Pros and Cons of Fuel Cards

Fuel cards are a type of credit card that is offered by individual fuel companies. The owner of the card can use the credit card to purchase gas at the appropriately branded gas stations and will then be billed for the amount of gas that was purchased. The card holder can choose to pay off the entire balance or can make installment payments, just like a regular credit card. Here are a few of the pros and cons of fuel cards.


One of the primary advantages of using fuel cards is that you will get a discount. Most the time, the big incentive of utilizing a fuel card is that customers can pay less money for gas if they will go to a particular brand of gas station. In many cases, you can earn as much as 5 percent off the cost of fuel. When you are dealing with high gas prices, this can be a substantial discount. If you are the type of person that drives a lot, these savings can really add up in a hurry.

Another advantage of using a fuel card is that you can get rewards. Many of the programs out there allow you to accumulate reward points for every purchase that you make. You can then use these rewards points to purchase things that you need, like airplane tickets, hotel accommodations and other general items. These rewards are a nice bonus.

Using a fuel card can also be very convenient. With this type of card you will be able to pull up to the pump, stick the card in the card reader, and then get your gas. You will not have to walk inside and pay for anything. This can save you time and effort. Many gas companies have started to use cards that fit on your key ring so that it is easy to keep the card with you at all times.


Using a gas card can be beneficial, but there are also a few drawbacks. One is that you will have to pay interest on your fuel purchases. If you are the type of person that likes to leave a balance on your credit card, it could end up costing you substantially in the long run. Also, the interest rate can be very high. If you even leave a balance on your card for one month, it can more than make up for the discount.

When using a fuel card, it can also be very difficult to budget for your gas cost. The convenience of not having to consciously decide to purchase gas can make you overspend. If you get in the habit of charging your gas purchases, the amount of money that you spend can sneak up on you. Then when you get the bill at the end of the month and you have to come up with the money to pay for it, it can be difficult to do so. You might find yourself stretching your budget and then leaving a balance on your card.

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