Benefits of Credit Card for Gas & Airline Miles
4 Min Read | Published: August 15, 2023
Choosing between a gas card or an airline miles reward card can be simple for some and challenging for others. Here are the benefits of each to aid your decision.
At-A-Glance
- If you drive or fly a lot, gas and airline miles credit cards can save you money and may give you other handy perks.
- Gas credit cards maximize your gas savings, while airline credit cards earn you air miles towards flights.
- You may benefit from having both.
Do you drive a lot, fly frequently, or do both? If so, then gas credit cards and airline miles credit cards may help you save money—and could give you other useful perks as well.
Gas credit cards and airline miles credit cards are types of rewards cards—as you make eligible purchases, you earn rewards, such as cash back or miles. But they generally offer very different benefits. With gas credit cards, the rewards are generally gas discounts or cash back; with airline credit cards, the most common rewards are air miles that can be redeemed for flights.
But once you start examining the options, the picture gets more complicated. Within both broad categories, there is a variety of options with different rewards and fees structures. So it makes sense to think carefully about your travel or commuting patterns to see which card would meet your needs. You may benefit from having both types.
Benefits of Gas Credit Cards
Gas credit cards help to cut the amount you spend on gas each month by providing discounts or cash back on gas purchases.
Broadly speaking, there are two main types of gas credit card:
- Gas station credit cards
- General rewards credit cards
There are also gas station loyalty cards, which aren’t exactly credit cards, but can help you to save money at the pump. These cards are a bit like store cards: you can only use them to make purchases at a specific gas station brand. You generally get discounts from 3 cents to 10 cents per gallon, depending on the card. Some loyalty cards may offer discounts on merchandise instead.
Gas station credit cards are co-branded by a gas station brand and a credit card company. Purchases that are made at the branded gas station earn you discounts on gas from the gas station brand.
General rewards credit cards offer the greatest flexibility because they aren’t associated with any gas station brand (this is the approach American Express offers, along with some other card providers). You generally earn cash back or points on all eligible purchases, not just gas. Depending on the credit card, you may get higher rewards for spending in specific categories such as travel, supermarkets, or purchases at any brand of gas station. Some credit cards offer 2% or 3% cash back when you buy gas, for example. If gas costs $4.00 per gallon, that could translate into .08 to .12 cents back for every gallon you buy.
Why Consider a Gas Credit Card?
There are several reasons why you may want to consider getting a gas credit card:
- You drive a lot and want to cut your gas spending. Gas credit cards may offer bigger discounts on gas purchases than other types of credit card.
- You prefer a specific brand of gas.
- Some branded gas station credit cards may have no annual fees.
- If your credit history is less-than-stellar, branded gas station credit cards may be easier to get than other types of rewards credit card.
- Some gas credit cards provide other benefits like car rental insurance.
Benefits of Airline Miles Credit Cards
Airline rewards credit cards are co-branded by an airline and a credit card company. You can use them to make purchases anywhere the credit card network is accepted. When you make eligible purchases with the card, you’ll usually earn miles. You can then redeem the air miles for flights, seat upgrades or other benefits, depending on the rewards program the card offers. Most airline miles credit cards come with an annual fee, although in some cases, it may be waived for the first year.1
Earning air miles: Airline miles credit cards allow you to earn miles for every dollar you spend on eligible purchases. Usually, you can earn more miles when you purchase in specific bonus categories, but this will depend on the card in question. Your miles may be able to be redeemed for purchases made with the partner airline, or in specific categories, and you may have options to redeem them in other ways as well. However, in most cases, the value of your miles will be higher if you redeem them through the partner airline. Some cards also offer introductory bonuses that can reach tens of thousands of miles if you spend several thousand dollars in the first few months of having the card.
Redeeming airline miles towards flights: The biggest attraction of airline miles credit cards is the ability to earn air miles that you can redeem for flights with the airline or its partners. In the past, airlines generally charged a fixed rate in air miles for these award flights—say, 10,000 or 15,000 miles for an economy-class domestic flight. But many airlines are switching to “dynamic” pricing—the number of miles you need for an award flight will vary depending on the cash price of the ticket, which is determined by factors such as seat availability. As a rough guide, experts estimate that the points or miles in many airline programs are now worth between 0.5 cents to over 3 cents each, but the value will change depending on the credit card issuer, rewards program, and how the points or miles are redeemed.2 You may also be able to use airline miles to buy upgrades and vacation packages from the airline. There are a number of ways that you can maximize the value of your miles, or points, and get the most out of them.
Additional benefits of airline miles credit cards: Some airline miles cards come with a set of other built-in benefits, such as:
- Free checked bags (though there may be some limitations)
- No foreign transaction fees for purchases made abroad
- Priority boarding
- Discounts on in-flight purchases
- Certain types of car rental insurance
- Low-priced access to airport lounges offering snacks, drinks and Wi-F
Premium airline miles credit cards: Some airlines and credit card companies offer premium tiers of cards with higher levels of benefits for a higher annual fee. These benefits may include:
- A free or low-cost companion ticket for a domestic round-trip flight
- Additional bonus miles when you sign up or renew
- Access to airport lounges
Why Consider an Airline Miles Credit Card?
You may want to consider getting an airline miles credit card if you:
- Fly a lot
- Tend to fly with the same airline or its partners
- Like the idea of flying for free
- Want perks such as airport lounge access and priority boarding
- Feel the benefits outweigh the annual fee
A branded airline credit card could make sense if you tend to travel with one airline. However, if you tend to travel with different airlines, then a more general rewards card could be a better option to consider.
The Takeaway
Gas credit cards and airline miles credit cards generally offer very different benefits. If you drive a lot, a gas credit card may make sense; if you like to fly, you might think about an airline miles credit card. There are various credit card options within each category, so it makes sense to look closely at your travel patterns and see which card best suits your needs. You may benefit from having both types of credit card, or in some cases, choosing a general rewards card that offers rewards for both gas and airline purchases.
1 “Best Airline Credit Cards,” U.S. News & World Report
2 “How much are points and miles worth in 2023?,” Bankrate
Mike Faden has covered business and technology issues for more than 30 years as a writer, consultant, and analyst for media brands, market-research firms, startups and established corporations.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
Related Articles
Comparing the Best Travel and Hotel Credit Cards
Should you get a general-purpose travel credit card or hotel credit card? The key difference comes when you need to redeem those rewards. Explore which is the best credit card for your next trip.
How Do Gas Credit Cards Work?
Gas credit cards offer many benefits, but how are they different from other credit cards? Find out if gas credit cards are the best choice for you.
How to Maximize Your Travel Points Credit Cards
Get the most out of your travel points credit cards, from booking early, traveling off-peak, and utilizing points bonuses. Read on to learn more before your next trip.
The material made available for you on this website, Credit Intel, is for informational purposes only and intended for U.S. residents and is not intended to provide legal, tax or financial advice. If you have questions, please consult your own professional legal, tax and financial advisors.
Shop All American Express Credit Cards
