cancel
Showing results for 
Search instead for 
Did you mean: 

New Walmart Credit Partner

Estimate your FICO® Score range for free

FICO® Score Estimator

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
Established Member

New Walmart Credit Partner

I have a walmart credit card issued by Synchrony.  I have read that Walmart will not renew their partnership with Synchrony and will instead employ Capital One for credit cards.  My question is this:  Will my credit card convert to a Cap1 card or will it stay with Synchrony?  I cannot find information on the web about this.

 

 






In the garden from 11/7/2018 until ?
Message 1 of 210
209 REPLIES 209
Frequent Contributor

Re: New Walmart Credit Partner


@Melycious wrote:

I have a walmart credit card issued by Synchrony.  I have read that Walmart will not renew their partnership with Synchrony and will instead employ Capital One for credit cards.  My question is this:  Will my credit card convert to a Cap1 card or will it stay with Synchrony?  I cannot find information on the web about this.


 

In my experience, when banks sell their credit portfolio, eventually all of the customers get moved over to the new bank.

 

Depending on one's relationship history with the new bank, it could be either a way in, or a way out. For example, I used to have a large business and personal presence with Citi. At some point after the financial crisis, the relationship was abruptly terminated, without cause. It was widely reported that Citi had essentially culled a large portion of their portfolio, most likely due to the lack of supporting deposits, at the time.

 

However, I've had a Best Buy card for years; and when HSBC sold that portfolio to Citi, I ended up back with Citi, without any apparent side effects. Although, I haven't yet begun to apply for any other Citi cards, mainly due to the fact that my entire positive Equifax credit file had vanished, for a while, and came back all messed up. It took several months just to get Equifax to get my file back in order; and since it has become arduous to deal with Equifax, and their largely broken systems... I'm staying away from anything to do with them, for the time being.

 

I've also had it work the other way. HSBC sold one of my accounts to US Bank, as well; but, US Bank just closed it, citing a past relationship... which was not with them. In fact, I had never before had any account with US Bank. However, the HSBC account that was sold, had been caught up in a major breach, just prior to the conversion; so it ended up being a misunderstanding that US Bank unfairly penalized. Furthermore, the last time I applied for a credit card with US Bank, they again cited a past relationship... which they have now apparently adopted as their own.

 

So, I would suspect that as long as the relationship is good with the current account, that the transition will be smooth... perhaps even if the new bank is personally toxic. But, it also partially depends on the current climate, and how the markets are driving the availability of credit, or the lack thereof. Ultimately, everyone's situation is subject to their own relationships.

Message 2 of 210
Moderator

Re: New Walmart Credit Partner

OP, at this point given the recent litigation issue, nothing is definitive.

So, pending the outcome of that, part or all of the existing portfolio could stay with SYNCB or potentially go to Capital One.

There's a recent article on the latest developments:

https://ficoforums.myfico.com/t5/Credit-in-the-News/WalMart-sues-Synchrony-for-800m/td-p/5399387
Message 3 of 210
Established Member

Re: New Walmart Credit Partner

Yes I have read every article to date and none cite what will happen to current card users.

I have a Cap1 card that is in good standing so my relationship with them is fine.  My actual worry is will interest rates change and Account Age be affected.  I have never had a card that has gone through this so was just wondering what to expect. Thanks for your replies Smiley Happy






In the garden from 11/7/2018 until ?
Message 4 of 210
Moderator

Re: New Walmart Credit Partner

Sync and walmart aren't getting along to well atm.. So wouldnt suprise me if Sync doesn't sell their customer data to Cap1.. Although contacts could be in place where they are forced to convert them, etc.  Should be a nice show to watch.

Chase | Citibank | Amex | BofA | PenFed | NFCU | Discover | 5/3rd | Synovus | Commerce | FNBO | Union Bank | Regions
Message 5 of 210
Frequent Contributor

Re: New Walmart Credit Partner


@CreditCuriosity wrote:

Sync and walmart aren't getting along to well atm.. So wouldnt suprise me if Sync doesn't sell their customer data to Cap1.. Although contacts could be in place where they are forced to convert them, etc.  Should be a nice show to watch.


Yes. Get your popcorn ready.

 

Although, I think that Sync just wants to be fairly compensated for selling the portfolio; which, is not at all unreasonable, considering the size of it.

 

It seems to me that the termination compensation was either already in their agreement with Walmart, or is missing entirely. Either way, Wally world knows they have to pay, and is having a hissy-fit about paying. Wouldn't you know, Walmart acting just like its own customers.

 

As if any company can afford to give up their largest contract without compensation. This is not a one-off fulfillment contract, that can be cancelled on a whim. This is the kind of thing that would likely sink Synchrony Bank, if they didn't come out of it with at least a couple hundred million, and I would suspect they're probably pining for closer to a billion (or more) in compensation, for their troubles.

