Are Gas Cards Worth It?

Gas cards are used as payment cards usually for diesel, gasoline, or other fuels at gas stations. Gas cards have a lot of potential benefits that vehicle and fleet owners ought to consider purchasing them. For example, they can be cheaper than credit cards, some cards can be used to buy non-fuel related items such as meals in hotels or redeemed to purchase goods, and it also offers fuel transaction limits.

There are many types of gas cards available on the market today. Getting the best gas cards can be a nerve wrecking experience especially if one doesn’t know where to look.

Oil companies issue personalized gas cards that are often partnered with a bank institution. Shell and Exxon Mobile are some of the popular ones in the market. There are several things you need to consider if you are thinking about getting a gas card. It’s easy to fall for the priceĀ  per-gallon discounts because 5 centers off per gallon looks attractive, who doesn’t want 5 cents per gallon off? What some people don’t realize is that the rewards you’ll be getting will change depending on gas prices. The higher the gas price the less those 5 cents off are valuable to you. Gas prices go up and down, usually up so this is a variable that has to be factored in. The inconsistent and unstable economy we find ourselves in is a risk not a lot of people hoping to save a couple dollars here and there are willing to take.

While most gas cards don’t charge an annual fee they do carry a hefty interest rate so If you are someone is hoping to save money on gas but carry a balance month to month, we recommend looking for credit with low interest rates. There are a lot credit cards that offer cash back bonuses at gas stations, Blue Cash from AMEX offers a 1% cash back on every purchase and Chase’s Freedom credit card offers up to 3% cash back rewards on rotating categories, gas stations included.

Gas cards are appealing to all of us due to the fact that the average American spends over an hour in a car per day, according to a Harvard study. This can go up to over 2 hours for someone that commutes in a city like Los Angeles. While gas cards have attractive features like 5 cents off per gallon, we conclude that in the end it’s not all that beneficial and recommend looking into credit cards with cash back rewards as you’ll be getting more out of your gas expense.