‘Free petrol’ is a concept which appeals to everyone of us who drives. While petrol credit cards are sought after in order to get the best deal on filling up the tank, is it worth the expense? Credit Card Finder investigates:
As with any rewards credit card — If you ever pay interest, a rewards card is not for you. If you pay interest, you’ll likely spend more money in interest than you’ll earn in free petrol.
Petrol Credit Card Offer
The American Express Platinum Edge Credit Card offers the ability to earn 2 Membership Reward points at major petrol stations including BP, Shell, Caltex Woolworths, 7-Eleven and Woolworths Petrol.
- $195 p.a. annual fee
- 20.74% p.a. on purchases
- 0.99% p.a. for 6 months with 1% balance transfer fee on balance transfers
- 55 days interest free
- Minimum Income Requirement of $50,000 p.a.
There are range of credit cards offering reward points for spending on petrol. Listed below are some of the options available:
What types of petrol credit cards are there?
- Direct earn petrol cards
- Indirect earn petrol cards
These petrol cards earn discounts and cash back on directly on petrol purchases, without the need for a rewards program to access discounts and cash. At the time of writing, there aren’t any direct earn credit cards on the market. Citibank BP MasterCard was a popular direct earn petrol credit card when it was available.
Petrol credit cards are considered to be indirect earn when they earn reward points that need to be redeemed to claim petrol vouchers or discounts. Petrol indirect earn credit cards are therefore essentially standard-issue rewards cards that CreditCardFinder.com.au has determined has petrol that can be claimed as part of their rewards programs.
Direct earn petrol credit card
|Weekly petrol spend||Discount per year|
*based on 5% petrol discount
Indirect earn petrol credit card
|Weekly rewards card purchases||Petrol rewards value per year|
*based on 1% rewards value
As can be seen above, direct earn petrol credit cards have superior rewards value by about 4% on money spent directly on petrol. And even given the advantage general rewards cards have — with the ability to earn points on almost all purchases — direct earn petrol cards still come out on top in our reckoning. To earn $60 of petrol per year, you’d have to spend $100 more per week on an indirect petrol rewards credit card than the direct spend on petrol on a direct earn card.
How to best use petrol cards?
A top tactic to gain the maximum discount on petrol is to use your petrol credit card in conjunction with petrol discount shopper dockets where they are accepted. In effect, this enables you to claim a double discount on your petrol purchases.
How to compare petrol credit cards
- Petrol discounts
- Whether affiliate petrol stations suit
- Annual fees
- Interest rates
- Other rewards
Obviously the chief consideration when choosing a petrol credit card is the value of petrol savings using the card will lead to. Notably, Aussies should look for the highest possible discount earning per $1,000 spent
It may be a question of personal taste at this point, but if there is one petrol station you favour over others, you may only want a petrol card if you can receive discounts for that outlet. Although for some, the prospect of discounted petrol is enough to persuade people away from the petrol outlet that they’ve previously been loyal.
For many people, the prospect of getting any petrol discounts whatsoever is enough an incentive to sign up for a petrol credit card.
While petrol discounts are a consideration when choosing a petrol credit card, you also want to factor in the costs against the rewards. One such cost is annual fees. You’d want to look at your spending habits and pit the amount you are likely to be rewarded with on the card against the annual fee. If you come out on top, then happy days. But if not, it may be worth looking for a credit card with a lower annual fee.
As a general rule of thumb for credit card usage, if you carry a balance from month to month, you are better off with a low rate credit card as the interest charged on not paying a balance off in full each month will generally outweigh any rewards benefit in dollar value.
Indirect earn credit cards have the added benefits of the possibility of earning rewards outside of petrol such as other gift vouchers, merchandise, general shopping discounts and sometimes even flights.
This card offers the flexibility of the full range of rewards including Qantas Points. There is also a generous bonus points offer for new customers of 30,000 Membership Rewards points or 22,500 Qantas Points after three purchases made outside David Jones in the first month of card ownership.
