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

Frequent Contributor

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

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AMEX Platinum | Discover It $20.3k | Chase Sapphire Reserved $16k | Chase United $12k | AMEX SimplyCash Plus Business $11.6k | AMEX Schwab $9k | AMEX BCEP $8.2k | Citi Costco Anywhere Visa $8k | Chase Amazon Visa $8k | Chase Sapphire Preferred $7k | Chase Freedom $5k | Citi Simplicity $5k | Paypal Extras Platinum $5k | Wells Fargo $5k | Citi Best Buy $4.2k | Citi Visa Signature $3k | Care Credit $3k
Message 1 of 11
10 REPLIES
Contributor

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
Message 2 of 11
Established Member

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.

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Message 3 of 11
Valued Contributor

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...

 

 

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Message 4 of 11
Valued Contributor

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.

Message 5 of 11
Super Contributor

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

Message 6 of 11
Established Contributor

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.

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Message 7 of 11
Established Contributor

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.

Message 8 of 11
Established Contributor

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.
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Message 9 of 11
Frequent Contributor

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.

Message 10 of 11