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How to use fleet cards to build business credit

After a call with a Business Credit Workshop student of mine, several years ago, I compiled a list of business gas cards. Originally, I summarized the key points from the conversation and shared my findings here. At the time, the article was meant as a supplement for current students of the e-course. I’ve since decided to provide even more information, make it public, and regularly update this directory of credit-boosting business gas cards.

Here, you will learn what a business gas card is and how it differs from a regular credit card, everything you need to know about using one, and how to select the best card(s) for your company. Then, you’ll find a list of 11 cards to study including terms, rates, and rewards. Read all the way to the end for bonus advice about your application and payments.

Contents:

First, What is a Business Gas Card?
- FAQs
11 Easy-Approval Business Gas Cards to Boost Your Business Credit Score
Bonus: Business Fuel Card Advice
Final Thoughts

Let’s get the ball rolling…

First, What is a Business Gas Card?

A business gas card, fuel card, or fleet card is a secured or unsecured credit line — often with net 30 or comparable terms — that enables business owners and staff to pay for gas and sometimes other expenses like insurance and auto maintenance. Many cards offer benefits such as fuel cost discounts. And, these cards are typically easier to qualify for than traditional credit cards.

As a bonus, fleet card servicers typically report on-time payments to business credit bureaus, including D&B. So, fuel cards provide a convenient way for businesses to build credit.

Frequently Asked Questions

How Does a Business Gas Card Work?

A business fuel card is used in place of cash, credit, or debit to pay for gas. The cards enable drivers within a company to acquire petrol at stations within a designated network. The business, not the individual, is responsible for making the monthly payment in full.

What Credit Score is Needed for a Gas Card?

While credit cards require certain respective credit scores, business gas cards are often leveraged as secured credit. So, a certain score is not typically required. Instead, the card issuer takes a risk in return for a monthly service fee or other arrangement.

Can’t You Just Use a Regular Business Credit Card for Gas?

Yes, you can use most business credit cards to pay for gas (if you are authorized to do so). However, with business fleet cards, you often get discounts on fuel. And, some people use fuel cards with net 30 terms to build business credit before applying for a traditional, revolving business credit card?

Are Company Fuel Cards Worth it?

According to some sources, a gas card is arguably not a good idea. These sources say that fuel card interest rates run higher than a typical credit card and that companies are better off choosing another funding source. However, because of their approval rate, value, and convenience, they are one of the best to build business credit. And, for those naysayers, AtoB has a completely free offer.

So, yes, company fuel cards are worthwhile for many people.

What Are the Benefits of Having a Fuel Card?

Business fuel cards come with several advantages. While some of the pros have already been stated, here’s a list of benefits.

Convenience – No need for cash, credit, or debit cards.
Consistent Pricing – Fuel up within one network of stations.
Payment Security – Payments are made through a secure server.
Organized Cost Tracking – No need to manually collect receipts.
Tax Write-Off Monitoring – Easily access fuel spending during tax preparation.
Discounts & Rewards – Discounts & rewards are offered to cardholders.
Customized Reporting – Gain a clear picture of your fuel budget.
Unified Billing – Pay for all business fuel costs at one time.
Account Alerts – Get notified about important account information.
Electronic Receipts – Receive receipts electronically via SMS or email.
Purchase Amount Control – Gain more control over fuel purchases.
Time-Savings – Administration efforts are cut tremendously.
Credit Building – Issuers report on-time payments to credit bureaus.

With on-time payments, a gas card can tremendously enhance your operations and help increase your business credit score.

What Business Gas Card is Easiest to Get?

Fleet cards aren’t known for being especially difficult to get. In fact, they’re typically used to build credit. But, in my experience, AtoB looks like the best offer — they offer a free, secured card to business owners who might not qualify for their normal net 7 terms in the beginning (over time, with responsible payments, AtoB might upgrade terms).

11 Easy-Approval Business Gas Cards That Can Help Boost Your Business Credit Score

Leverage these companies to build positive trade lines that report to Dun & Bradstreet (D&B) and other bureaus. Responsible use and on-time payments with these vendors will help boost your D&B, Experian Business, and Equifax Business credit scores.

1. AtoB Business Gas Card

Terms: Net 7 (pay-in-full weekly)
Rates: FREE
Rewards: Save up to 25¢ per gallon on fuel purchases, use anywhere Visa is accepted, see the best prices from nearby gas stations, spending control, and use your card to pay insurance, payment, tolls, and more.

