The Pros and Cons of a Prepaid Gas Card

Buying a prepaid gas card is something that many people do every year. Many credit card companies and gas companies have combined to offer prepaid gas cards for nearly every brand out there. Therefore, your options for a gas card are plentiful. When you get a prepaid gas card, you are entitled to several benefits as a result. However, these cards are not without their drawbacks as well. Here are a few pros and cons of a prepaid gas card. 

Pros

Cheaper gas- Many of the prepaid gas card programs out there will actually give you a discount off of the regular advertised price for gasoline. You may receive so many cents off per gallon, or you may receive a percentage back of the total amount that you pay for gas each month. It may be credited back to your card at the end of the month.

Easier budgeting- When you buy a prepaid gas card, you will be able to budget for your gas needs easier. You have devoted a certain amount of money to your gas needs and this makes it easier to keep track of your gas expenses. Everything that you put on your gas card is devoted to gas expenses and the rest of your money can be used for other things.

Safety- Using a prepaid gas card is a lot safer than using cash. Many people like to deal with cash for everything. When you do this, it can cause problems for you in the future. If cash is lost or stolen, it is as good as gone. If your prepaid gas card is lost or stolen, you simply call the company and notify them. They will get you a new card immediately and all of your money will still be available to spend on gas. This makes it quite a bit safer than other methods of payment.

Perks- Some prepaid gas card programs actually will give you perks for using their services. For each dollar that you spend on gas, they will give you points that you can use for a number of different things. You may be able to use the points on travel, merchandise, or even cash back.

Cons


Ties up resources- When you put money onto a prepaid gas card, it can tie up money that you may need for something else. This tends to limit your cash flow which can cause bigger problems throughout the month. For example, when you put $200 on the card, that $200 is tied up until you use it. You usually can not get the cash back off of the card for other uses. Even if it takes you three months to use up the $200 on gas, it just sits there on your card and does nothing. If you need the cash for bills along the way, this can cause problems.

Application process- Getting a prepaid gas card can be somewhat of a hassle depending on the company that issues it. You may have to fill out a form and wait for processing. This makes it more inconvenient than cash in this regard.


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