Chevron Gas Card going to 33.99% APR, LOL!

[Rogue]

I was helping my parents with some financial issues last week and they show me a letter from Synchrony dated March 10, 2025. And it stated that all Chevron gas charge cards are going to 33.99% APR effective May 9, 2025. I actually thought this was a typo or April Fool's Day joke at first!  This is my parent's oldest card with 6+ decades of age, so I have always told them not to close it, I know there are better options for purchasing gas, however they barely buy one tank a month and always PIF before their statement cuts, so I am not going to have them change their routine and both of their FICO's are 800+ today.

 

This card was originally issued by Chevron U.S.A. thru their wholly owned subsidiary Chevron Credit Bank, N.A. but the card portfolio was unfortunately sold to GE Money Bank, N.A. back in December/2007.  Then GE Money Bank (GEMB) changed their name to GE Capital Retail Bank (GECRB) in October/2011.  And finally, GE Capital Retail Bank (GECRB) changed their name to Synchrony Bank in June/2014 with GE Capital spinning off Synchrony Financial with an IPO the following month, and here we are today.  I do have to say that Synchrony has been a nightmare to deal with for my parents, constant issues and problems with them and their websites! The only reason this card has survived is the age! My parents have no other Synchrony cards, and I have never had one other than being an AU on this card since I was in college. After all the issues my parents have had with Synchrony, I would never ever apply for one of their products or cards!

 

So, as a gas card, the APR on this card has always been absurdly high and my parents never pay interest, but this card going to 33.99% is just insane, especially since the cost of funds to Synchrony probably averages somewhere between 1-4% today. The APR structure on this card use to be tiered based upon "creditworthiness" and rates were calculated based upon a Margin + Prime Rate.  Then in September/2022, Synchrony blew-up their entire APR structure and ALL cards were charged a flat 29.99% APR with no more tiers and no more Margin + Prime Rate! After this change, as the Prime Rate fell, this card remained at 29.99% resulting in de facto rate increases. This structure is remaining in place; however, the current flat rate APR is now going from 29.99% (which use to be the card default rate) to an insane 33.99%.  Regardless of the APR, I would never recommend any Synchrony card and will never apply for one! And the Credit 101 lesson of the day here is always PIF!

[Krish]

If you are PIF it doesnt matter. They might as well be acquired by greensky or blue sky or whatever that jacks up to 500%.

[MP80]

Synchrony, Comenity, and Barclays, I’ve never applied for their cards given the reputations they’ve established. 

 

Default APRs were raised to 29.99% not too long ago, targeting consumers who violated the terms and agreements of their credit cards. Furthermore, this punitive APR was designed and equipped for subprime customers with bad credit or delinquent records (such as previous charge-offs and bankruptcies) who were high risk, and the borrower had to endure the highest APR possible.

 

Unfortunately, the largest banks now do this to their 1% risk customers by pretending it is normal and jacked up their APR. For example, the Chase Freedom card has an APR of 28.99%, and just a few days ago someone was approved for a $10K credit line on a Capital One VX at 29.99%. This insane high APR is insidious for staging future entrapment for all who carry balances, purchase, or balance transfer. It doesn't matter; it's an odious trap to anyone who potentially stepped in.

[hdporter]

 I don't believe banks come out ahead when customers default; so I don't buy the "trap" thing.

 

And, if customer risk is such that they're not eligible for <15% card rates, I kinda feel that banks might be doing them a favor by sending a clear message, "you're an idiot if you revolve a balance".

 

Banks increasingly have had a lot of bad debt dumped in their laps.  Yeah, they're complicit to a degree.  But I'm going to cheer on the smart consumer who learns to avoid the pitfalls and not worry so much about those who fail to.

 

"Unwise" people will always be doing "unwise" people tricks.

 

 

Edited April 7, 2025 by hdporter

[MP80]

We agree to dissent to advance the field of credit and provide additional perspectives to those interested in it.

 

Of course, these banks will not prevail if the default rate is higher than the interest income. That is the whole situation, they need more unscrupulous ways to make money to stay ahead of the default rate than the income revenue.

Any revolving credit account is a product made to generate interest for the creditors, it doesn't matter how it cuts and slices; there is an ensnarement that pertains to its relevancy. 

 

The way to beat this artifice deception prompt to put you in a hole is to stay out of debt and settle the mindset of paying in full to eliminate any possible debt.

[ShawnPY1972]

On 4/5/2025 at 1:54 PM, Rogue said:

I was helping my parents with some financial issues last week and they show me a letter from Synchrony dated March 10, 2025. And it stated that all Chevron gas charge cards are going to 33.99% APR effective May 9, 2025. I actually thought this was a typo or April Fool's Day joke at first!  This is my parent's oldest card with 6+ decades of age, so I have always told them not to close it, I know there are better options for purchasing gas, however they barely buy one tank a month and always PIF before their statement cuts, so I am not going to have them change their routine and both of their FICO's are 800+ today.

 

This card was originally issued by Chevron U.S.A. thru their wholly owned subsidiary Chevron Credit Bank, N.A. but the card portfolio was unfortunately sold to GE Money Bank, N.A. back in December/2007.  Then GE Money Bank (GEMB) changed their name to GE Capital Retail Bank (GECRB) in October/2011.  And finally, GE Capital Retail Bank (GECRB) changed their name to Synchrony Bank in June/2014 with GE Capital spinning off Synchrony Financial with an IPO the following month, and here we are today.  I do have to say that Synchrony has been a nightmare to deal with for my parents, constant issues and problems with them and their websites! The only reason this card has survived is the age! My parents have no other Synchrony cards, and I have never had one other than being an AU on this card since I was in college. After all the issues my parents have had with Synchrony, I would never ever apply for one of their products or cards!

 

So, as a gas card, the APR on this card has always been absurdly high and my parents never pay interest, but this card going to 33.99% is just insane, especially since the cost of funds to Synchrony probably averages somewhere between 1-4% today. The APR structure on this card use to be tiered based upon "creditworthiness" and rates were calculated based upon a Margin + Prime Rate.  Then in September/2022, Synchrony blew-up their entire APR structure and ALL cards were charged a flat 29.99% APR with no more tiers and no more Margin + Prime Rate! After this change, as the Prime Rate fell, this card remained at 29.99% resulting in de facto rate increases. This structure is remaining in place; however, the current flat rate APR is now going from 29.99% (which use to be the card default rate) to an insane 33.99%.  Regardless of the APR, I would never recommend any Synchrony card and will never apply for one! And the Credit 101 lesson of the day here is always PIF!

 

I started off with a $300 limit in January 2024 and increased twice in the past twelve months to $1000.  I barely use my card and when I do I pay it off prior to the statement cycle date.   I don't carry a balance so the high interest rates are ok with me.

[Burgerwars]

If they pay in full the APR doesn't matter.

 

I used to have a collection of gas cards but all but one got closed for non use. The only exception is a Shell card I had that got converted to a generic Citibank MasterCard. I still use that once in a while to keep it active.

 

[coopert]

I more worried when will that bubble burst with consumer credit card debt $1.21 trillion as of the end of 2024, reflecting a significant increase over recent years. Many Americans are struggling with this debt, often making only minimum payments, which can lead to financial stress and difficulty in saving money.  33-35% interest and the median age of home ownership is at 40.

[swingline]

Be aware that some stations are charging up to $1 per gallon surcharge for using a credit card.

 

https://finance.yahoo.com/news/number-want-gas-stations-charging-170000929.html

[Flyingifr]

Do that to me and your CCTV cameras will see me driving away from the pump after not even stopping. No sale, cash or otherwise.