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Ally buys parent company of Merrick Bank

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Valued Contributor

Ally buys parent company of Merrick Bank

Ally’s Bet on Subprime Consumers Mints a Credit Card Billionaire 

 

"Merrick Bank, a CardWorks subsidiary, charges annual percentage rates of as much as 31.95%, compared with the 14.87% national average. The cards also can carry account setup fees of as much as $75."

 

It's expensive being poor.

27 FICO Scores + 3 VS3. MTG (Mortgage), AUT (Auto), and BKC (Bankcard) are scores 5,4, and 2 from the top.

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Message 1 of 7
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Moderator Emeritus

Re: Ally buys parent company of Merrick Bank


@CassieCard wrote:

Ally’s Bet on Subprime Consumers Mints a Credit Card Billionaire 

 

"Merrick Bank, a CardWorks subsidiary, charges annual percentage rates of as much as 31.95%, compared with the 14.87% national average. The cards also can carry account setup fees of as much as $75."

 

It's expensive being poor.


True but what's even more disappointing than that is that 31.95% is a bargain compared to some, there's at least two non-trivial tiers below that: ~100-120% APR, and then then PDL space.

 

 




        
Message 2 of 7
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Valued Contributor

Re: Ally buys parent company of Merrick Bank


@Revelate wrote:

@CassieCard wrote:

Ally’s Bet on Subprime Consumers Mints a Credit Card Billionaire 

 

"Merrick Bank, a CardWorks subsidiary, charges annual percentage rates of as much as 31.95%, compared with the 14.87% national average. The cards also can carry account setup fees of as much as $75."

 

It's expensive being poor.


True but what's even more disappointing than that is that 31.95% is a bargain compared to some, there's at least two non-trivial tiers below that: ~100-120% APR, and then then PDL space.


That's insane. I had a friend who was rolling over payday loans due to a gambling problem. Keyword 'had'... but not before lending $200 for groceries and etc. that I, of course, never got back.

 

Does it seem to you like there has been a marked increase in targeting subprime over the past year? Maybe it's just because I've been paying closer attention things like credit and payment processing in the news.

 

I'm also seeing that 'Afterpay' no-interest installment payment option at all kinds of stores online - especially cosmetics and fast-fashion, like this woman also found.

27 FICO Scores + 3 VS3. MTG (Mortgage), AUT (Auto), and BKC (Bankcard) are scores 5,4, and 2 from the top.

Keeper of the Scrolls of ResilienceEQ FICO Resilience Index Score Leaderboard

48 forum members have shared this new credit score. Share yours today!

Message 3 of 7
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Moderator Emeritus

Re: Ally buys parent company of Merrick Bank

I think more people are aware of it similar to how more people know of credit card rewards at the start of this decade than at the start of the last one.

 

To your point though, after the success of Prosper and Lending Club in the early part of last decade, there has been a blitz on others coming up with newer financing options to try to cash in on the bonanza that is the American consumer, especially in the formerly blue ocean market that was the sub-620 borrower.  Until maybe 2005 or 2006 nobody was servicing that market but by 2010 there were a bunch of companies some of which are still quietly around though you hear their ads on some city radio stations still.

 

It's probably a mix of both but most of the bottom two tiers you don't hear much of at all except when a state Attorney General is filing a lawsuit.  End of the day though when I had a cashflow shortfall and was sub-600, I could get a loan from one of them.  

Of course that decision still haunts me as a CFA nearly 10 years later for all that I paid it off in six months.  Also I used to work for that company too, twice. :/




        
Message 4 of 7
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Frequent Contributor

Re: Ally buys parent company of Merrick Bank

My APR rate on my Merrick Bank cc is 26.95.  There is no AF attached to the cc nor was there a set-up fee.   They've been a great addition to my small line-up in my rebuild, easy to work with.  I don't keep a balance on the cc, though.

 

My question to anyone on this site who has a Merrick credit card is:  With Ally buying Merrick, are those auto CLIs every two or three months going to end?  I've read on here many people get auto CLIs pretty frequently from Merrick.  I doubled the CL after seven months to $1,400.  At the end of April, I will hit three months since the double your line  CLI, and I was looking forward to receiving an auto CLI.  They only give out auto CLIs.  You can't request one. 

 

Has anyone had an auto CLI in the past month or so since this acquisition was announced, or have you called and asked about the  CLI process going forward?

Open Credit Cards:
Green Dot Primor Secured (5/18) - $450 CL (CLOSED 2/2020)
Capital One Platinum (8/18) PC'd to Quicksilver (9/19) - $800 CL
Capital One QuicksilverOne (3/19) - $1800 CL
Merrick Bank DYL VISA - No AF (6/19) - $1400 CL
Discover it Cash Back (9/19) - $1300 CL
Amazon Prime Store Card (4/20) - $5000 CL
NFCU cashRewards (4/20) - $1500 CL
BB&T Spectrum Cash Rewards (5/20) - $3500 CL

Experian FICO Score - 8/2018: 528

Experian FICO 8 Score - 9/2020 - 672
Equifax FICO 8 score 9/2020 - 674
TransUnion FICO 8 score 10/2020 - 658
Message 5 of 7
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Super Contributor

Re: Ally buys parent company of Merrick Bank


@Jannelo wrote:

My APR rate on my Merrick Bank cc is 26.95.  There is no AF attached to the cc nor was there a set-up fee.   They've been a great addition to my small line-up in my rebuild, easy to work with.  I don't keep a balance on the cc, though.

 

My question to anyone on this site who has a Merrick credit card is:  With Ally buying Merrick, are those auto CLIs every two or three months going to end?  I've read on here many people get auto CLIs pretty frequently from Merrick.  I doubled the CL after seven months to $1,400.  At the end of April, I will hit three months since the double your line  CLI, and I was looking forward to receiving an auto CLI.  They only give out auto CLIs.  You can't request one. 

 

Has anyone had an auto CLI in the past month or so since this acquisition was announced, or have you called and asked about the  CLI process going forward?


I don't have the card but based on observing other card buyouts it's going to depend on what the new buyer wants to do. You'll have to wait and see, unfortunately. 



Last HP 09-14-2020



Message 6 of 7
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Valued Member

Re: Ally buys parent company of Merrick Bank

so my Merrick Bank Card will now be an Ally Bank Credit Card?

 

Message 7 of 7
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