With 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. Is the card a scam? No, it is not (despite what some people have alleged, to the best of my knowledge what they’re doing is completely legal). But is the Chevron gas card a good way to save money? No, and here’s why…

Understanding the different card offers…

Chevron includes Texaco (they acquired the company in 2001) so they issue cards under each brand.

• The “Personal Card” is not affiliated with any major payment networks (like Visa, MasterCard, etc) so it can only be used for purchases a Texaco and Chevron stations. There are gas rewards given during the first 60 days but after that, you will not be earning any gas rebates.
• The “Premium Card” is another NON major credit card. The one has $25.00 annual fee and it does earn rewards, but ironically not on gas. The rewards can be earned on ” airline tickets, car rentals and lodging when booking through our Travel Reservation Service.”
• The Chevron Visa card is a major credit card, so it can be used for purchases at their gas stations and elsewhere. It does give rewards on gas and other purchases and I’ll explain those in a moment.

The interest rate shocker…

As I write this review, the APRs listed on the applications were the following:

• Personal Card = 26.99%
• Premium Card = 26.99%
• Chevron Visa = 23.99%

With rates like that, carrying a balance on any of these is shooting yourself in the foot. I know a Chevron gas card is somewhat easy to get, but still… almost 24-27% is quite high any way you slice it.

How do the fuel rebates stack up?

As mentioned, only the Chevron Visa credit card offers a rebate on fuel purchases. Here’s how the rewards program operates:

• On regular purchase elsewhere, it’s a flat 1% rebate.
• On fuel purchases at Chevron/Texaco stations, it’s 10 cents per gallon.
• On non-fuel purchases at their stations, it’s a 3% rebate.

Now I don’t know where you live, but I live in California (coincidentally my surf spot is right in front of the Chevron refineries in Manhattan Beach) and last year – and so far in 2012 – the price per gallon is still hovering around $4.00.

Do the math… a 10 cent rebate on $4.00 gas = only a 2.5% rebate

If I’m going to apply for a gas credit card, I expect to get more than that, don’t you? Especially considering the fact that this credit card will restrict where I can buy gas (only at their stations) so I would expect a higher rebate than that. If it’s that low, then what’s the point of getting it?!

What category do you fall under?

The rewards chaser: If you’re like me and after rewards, then there are several offers on the market that will probably earn you a higher rebate on fuel. See my current listing of the best fuel credit cards. Some give as much as 3% to 5% at every gas station.

The bad credit guy or gal: For this category I can actually see some logic in trying the Chevron credit card application. Your credit score might not be high enough to qualify for the Visa version, but the “Personal” version might be a good starter card that you can use to work on your credit with. However with the high APR just don’t carry a balance with it. Secured credit cards are another way you can work on your credit, too.

 Written or last updated Jan 2012