 

Ultimately, an independent arbiter needs to decide what is fair. (try finding one) But, the idea that anyone owes Walmart the ability to unilaterally cancel major contracts, just because they are too big to fail, and deserve to be treated better than anyone else in the same situation - is ridiculous.

Message 6 of 210
Valued Contributor

Re: New Walmart Credit Partner

All benefits should stay the same, if you are in good history with syncrony, and also capitalone. CapitalOne will want to make the transistion as smoothly as possible. The tradeline may change on your credit report, but open date should remain the same. Customer Aquistion is expensive, they don't want to lose a customer they just paid for. Walmart credit cards are all above 20% APR, so there is no real reason to see any changes to the card holder APR's. Capitalone will have reviewed the accounts to see the performance of the card holders across all card holders so they won't make any drastic changes to the acounts for at least 6 months or more likely a year or more if everything stays in good shape. But as some of us here are outliers of the credit world, with Excessively high limits,  (guilty 10k here). If we poke the bear or have any issues with CapOne or other creditors, we can Look forward to Balance chasing and CLD, until are limits are more in line with others. 

Also the friendly text or voice chats with customer service or credit specialists will go away, no more ask nicely and go from a $500 limit to $5000 in 5 minutes. Future CLI's will follow CapOne's patterns. 

 

TL;DR In the end, make your payments, keep your credit reports clean, and use the card and all should be good. 

Cards: Chase Southwest 20k & CSR 17k & CSP 10k & Freedom 6.6k & FNBO 30k Oregon Duck 5k, & AMEX BCP 32.5k & Amex Magnet 15k&amg; Hilton Surpass 7.5k & Delta Gold 12k & Zync NPSL, Fidelity AMEX 17k Commerce5.9k & Cash Forward 7.5k & Sams Club MC 20k, Paypal Extras MC 10k, Paypal Credit 7.25k CapOne Venture 15k, QS 2.5k, QS 750, Amazon 10k, Walmart 10k, Citi Simplicity 18k, Discover IT 23k and a nice stack of store cards.
Marcus Loan. 30k second marcus load 15k.
Message 7 of 210
Frequent Contributor

Re: New Walmart Credit Partner


@Melycious wrote:

I have a walmart credit card issued by Synchrony.  I have read that Walmart will not renew their partnership with Synchrony and will instead employ Capital One for credit cards.  My question is this:  Will my credit card convert to a Cap1 card or will it stay with Synchrony?  I cannot find information on the web about this.

 

 Noooooooo! Say it ain't so!Smiley Surprised


 

BK CH7--Filed September 25, 2018--D/C Jan.4, 2019
{FICO8 Feb.12, 2019--TU 580--EX 600--EQ 626}

Credit One Visa ($500 now $700) Nov. 2018
SelfLender (2 year) Nov. 2018
Capital One Platinum MC ($2000) Jan. 2019
Target RedCard ($500) April 2019
Venus Comenity ($500) May 2019 no HP


FICO 8 SCORES: 06-02-2019616 TU613 EX638 EQ
Message 8 of 210
Contributor

Re: New Walmart Credit Partner

I have a reverse-real-world example. I had a Capital One Furniture Row Card for a few years, about 6 months ago I got notified that Furniture Row was changing the card financier to Synchrony Bank and that my current card would be closed in a few months. I had to apply for a new card all over again through Furniture Row/Synchrony Bank & Cap1 just closed my older card account about 2 weeks ago on my report. My guess is it might end up just like that.




EX: 694 (F8)(14inq) | TU: 691 (VS3)(3inq) | EQ: 699 (VS3)(6inq)
BK Ch 7 Discharged 2015 | x1 Paid collection | x1 30 day late
17% Utilization | AAoA: 2yrs 3m | Updated: Aug' 2019
Message 9 of 210
Frequent Contributor

Re: New Walmart Credit Partner

Sometimes, when buying a credit card portfolio, a bank will sift through the customers, to get the pick of the litter. Or, to mitigate risk.

So, while some customers will experience a smooth transition, others will just get their accounts closed, in the transition.

It could be something as simple as, taking everyone with a credit score above 680, for example. Higher or lower depending on their risk tolerance.

It can also be taking everyone within a certain balance threshold.

The point is that, it just depends on whether the new bank thinks they can make a profit, without taking immediate losses.

So, they weed out accounts based an an arbitrary set of standards... and you either get a new card, or you don't. But, it doesn't mean that you don't qualify for the card. It just means that the new bank wasn't willing to pay a commission for certain accounts, in the deal.
Message 10 of 210
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.