Contractors Can Save Money Using Gas Cards
The disappointingly high and continued rapid increases of gas prices have left businessmen with high travel and transportation costs. However, the effect is seen more on businessmen that rely on gas to get things done. Contractors for instance, use gas on vehicles to transport equipment and materials and to run heavy machinery.
Gas prices have doubled since last year and contractors are currently seeing a doubled transportation expense on their books. In this kind of business, cutting down on cost is not a possibility. The only way to reduce expenses is for them to employ a gas saving tip. Luckily, gas cards are here to help contractors reduce transportation and travel expenses.
There are two types of gas credit cards - prepaid and credit. The two may differ in some ways, but both definitely help contractors save money on gas. Gas credit cads work just like the typical credit card only that rebates are earned every time the card is used to pay for gas purchases. The current percentage of rebates that can be earned are somewhere between 2% to 5%. This may only seem a minute percentage but when applied to the total gas consumption, especially to the hefty consumption of contractors, results to a very substantial savings. Moreover, rebates are earned in the form of rewards points. These points are then accumulated and can be redeemed depending on card policies. Some cards have redeemable limits while others do not. Eventually, rewards points are converted into cash back, airline tickets, merchandise or gift certificates for affiliated products and services.
Clearly, using gas cards will help contractors save money and offset ever-rising gas prices. If you are a contractor and have not started using these cards yet, then now is the right time to start reducing your travel and transportation expenses. Nevertheless, before you go out and get a card, know the things that you should be wary about in gas cards. Below are some of the things to consider in choosing cards.
Annual Percentage Rate
Gas credit cards like typical credit cards carry an annual percentage rate that is charged to the maintaining balance of the card. If you plan to maintain a balance on your card, then choosing a card with the lowest APR will be preferable as this interest may easily negate any savings. However, the key to maximizing savings by using this type of card is to pay the bill on time and in full every billing period to avoid paying for the APR.
Be wary of cards that limit your savings or those that have rebate caps. Your gas consumption as a contractor is expected be above usual rebate caps.
Redeeming rewards may have expiration periods for some cards. If you find a card with no expiration periods and has the right combination of percentage rebate and APR, then go for that kind of card. If not, take note of expiration periods to avoid loosing your savings.
Introductory periods are set for a limited period of time only. While deals are sweet during this period-0% APR and higher percentage rebate, the rates that you get in the long run should be considered.