As a fleet owner, it is your priority to ensure that whatever programs you introduce to your business will help you, your business, and your employees to grow and work efficiently and effectively.
One such program that can help your business scale the heights is a business gas card.
This card, also referred to as a fuel card, fleet card, fleet fuel card, or fleet gas card, is a kind of a secured or unsecured credit card which permits fleet owners to get gas.
These kinds of cards usually are more accessible to qualify as compared to mainstream credit cards.
Fuel cards bring tons of benefits to a fleet such as:
- Theft Control
- Detailed reporting
- Driver support
- Vehicle maintenance
- Discounts and rewards
- Better fuel management
- Purchase Control
- Payment security
- Centralized billing
- Accounts alerts
Here are a few points to consider when using your business gas card to elevate your credit.
- Timely Payment Of Bills
In most cases, as an incentive for using fuel cards, card providers update reports of on-time payments to D&B and other credit bureaus. The cards can, therefore, be a basis or foundation for businesses to build their credit.
Unlike credit cards that demand specific credit scores, fuel cards can act more as unsecured credit, and a score is usually not a prerequisite. The issuer of the card would often take a risk for payment of gas bills as a monthly payment.
When a fleet owner manages to make their payments on time, the card issuer, in turn, is obliged to report positive performances with the necessary credit bureaus. On-time payments, in turn, elevate your credit rating with the said bureau.
- Keep Your Balances Very Low Or Have None At All
If you do keep too much debt on your fuel card compared to the available credit on your unsecured card, this can significantly affect your credit rating. For example, say you have two fuel cards, and their limit combined is $5,000. If you rake up a balance of $1,500 on one and one of $3,500 on the second, then your CUR (Credit Utilization Ratio) is 100 percent. The recommended CUR by credit experts is less than 30%.
The only way you can keep your CUR at less than 30% is to pay off most of what you owe every month and keep surprise expenditure off of your business gas card.
Instead of waiting for the end of the month to make credit payments, you can make two payments every month to help manage your credit.
- Consider Secure Credit
Many fuel cardholders use unsecured fuel cards. However, if you want to build your score while having bad credit, you may want to use a secured business gas card. Secured cards will help a lot in establishing your credit because the deposit you use to put down also acts as your limit.
Secured cards are a great way of building your credit, especially for small fleet owners who do not use so much fuel.
Using a secured fuel card ensured all your bills are paid on time, hence a positive credit rating.