With the highest reward points earn of any card on the market, for purchases at major supermarkets and petrol stations — every dollar spent will earn three points.
- 3.00 gift points per dollar at millions of places around the world.
- Two points per dollar shopping in-store at David Jones.
- Exchange gift points for David Jones Gift Cards.
- Redeem points towards BP and Caltex Gift Cards
- No points capping or expiry.
- Introductory offer of 30,000 bonus points for spending outside a David Jones store three times within the first month of receiving your Card – equates to $100 worth of David Jones Gift Cards.
Woolworths Everyday Money details:
The Woolworths Everyday Money credit card is a loyalty rewards card that has become a bit of a favourite in Australia. The idea is that you earn points wherever you shop, but you earn more points for making purchases at Woolworths group stores or partner stores.
If you have earned sufficient points, every four months you receive a shopping card that can be used in Woolworths group stores. Shopping cards are sent out in minimum values of $20, which is the equivalent of accumulating 3,448 points. After that, they increase in $5 increments (862 points). Any points that do not go towards your shopping card for the previous four months are carried over and count towards your shopping card for the next four month reward period.
To make sure you earn the maximum amount of points, you just need to use your Woolworths Everyday Money credit card whenever you make a purchase, and try to make those purchases in the stores that will reward you the most.
To top it all, there is an excellent annual fee of $49.
Key features of the Woolworths Everyday Money credit card
With the Woolworths Everyday Money credit card you get all these features:
- No annual fee for the first year, and only $49 in subsequent years
- Purchase rate of 19.84% p.a.
- Cash advance rate of 21.34% p.a.
- 55 interest-free days on purchases
- Free additional cardholder
- Chip security
- MasterCard PayPass
- Choose from four card colours: black, pink, blue and green
- 3 reward points for every dollar spent on Woolworths Select products purchased at Woolworths or Safeway Supermarkets, excluding online purchases
- 2 reward points for every dollar spent on other products purchased at Woolworths or Safeway Supermarkets, BIG W, CALTEX WOOLWORTHS/SAFEWAY co-branded fuel outlets, epump, Woolworths/Safeway Liquor, BWS, Dan Murphy’s, Thomas Dux, and participating Dick Smith and Tandy stores
- 1 reward point for every dollar spent elsewhere on other purchases
- Pay at the pump with your Woolworths Credit Card at participating CALTEX WOOLWORTHS/SAFEWAY co-branded fuel outlets and earn 2 points for every dollar you spend using epump
Applying for the Woolworths Everyday Money credit card will take you just 10 to 15 minutes. You will need:
- Personal details, including driver’s licence number
- Contact details, including address, phone numbers and email address
- Employment details, including time in current job
- Details of income and expenditure
You must also satisfy some basic criteria, namely:
- You must be over 18 years of age
- You must have a good credit rating
- You must be a permanent Australian resident
- You must earn a minimum taxable annual income of $20,000
TheColes Rewards MasterCard is a generous credit card with a great package of value features.
Enjoy up to 62 days interest-free on your purchases, giving you even more time than the usual 44-55 days to settle your bill in full and thus avoid interest charges.
Another benefit of the Coles Rewards MasterCard is the rewards. Customers can earn 5 cents per litre and 10 cents per litre gift cards and can also redeem $100 prepaid Visa cards.
Key features of the Coles Rewards MasterCard
- $49 annual fee
- Up to 62 days interest-free
- Regular savings on fuel – Just follow 4 simple steps to save 8 cents per litre on fuel
- Earn more flybuys points – Earn 2 flybuys points for every $5 spent on your linked Coles MasterCard at Coles stores, and also receive your standard flybuys points at participating outlets when you present your flybuys card when you make your purchase
- Enjoy special shopping offers and invitations to shopping events
- 19.99% p.a. interest on purchases
- 19.99% p.a. interest on cash advances
If the Coles Rewards MasterCard sounds attractive — and why wouldn’t it with such features — then why not apply today?