Chevron Credit Card a Scam?
July 11, 2009 – 9:16 pmWith gas stations coast to coast, it comes as no surprise that the Chevron credit card is one of the most widely issued gas cards in America. But be warned… before you fill out an application to get your own, there are a few important things you should know.
The Interest Rate Shocker…
Chevron includes Texaco (they acquired the company in 2001) so they issue similar cards under each brand. Their ordinary cards are no affiliated with any major payment networks (like Visa, MasterCard, etc) so they can only be used for purchases at their stations. Two of them offer no rewards on fuel purchases, and the other one that does requires cardmembers to pay a $25 annual fee just to have the ability to earn cash back… not cool! These all carry sky-high interest rates, currently starting at whopping 21.49% APR at the time this article is being written.
The company also issues another, different category- the Visa Chevron Texaco cards. The interest rate on these is not cheap either… as high as 20.49% when this post was published. There is a Biblical term which may be well suited for describing these numbers… USURY.
The Rewards Exposed…
Let’s be honest here. The only reason 95% of us apply for a gas card is because we are looking to get a cash back rebate on our fuel purchases. So you would think these would have fantastic rewards? Well, think again. In fact, according to their official page, it appears their “personal” cards only give you cashback for the first 2 months only. After that, there’s no great benefits offered. For example, they list “zero fraud liability” as a benefit, when in reality, virtually every credit card on the market gives you that. And if they didn’t, federal law protects consumers – you can only be held liable for upto $50 in fraudulent charges – so for them to call this a “benefit” is certainly a stretch. And if you pay the $25.00 for the “premium” card do you think it’s any better? Not much! They only offer a small rebate but it’s not even on gas… only specific travel services, and only those booked through their reservation service (which is rumored to give overpriced bookings, too).
Now their Visa-version does offer gas rewards, but they’re certainly nothing to write home about. It saves up to a dime a gallon, but only at their gas stations (which usually cost more, anyway). Also, if you do the math, at $3.00 gas, that only equals out to be about a 3% rebate per gallon.
It Gets Worse…
Our research has found complaint after complaint peppered across the net. For example, one story profiled a loyal California cardholder of 35 years who had always paid her bill in full each and every month, never late. While on an unexpected roadtrip, she was struck with a big surprise… GE Capital (who manages these cards) decided to cut her credit limit from $3,200 to $100 out of the blue. They cited no negative reasons for the change. Her trip was thrown into haywire, as she counted on that card to fill her tank.
The Solution…
Stay away from the Chevron credit card. There are so many other options out there when it comes to gas cards. For example, you may want to check out the no annual fee which offers a full 5% cashback bonus at virtually every gas station, and a full 5% cashback bonus on your auto maintenance spending. The rewards on the Chevron cards are laughable in comparison.
Changes are coming for all Northwest WorldPerks Visa cardholders. With the merger of Delta and Northwest, both frequent flyer programs will be integreated into the SkyMiles airline loyalty program, now exclusively provided by American Express (previously managed by U.S. Bank). For Northwest WorldPerks cardholders, American Express says they will be allowed to keep the miles they’ve earned; however, to earn additional miles they will need to apply for a Delta SkyMiles credit card.