchase to that card until you have paid the bill.
If you are late in paying the bill several times, the card will be cancelled rather quickly. Even though you will be expected to pay the amount due if the account is closed, the fuel company will report the closing to the credit rating agencies which adds another negative on your credit file.
Conclusion
If you are stuck with bad credit, I’d advise you to choose a fuel company with multiple locations in your area for convenience.
Use the internet to compare offers and interest rates and apply for a fuel card offered by the gas company only for its customers.
I would also like to recommend you to read further and explore our guide on how to research and find the best reward program for your needs.
