Are fuel cards worth it?

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On One Hand: Fuel Cards Offer Money Rebates

Fuel cards can be worth getting because most offer money back for every gas purchase made. The typical rebate amount is around 5 percent, meaning that a driver will receive about $5 for every $100 he spends. While this may not seem like a lot of money, this amount adds up over time, especially for larger vehicles that use a lot of gas or smaller vehicles that are driven a lot.

On the Other: Fuel Cards Come With Restrictions

Fuel cards have several restrictions that drivers are often unaware of. Among them is that some fuel cards cannot be used at every gas station, and many gas stations that do take these cards offer much lower than average rebate amounts. Also, fuel cards have an extremely high interest rate, averaging a roughly 29 percent annual APR. This high interest rate could make the cash back one receives while using the card not worth the cost of carrying it.

Bottom Line

Fuel cards can be worth having if one drives a lot and spends a lot on fuel. However, fuel cards can be expensive to carry, especially if one does not fill up regularly or uses the card to make non-gas related purchases. Drivers in this latter position may end up losing money in the long run.

Source:

Who Can Benefit From a Gas Card

Pitfalls of the Gas Card

More Information:

Gas Card Guide

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