2. Shell Small Business Card

Terms: Revolve or pay-in-full
Rates: Up to Prime +20.74% variable APR
Rewards: Save up to 6¢ per gallon of fuel purchases and discounts at participating Jiffy Lube® locations.

3. Comdata Universal Mastercard

Terms: Revolve, pay-in-full, or prepaid
Rates: Up to Prime +23.99% variable APR, up to $10 per month service fee, and up to $50 one-time setup fee
Rewards: Save up to 6¢ per gallon of fuel purchases, an additional 6¢ per gallon for the first six months, 5% on maintenance at participating Firestone® and Tires Plus® retail locations, and up to 3¢ per gallon rebate with participating merchants within the Retail Savings Network, use anywhere Mastercard is accepted.

4. Sunoco Universal Fleet Card

Terms: Pay-in-full
Rates: 6.99% monthly percentage rate, $2 monthly service fee, and $40 account setup fee
Rewards: Save up to 6¢ per gallon on fuel purchases and up to 25¢ per gallon through the promotional period

5. Exxon Mobil FleetPro™ Card

Terms: Revolve or pay-in-full
Rates: 23% variable APR and minimum $2.99 finance charge
Rewards: Save up to 6¢ per gallon of fuel purchases

6. Conoco Universal Card

Terms: Revolve or pay-in-full
Rates: 28.74% variable APR, 0% APR if paid in full monthly, and minimum $2.00 finance charge
Rewards: Save up to 7¢ per gallon, accepted at 95% of gas stations

7. Chevron and Texaco Business Card

Terms: Revolve or pay-in-full
Rates: 9.99% monthly percentage rate with up to $10 service fee
Rewards: Save up to 10¢ per gallon on fuel purchases in the first six months

8. BP Business Solutions & Business Solutions Plus

Terms: Revolve or pay-in-full
Rates: 14.99% to 23.99% variable APR (revolving) or 1.95% monthly percentage rate (non-revolving) and up to $10 service fee
Rewards: Save up to 6¢ per gallon on fuel purchases

9. Valero Fleet Fuel Cards

Terms: Revolve or pay-in-full
Rates: 16% to 24% variable APR (revolving) 1.33% to 2% monthly percentage rate (non-revolving) with no minimum interest
Rewards: No discounts (To save up to 8¢ per gallon on fuel purchases, large fleets might look into the Valero Fleet Credit Card)

10. Speedway Business Fleet Card

Terms: Pay-in-full
Rates: 7.99% monthly percentage rate and a $75 minimum service fee
Rewards: Save up to 5¢ per gallon on fuel purchases

11: Wex Small Business Fuel Cards

Use Wex to help you make the right card selection for your operations. Choose between credit or charge cards, and select your state and your preferred brand to compare the best available options — they have a ton of cards.

Terms: Variable
Rates: Variable
Rewards: Variable

Bonus: Business Fuel Card Advice

The first key to building business credit starts before you obtain your card. When you apply for business gas cards, if you have 5 or more employees and have done business for two or more years, it will usually eliminate your personal guarantee. So, apply as a business using your EIN or DUNS™ number instead of your social.

Next, the number of employees you have and the amount of time you’ve been in business are stronger indicators of eligibility than the number of vehicles you use. So, if you only have one vehicle, only list one fleet car. The more honest you are, the more relevant terms you will receive.

Finally, you may need to make a tough decision about how to pay on your account. For most gas cards, even with revolving credit, you can avoid periodic interest rates by paying your account in full each period. If you’re looking for the highest possible savings, this is a good idea.

However, as with most revolving credit, some bureaus consider a small balance under 30% of your limit ideal. So, when you qualify for revolving terms on your preferred gas card, carefully weigh the pros and cons before you determine whether to pay a portion or to pay your entire balance each month.

Final Thoughts

If you’ve made it here, congratulations — you are officially one step closer to boosting your business credit score. You have the information you need to fully leverage business gas cards, so go put it to use. In the meantime, Would you like to learn how to obtain up to $100K in business credit in as few as 30 days? Join Business Credit Workshop today.

How to Use Business Gas Cards to Build Your Business Credit (Updated Sept. 2022)