Credit Card vs Fuel cards

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Jazzstephen
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Credit Card vs Fuel cards

Postby Jazzstephen » Wed Aug 17, 2016 4:24 am

Hi,
I just want to ask, which is profitable for paying the gas , credit card or discount fuel card? My business operates on 2 vans and all the gas expenses are paid through credit cards. Some of my friends were telling me, Fuel cards can help save more.


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CarefulBuilder14
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Re: Credit Card vs Fuel cards

Postby CarefulBuilder14 » Wed Aug 17, 2016 11:42 am

Jazzstephen wrote:Hi,
I just want to ask, which is profitable for paying the gas , credit card or discount fuel card? My business operates on 2 vans and all the gas expenses are paid through credit cards. Some of my friends were telling me, Fuel cards can help save more.

To help you, someone would need information about the rewards program of the potential fuel card, the rewards you earn with your current credit card, and your annual gas spend.
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Jazzstephen
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Re: Credit Card vs Fuel cards

Postby Jazzstephen » Thu Aug 18, 2016 12:31 am

Alright, I am getting credit card rebate rate of 1 percent on purchases and annual gas expenses on both vans are about 1.4k . I don't know about the fuel card.

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Vattené
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Re: Credit Card vs Fuel cards

Postby Vattené » Fri Aug 19, 2016 4:22 pm

Well it would depend on the specifics of the fuel card. Without that side of the equation there's not much we can do to help you compare.

I'm not familiar with many fuel programs, but watch out that it's not set up under a structure type of "earn a high discount for the first 2 months, then a low discount thereafter." IIRC just from what I've seen advertised at lease some are set up like that, in which case it wouldn't really be worth it to me.

Also, are you wanting to keep your current credit card and only considering using a fuel program if it can save you more? Or would you look at applying for a new credit card (either exclusively for gas purchases or for general business use)? You could do better than 1% if you're open to applying for a new card. Citi's Double Cash is a flat 2% on everything. Bank of America's Cash Rewards is 3% on gas (plus 2% groceries/wholesale clubs and 1% on everything else). Neither of those examples has an annual fee. Rewards can get as complex as you're willing to tolerate and having a business opens you up to more options.
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Kevin86475391
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Re: Credit Card vs Fuel cards

Postby Kevin86475391 » Fri Aug 19, 2016 4:57 pm

Yes, unfortunately there are a lot of unknowns here. It would depend a lot on your credit card rewards, the fuel card rewards/discount, and even the gas station/company the fuel card is for. Some gas stations are of course much more expensive than others so using a fuel card may only get the price to about normal levels (or not even)....or maybe it's for an already inexpensive gas station and getting the discount too really gets you a great deal!

I agree though, 1% rewards for fuel isn't that great for credit cards and there are definitely better deals out there.

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Re: Credit Card vs Fuel cards

Postby TXviking » Fri Aug 19, 2016 6:36 pm

I'd look at the new Costco Visa from Citibank. I'm not a big Citibank fan, but they give 4% cashback up to $7000. That's hard to beat, and you won't beat it with a fuel card account for two vans.

The drawbacks are that a Costco membership is required and the cashback can only be spent at Costco. But if you shop at Costco anyway (and many small businesses do,) it's as good of a deal as you can hope for, IMHO.

Note that even though you can only redeem at Costco, you get the discount for fuel at any gas station that takes Visa. Which is pretty much all of them.

And if you find a small fleet card that does better, I want to know. :D

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CarefulBuilder14
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Re: Credit Card vs Fuel cards

Postby CarefulBuilder14 » Fri Aug 19, 2016 6:43 pm

TXviking wrote:I'd look at the new Costco Visa from Citibank. I'm not a big Citibank fan, but they give 4% cashback up to $7000. That's hard to beat, and you won't beat it with a fuel card account for two vans.

The drawbacks are that a Costco membership is required and the cashback can only be spent at Costco. But if you shop at Costco anyway (and many small businesses do,) it's as good of a deal as you can hope for, IMHO.

Note that even though you can only redeem at Costco, you get the discount for fuel at any gas station that takes Visa. Which is pretty much all of them.

And if you find a small fleet card that does better, I want to know. :D

OP's location is Canada, where Capital One has a Costco MC contract.

$1.4k in gas spend really isn't very much. Any extra rewards will be minimal.
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kdm31091
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Re: Credit Card vs Fuel cards

Postby kdm31091 » Fri Aug 19, 2016 7:29 pm

I would agree that the 1.4k spend is pretty small to worry about getting a specific gas card. I'd just get a solid overall cash back card instead.

TXviking
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Re: Credit Card vs Fuel cards

Postby TXviking » Sat Aug 20, 2016 1:15 am

Oops, didn't realize he was in Canada. I did learn on my own visit to Canada that Costco there only takes MC (which led to complications trying to fuel there; fortunately, I was traveling with a friend who had one.) I got rid of my last MC a few months ago when I cancelled my United MC.

takeshi
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Re: Credit Card vs Fuel cards

Postby takeshi » Mon Aug 22, 2016 9:28 am

Jazzstephen wrote:Alright, I am getting credit card rebate rate of 1 percent on purchases and annual gas expenses on both vans are about 1.4k . I don't know about the fuel card.

If you want help comparing we need the info.

You can do the math to determine what you're getting with your credit card. $1,400 * 1% = $14. You can do the math with other cards and compare the impact on rewards. As stated above, $1,400 annually is very little spend. Any rewards are going to be a very small percentage of spend so look at your biggest spend categories. If that's the biggest one for you then it's probably not worth fretting over but understanding the impact in terms of $ will help you to determine that.



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