Private label credit cards are non-bank, non-network credit cards. Mercator Advisory Group projects the Secured Card market at $430 billion in revolving credit with 5.3 million cards by 2021. It married the secured card to a private label credit card, creating a new class of credit card accounts. After the Card Act of 2009, regulatory direction scarred away these lenders and quality credit card companies like Bank of America, Capital One, Citi, Discover, US Bank, and Wells entered the market. It was not uncommon to find $500 credit lines that only had $75 in open-to-buy because accounts carried origination fees, booking fees, and special credit risk assessments. Before the Great Recession, hard money lenders charged sky-high fees to people needing credit. Secured cards have an ugly past but a bright future. If all goes well, and Mercator Advisory Group expects it will, Synchrony will have a first mover advantage as a secured issuer for retail stores.įirst, background on Secured Cards is here, and Private Label cards is here. Now, a breakthrough innovation for the credit impaired with Amazon, which will work wonders for those wanting to transact online but lack the necessary history to warrant a credit card. ![]() Since January, the firm has announced their expanded closed loop multistore credit card, settled a claim by Walmart as the portfolio moved to Capital One, announced renewals with Google and Amazon, and delivered a ROA of 2.8% for 2018 (10% better than forecast). No one is sleeping late in Stamford, CT these days as Synchrony comes up with yet another credit card win.
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