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Frequent Contributor
Razeus
Posts: 387
Registered: ‎04-02-2012

What would you do if Wells Fargo bought out Discover Card?

Rumors are circulating.

 

http://www.marketwatch.com/story/discover-makes-sense-for-wells-fargo-analyst-2012-09-05

My Wallet:
Discover It $11,000 | Chase Freedom $5,000 | AMEX BCE $3,000 | Paypal Extras Platinum $5,000 | Wells Fargo $1,000 | AMEX Zync NPSL
Contributor
firesoul453
Posts: 147
Registered: ‎08-24-2012

Re: What would you do if Wells Fargo bought out Discover Card?

Not sure, I don't have a good feeling about it.

 

More competition is better, and there definetly isn't too much competiton for network processors (Just imagine if amex went unchallenged back in the day!)

 

But not sure. I don't think it would end up helping me (the end consumer) in any way.

 

 

 

 

My ultimate credit wish,
a JP Morgan Palladium card
Established Member
MCHammerFan
Posts: 22
Registered: ‎04-18-2012

Re: What would you do if Wells Fargo bought out Discover Card?

I don't have a good feeling about it either, and why would Discover want to expand into the student loan business? Student loans these days aren't exactly "AAA" material.

EXP 787 Equifax 779 TU 768
Valued Contributor
jamesdwi
Posts: 1,434
Registered: ‎09-16-2011

Re: What would you do if Wells Fargo bought out Discover Card?


MCHammerFan wrote:

I don't have a good feeling about it either, and why would Discover want to expand into the student loan business? Student loans these days aren't exactly "AAA" material.


There is good money to be made on less than AAA rated loans... especially with students that may only think about what they want and not what it costs long term, and So will carry a balance despite the 25% interest rate, " its only $25 a month"  for the reset of my life, but I will get a good job and pay it all off...

 

 

Cards: Chase Southwest 20k & CSP 10k & Amtrak 4.6k, & Freedom 3.3k & Slate 3.3k, FNBO DISC 14.9k Oregon Duck 5k, & AMEX BCP 15k & AMEX Hilton Surpass 7.5k & AMEX Zync NPSL, Sams Club Discover 10k, Paypal Extras MC 6k, CapOne 2.5k, CapOne 750, Amazon 3.9k, Walmart 4.5k, Citi Simplicity 7k, HHonors Gold 1k (moved 5k CL to Simplicity), Discover IT 6.5k and a nice stack of store cards.
Last APP 4/26//2014 no plans for new credit I think I have enough.
Valued Contributor
trumpet-205
Posts: 2,177
Registered: ‎11-11-2010

Re: What would you do if Wells Fargo bought out Discover Card?

From business standpoint, Discover-WF alliance/merger certainly makes sense.

 

As a consumer though, I hope not.

In My Wallet:
Citi Forward (12/2010) | Citi TY Preferred (05/2011) | Chase Freedom (11/2011) | GECRB/PayPal (05/2012)
Discover it (07/2012) | AMEX BCP (09/2012) | TD/Target REDCard (10/2012) | Chase Ink Classic (11/2012)
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Valued Contributor
jsucool76
Posts: 2,770
Registered: ‎12-11-2011

Re: What would you do if Wells Fargo bought out Discover Card?

I bank with wells and have a card with them, so if it bumped up their cards and made them better I would certainly be for it....whether or not it would actually do that I am uncertain about

Wallet: Capital One Cash Rewards 3500CL, Wells Fargo Cash Back College Visa: 900CL, Paypal Smart Connect: 1286CL, Walmart Discover: 2000CL, UPromise Mastercard: 1000CL, Chase Slate: 500CL, Discover IT: 2000CL, Citi Forward: 1500CL, Bank Of America Student Travel Rewards: 700CL
Established Contributor
Cdnewmanpac
Posts: 767
Registered: ‎01-16-2012

Re: What would you do if Wells Fargo bought out Discover Card?

Federally backed student loans can only benefit the lender. If the borrower defaults, the lender is compensated by the government. Plus, WF's student loan profile leans heavily towards parent-initiated "plus" loans, med school loans and loans for traditional four year undergraduate education (ie not U of Phoenix). They are a relatively conservative lender when it comes to student loans.

As for the OP's question, I'm indifferent. I bank with WF due to wife's long-standing relationship with them and had a secured card with them for a while. Their underwriting is very computer-driven, so recon is virtually impossible. If it meant linking my discover to checking/savings/mortgage accounts, great. Otherwise, no big deal either way.

In wallet: Ink Plus 10k, AMEX TE 25k. In bag: CSP 16k, USAA WMC 15k, Hyatt 13k, United MPE 12k, AMEX HHonors 3k. In SD: Cap 1 QS 5k, Discover IT 7k. FICO 08 says my EQ is now 844, was 510 in 2010.
Established Contributor
djrez4
Posts: 504
Registered: ‎08-28-2012

Re: What would you do if Wells Fargo bought out Discover Card?

I like my Discover where it is, thank you.  When Capital One bought out ING's American business, I was not happy.  Thankfully, they haven't messed it up, yet.  (other than screwing with the website to make it "better")

 

WF charged fees on a closed account and sent me to collections back in 2003.  I'm not a fan.

Established Contributor
CruzImperial
Posts: 863
Registered: ‎07-04-2012

Re: What would you do if Wells Fargo bought out Discover Card?

I surely hope this not happens. not that I care but merging them would not bring us much benefits if any.
Fico Scores: . Walmart TU 748 . App free since Aug 2013 .

Cap One Journey 500 | Discover IT 1k | GE Home Design 5.6k | GE HHGREGG 5k | Amex Zync NPSL | Amex BCE 6k | Citi Forward 4.2k | Citi Dividend 3k | GE BrandsMart 1k | GE Lowes 8.5k | Discover Walmart 6k | Barclays Apple 2.5k | BoA CR 800 | CSP 7.2k
Frequent Contributor
LionLaw
Posts: 258
Registered: ‎06-10-2012

Re: What would you do if Wells Fargo bought out Discover Card?

As a consumer, I don't think we'd see too much difference.

 

The Discover brand and product line would continue on basically untouched.  In addition, Wells Fargo might start issuing WF Discover cards.

 

I think the only real difference we'd see as consumers is that WF's debit cards would probably be on the Discover network instead of Visa.  I think WF would probably keep issuing the Visa CC's they currently offer, but I guess it's possible that they'd be discontinued.

 

I have a WF Visa and a Discover, and I'm very happy with both; I hope neither one gets changed around too much.


Starting Score: 617 (EQ 6/10/12)
Current Score (8/28/13): EQ: 691 EX: 706 TU: 700
Goal Score: 700

Discover it $4,500 (02/2001); Amex PRG (Backdated to 01/2006); Amex ZYNC (Backdated to 07/2006); Wells Fargo Cash Back Visa $5,500 (12/2011); Citi Diamond Preferred MC $2,000 (07/2012); B of A Cash Rewards Visa Signature $5,000 (02/2013)


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