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As an Uber driver, you're probably spending a lot of time on the road.
Car-related expenses need to be understood in order to decrease your cost of being a driver.
Uber drivers spend between $250 and a whopping $800 per month on gas.
Instead of spending this all out of pocket, credit cards often offer perks that reduce expenses.
Yes, a credit card can quickly become a liability, especially if you get into serious debt. But using it for spending on fuel and other expenses, that you pay off regularly, can be beneficial.
Here’s how:
- Credit cards offer cashback and other rewards on purchases.
- By spending with your Uber driver credit card to get fuel, you will get cash back and points.
- The cash back is credited into your account, and the points can be redeemed.
So, you need credit cards that will reduce your fuel expenses. It can be a discount, priority service, more points, etc.
Benefits of Credit Cards for Uber Drivers
Personal finance professionals may recommend not using credit cards. Many of us make irresponsible credit card purchases and wind up in debt.
However, contrary to common narrative, you're much better off paying with a credit card than a debit card, as long as your spending doesn't get out of hand, and keeping cash purchases to a minimum.
The following sections detail some credit cards that make sense for Uber drivers.
Instant Access to Credit
The most significant benefit of a credit card is the ease with which it may be used to obtain credit. Credit cards work on the principle of deferred payment, which means you can use your card now and pay for your purchases later.
The money used does not leave your account, so you don't have to worry about depleting your bank account every time you swipe.
Builds your Line of Credit
Credit cards give you the ability to build up a credit line. This is critical because it allows banks to see your active credit history, which is based on your credit card repayments and usage.
Credit card usage is frequently used by banks and financial institutions to assess a potential loan applicant's creditworthiness, making your credit card vital for future loans and rental applications.
Access to an EMI facility
You can choose to put a major purchase on your credit card as a way to defer payment if you don't want to spend all of your savings on it. Furthermore, you have the option of paying for your item in equal monthly installments.
Paying through EMI is less expensive than taking out a personal loan to pay for a large purchase like a television or a refrigerator.
Offers and Incentives
Most credit cards come with a slew of offers and incentives to encourage you to use your card. They provide Uber drivers discounts on gas, cashbacks, and points that can be used for other things.
The points can be redeemed to obtain additional benefits like discounts on purchasing and cash back. Lenders may also give discounts on credit card purchases, such as airplane tickets, vacations, or significant purchases, allowing you to save money.
Here are the Best Uber Driver Credit Card
Choose from the best Uber driver credit cards.
Best Credit Cards for Uber Drivers Good/Excellent Credit Score: 670 - 739
Citi Premier Card
The Citi Premier® Card is a well-priced card with a number of excellent bonus areas. You get to earn 3x points on air travel, hotels, gas stations, supermarkets, and restaurants (including takeaway).
All of this is available for just $95 a year, which is a great deal at this price. A few additional benefits include;
- 80,000 Thank You Points after spending $4,000 in purchases within the first three months.
- Gain 3 points for $1 spent on gas across all the gas stations in the country.
Besides using it for gas, this Uber driver credit card is great for dining and shopping at supermarkets.
Blue Cash Preferred® Card - American Express
The American Express Blue Cash Preferred® Card could help you save money at the gas pump and at the grocery store.
- It gives a 3% cashback at gas stations in the United States.
- You'll also get 6% cashback on up to $6,000 spent at U.S. supermarkets each year.
- As well as 6% cashback on select U.S. streaming subscriptions.
In addition, you can receive 1% cashback on all other transactions. If you spend $3,000 on purchases in the first six months after opening the account, you'll get a $300 statement credit.
The American Express Blue Cash Preferred® Card has a $0 annual fee for the first year, after which it costs $95.
Discover It Miles Card
The Discover it Miles Card matches the miles you have driven, making it another beneficial Uber driver credit card. You get three miles for every $1 spent – it is towards the top of the list.
You may feel inclined to choose a card solely based on an introductory offer. However, is rarely the wisest option. The good news about Discover it® Miles is that it has a flat earning rate of 1.5 miles for all purchases and provides a decent opportunity to rack up rewards, even after your first-year match period has ended.
- Your miles are valued at $.01 each, regardless of the choice you choose — 100 miles always equals $1.
- You can redeem the miles earned to pay your monthly bills and also pay the minimum credit card payment.
You can earn as many miles as you want, and your miles never expire. Plus, because it's a flat-rate card, you won't have to worry about tiers or changing categories.
Best Credit Card for Uber Drivers with Fair Credit: 580 - 669
Individuals with Fair credit score may find it a bit hard to get a credit card. This is because the companies don’t trust the people with fair credit.
The fear of the person defaulting on the payments makes the credit card companies sometimes block the approval. But there are some options for you if you are suffering from a fair credit score.
Capital One Platinum Credit Card
The Capital One Platinum Credit Card is one the few credit cards designed specifically for those with fair credit. There are no additional fees, such as an annual or monthly fee, to use the card.
With careful usage of your credit card, you can improve your credit score over time. In as little as six months, you'll be automatically assessed for a bigger credit line.
- $0 Fraud liability in case the card is stolen.
- Automatic reassessment after six months for a higher credit limit.
Capital One's free Credit Wise feature allows you to keep track of your credit profile and score. Finally, this card offers contactless payment, allowing you to speed through the checkout process.
Capital One Quicksilver One
The Capital One QuicksilverOne Cash Rewards Credit Card is one of just a few cards intended specifically for people with fair credit, but this one comes with a reward too.
