It is so bothersome trying to deal with expensive gas prices. Unfortunately, this is the reality for many people across Nordic Europe and some other parts of the world. For instance, Norwegians had to pay almost double what Americans were paying while many Americans were complaining about gas prices reaching 5 dollars/gallon.
The irony is that Norway is conveniently one of the largest natural gas producers in Europe. For more information on countries that are most hit by expensive gas prices, you can visit: https://www.globalpetrolprices.com/.
This goes to show how hard dealing with anything that runs on gas can be. The truth is that almost every commodity is affected. This is as the price of almost every commodity is inflated when there is a rise in its cost. For this reason, people need to consider ways to alleviate the expense. Searching or applying for fuel credit cards (Søk Bensinkort Kredittkort) is one of the ways people go about this.
It can be a wise decision considering how certain redeemed rewards can help subsidize the cost. However, the decision to get such should be well-informed. There is perhaps no better way to do this than to understand the general pros and cons of getting a bensin kort (fuel credit card).
This is the right piece to be reading if this is your goal. The common benefits and downsides of this credit card will be discussed here.
Pros of Fuel Credit Cards
The decision to secure one can be a wise one. This is because of the several benefits that come with making your gas purchases with it. Some of these benefits include the following:
Rewards for Fuel Purchase
A lot of them offer rewards for usage. For instance, this can be cashback. By and large, these rewards can help subsidize the cost of buying fuel. As a result, your expenses will be reduced.
Several other benefits come with taking out this card. However, this is perhaps the most important of them all. The reason is because of the cost-saving impact of the reward offered by the credit card company.
As a result, you should be mindful of how generous a credit card company is before deciding to get their card. This is an important tip for getting the right one.
It Is Convenient
A country like Norway has made a good name for itself as a cashless-driven economy. It is one of the world’s most highly rated countries in this regard. The willingness of its people and other parties to utilize this payment method and other cashless solutions is one of the reasons for this.
The advantage here is that it is very convenient. For instance, someone who can afford the cost of fuel may realize that he/she does not have sufficient cash for this transaction. Fortunately, this is not going to be an issue with fuel credit cards. This is as long as you have access to that much line of credit.
There Could be Additional Benefits
They are mainly designed to help with fuel purchases. In the same vein, most of the rewards that are offered have to do with such purchases. However, there could be other perks besides this.
A couple of companies that offer this financial service are known to do this. For instance, some credit cards offer additional benefits such as travel insurance coverage, and roadside assistance. Some even go as far as offering extended warranties on purchased products.
All these add to the main value that comes with securing and using these sorts of cards. It could be a good reason to consider getting them. However, this also calls for careful selection. The reason is that you are not going to get all of these additional perks with every option out there. So, make sure that you get one that offers this much.
Large Acceptance
These cards have a wide acceptance in gas stations. This is particularly in countries like Norway which boasts of successfully running a cashless economy. However, this also calls for careful selection. The reason is that some options have wider acceptance than others.
You do not want to show up at a gas station and realize that your card is not accepted there. So, research options that have wide acceptance before making your choice.
Easy to Track Spending and Budget with It
You can easily monitor how much money goes into gas purchases and any other purchases made using it. Budgeting is a lot easier with such information. So, this enables you to set limits besides tracking and analyzing where your money goes.
It is Possible to Build Your Credit History
To build your credit score and history with bensin kort (fuel credit card), there are two major requirements. It is about consistent and responsible usage. Consistent usage is important for this purpose. However, responsible use of this payment solution is more important.
So, you should be mindful of how you manage the card. For instance, your payments should not be late. Failure to do so can negatively impact your credit score and history. This can greatly reduce your chances of getting fair deals when negotiating a loan with a financial institution.
This could equally affect you in other ways. It is why you should take proper usage of your fuel credit card seriously.
Drawbacks of Fuel Credit Cards
Knowledge of the drawbacks is also required for making informed decisions on fuel credit cards. In light of this, this part of the article will shed light on this subject.
You should know that some of these drawbacks are general. On the other hand, some of them are specific to select cards. This stresses the need to make the right choice if/when you decide to secure a fuel credit card. Having made these clear, here are some of the drawbacks of all or some of these fuel credit cards:
Limited Use of Its Payment Solution
These payment solutions are mainly designed to pay for fuel purchases. Some of them offer payment solutions for other purchases. But by and large, its use as a payment solution is limited.
Furthermore, some gas stations may not even accept certain cards. This further proves how limited its spending features can be. As a result, you need to ensure that you get something that is widely accepted as a payment solution.
Cost May Outweigh Benefits
Some of them come at a huge cost. One such is the need to pay annual fees. Also, some credit card companies insist on high-interest rates. This is especially for cardholders with a bad credit score or history. Using Norway as an example, the cost of using this card can run into tens of Norwegian krone.
In some cases, it turns out that its entire purchase and operating cost is more than the benefits that cardholders get from using it. This is why prospective cardholders need to adequately research the cost of a card before deciding to secure it. Failure to do this could lead to serious debt accumulation.
Limited Ways of Redeeming Rewards
The possibility of getting several perks is one of the reasons many people consider having it. However, there are not too many ways to redeem the rewards it offers.
For example, some cardholders have complained that their rewards are only valid at specific gas stations. In some cases, this makes using certain cards as good as worthless. So, this information should play a huge part in your choice. This is the choice of either getting a credit card or the one to choose (if you decide to get one).
It Could Hurt Your Credit Score
For the record, there is no mix-up here. This is considering how one of the pros discussed the possibility of building your credit score with this card.
Some people have gone on to damage or further damage their credit rating with this card. This is as a result of bad management. For instance, their failure to make payments on time makes their credit history look bad and the penalties keep affecting their rating.
Monitoring your spending and budgeting is indeed easy with this card. But even at that, some cardholders find it hard to control the urge to make impulse purchases. It takes a lot of discipline to make good use of it. In other words, you must be very committed to using it properly to avoid cases of overspending.
Consistency and (more importantly) responsible use is required as mentioned early on. You can read this article for proven tips on how to use a credit card responsibly.
Also Read: Invest Smart: Key Points to Consider If You’re Planning to Buy or Sell Property
Conclusion
Your decision to get this kind of credit card or any other kind must be well informed. Having the right information is essential for making the right decision. As a result, this article has presented some of the common benefits and drawbacks of this kind of credit card.
You are to make an educated decision having been presented with all these details. To make the right decision, you should be certain that the credit card’s cost is worth it and that you are disciplined enough to use it.