At first glance the Valero credit card may sound like a good deal. But if you take a closer look, you’ll be in for a shocker. Those that call it a “scam” are incorrect, because the Valero gas card isn’t breaking any laws. However, it’s still a lousy card. Here’s why…

First of all it can only be used at Valero gas stations. This is a huge problem if you’re outside your neighborhood, because this chain is not found everywhere. Secondly, the interest rate is outrageous. At the time I’m writing it can be up to 25.99%. The last reason, the reason most people apply, is the gas rebate. But the Valero gas credit card barely offers any rewards at all. It’s between 0.01 to 0.02 cents per gallon depending on what type of fuel you buy (diesel, premium, etc.) Note that is cents, NOT percent. That means on $2.50 gas you are getting less than 1% rewards. Being that all cards nowadays offer at least 1% cash back, this is truly pitiful.

Ad: Get a full 5% cash back at any station w/ no annual fee!

If that low of a gas rebate wasn’t bad enough, if you read the fine print you will be shocked to see that they offer this on their “Preferred Gold Card.” Their regular cards have no annual fee, but if you get this one that qualifies for the rewards, you have to pay an annual fee. Why one earth would you pay to have a card with such a crappy reward structure? It just doesn’t make sense, plain and simple.

Why Is It Popular?
Well, first of all it should be noted that the Valero credit card is actually not that popular in comparison to the other gas cards out there. So why do people apply? Well, it’s likely that some are confused by the signup promo offer they offer occasionally, which is a small discount per gallon. First of all they typically only offer you this for a very short period of time, such as one to three billing cycles. Second of all, it’s such a pitiful amount, that there are other options out there that offer a higher rebate all the time instead of just for a few weeks.

My guess is the only reason it exists is because it has Valero gas stations are behind it. Without that, I doubt this gas card could survive on its own. The cash back is just too low and the APR too high for it to make any sense.

What Are Your Other Options?
Fortunately there are others out there that would be a better choice. You wouldn’t be paying any annual fee. You would be able to use them at any gas station, not just Valero. Plus you would get more per gallon.

If you open up your wallet, probably the plastic you already have in there offers you more than this does. So if nothing else, just keep using your Visa or MasterCard and you will do better.

What is the best gas rebate credit card? (sponsored)
The Discover More card gives a whopping 5% cashback bonus categories of spending that rotate throughout the year. One of those is gas; at virtually every station, including Valero! With no annual fee, it’s a no brainer. Check out the Discover More card to learn more.