And rewards with credit cards meant for a fair credit score are not easy to come by. This one is an appropriate Uber driver credit card because of many reasons, one of which is 1.5% cashback, including gas.
- The QuicksilverOne credit card has a $39 yearly fee, but you'll break even if you spend $2,600 every year.
- It comes with a higher-than-average variable APR of 26.99 percent on purchases.
Your QuicksilverOne rewards can be redeemed in any quantity and at any time. Plus, they never expire. Rewards are available in the form of a statement credit applied to a recent transaction or a check delivered to you.
Best Credit Cards for Uber Drivers with Bad Credit Score: 300 - 550
As much as a good credit is a reality, bad credit scores are also an understandable truth. Without going into the reasons for anyone having a bad credit score, here are a few credit card options for them.
We are including these in the Uber driver credit cards list to provide comprehensive guidance to all the rideshare drivers.
First PREMIER® Bank Mastercard
The First PREMIER credit card is a high-interest unsecured card for those with bad credit who need to borrow a modest quantity of money for an emergency and have few other options.
It's a high-cost credit card, for sure, but it does have some advantages. Even with a low credit score, you get some purchasing power in your hands and an opportunity to redeem your score.
- You have the option to manage your credit limit and choose between secure and unsecured credit.
- It comes with a few extra tools and functions to help you manage your credit spending.
Using this credit is a safe option compared to other Uber driver credit cards in the same category. Mostly because you will have access to credit instantly and a chance to get back on track.
OpenSky Secured Visa Credit Card
The OpenSky Secured Visa Credit Card simplifies the process to build your credit score even if you have troubled or little credit history. You will experience a quick sign-up process, which means that the providers are a bit lenient on this front.
The OpenSky Secured Visa Credit Card offers a number of advantages, including a simple four-step application procedure that requires no credit checks, an initial refundable deposit, and the possibility to extend your credit limit after you've opened your account.
- This card's no-credit-check policy makes it easier for folks with bad credit to rehabilitate their credit.
- OpenSky also provides you with a dedicated support page that educates and recommends steps to help you build your credit.
The beginning security deposit amount determines your line of credit with this Uber driver credit card. OpenSky essentially asks cardholders to invest in themselves in the same way that a bank requires a down payment to qualify for a home loan.
Best Gas Credit Cards for Uber Drivers
Gas savings and points are available on a variety of credit cards, not only those with a gas logo. Many credit cards provide rewards programs that include petrol purchases as a separate shopping category for which you can earn extra cashback or points.
This type of card is useful for people who wish to save money on gas without being bound to a particular gas station.
Discover It Cash Back
The Discover It Cash Back Uber driver credit card matches all cash back earned in the first year. The new cardholders can earn an amazing amount of cash back on purchases made within the rotating 5% cash-back categories during that time.
Furthermore, Discover publishes its full quarterly category list at the beginning of the year, making it simple to assess if the bonus categories will fit your buying habits.
- Get 5% cashback on purchases made at gas stations for gas and other items too.
- 14 months 0% APR offer on purchase and balance transfers is super convenient for first-time credit card holders.
All this means that with a little planning and regular credit card use, you may save a lot of money, especially during your first year.
Citi Rewards+ Card
The Citi Rewards+ credit card is a great one for Uber drivers for to two reasons. The first is the ThankYou Points Round-Up feature, which is part of the company's rewards program.
The ThankYou program gives two points for every dollar spent in supermarkets and gas stations (up to $6,000 in purchases per year) and one point for all other qualified purchases.
The Citi Rewards+ Card, on the other hand, offers a tempting extra by rounding up points on every purchase to the nearest tenth. For example, if you spend $3 on a cup of coffee, you will receive 10 points instead of three. If you spend $41 at the store, you will receive 90 points rather than 82.
- You will also get a 10% "rebate" on the first 100,000 ThankYou points you redeem each year.
- The annual fee for the Citi Rewards+ Card is $0 per year. It also provides a good limited-time bonus of 20,000 ThankYou points if you spend at least $1,500 on qualifying purchases in the first three months after getting the card.
The Thank You Rewards program makes using this card for gas and other purchases convenient and less burdensome.
Wells Fargo Propel American Express Card
The Wells Fargo Propel American Express card is designed as a rewards credit card with travel-related features. It could be an excellent addition to your wallet thanks to its generous balance transfer benefits, solid rewards offered for everyday purchases, and some extra perks and features are thrown in for good measure.
For every $1 spent on travel-related transactions, such as flights, hotels, gas stations, homestays, rideshares, transit, and auto rentals, you will receive three points.
- You'll get three points for every $1 spent on dining and three points for every $1 spent on popular streaming services. All other purchases earn you one point for every dollar spent.
- You also get the chance to earn 20,000 points on spending at least $1000 in the first three months.
With that kind of pay structure, you might find yourself pulling this card out of your wallet rather frequently. Plus, there's no need to worry about paying an annual fee because there isn't one!
Conclusion
Driving for a rideshare company might be a well paid gig, but plenty of costs are required to keep you up and running. While researching a credit card, you must look for the ones that offer rewards either in terms of cash back (in percentage form) or in points.
Once you have chosen the best Uber driver credit card for you, it is important that you take care to use it responsibly, especially if your credit score is less than optimal. If your options are limited, you can still choose a card that caters to low or bad credit score and start building a better credit history.
