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Amazon launches a credit card for the ‘underbanked’ with bad credit

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Frequent Contributor

Re: AOC, Bernie Sanders skewer Amazon Prime's new credit card: We 'intend to outlaw it'

You'll notice that Warren isn't jumping on board.





Message 11 of 30
Senior Contributor

Re: Amazons New Credit Card


@Andypanda wrote:

And now the politicians  coming out against it.

 

https://www.foxbusiness.com/politics/aoc-bernie-sanders-amazon-prime-credit-card


There is so much that I would say if rules allowed me to.

 

I fear for the future is all I'm saying.

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Message 12 of 30
Senior Contributor

Re: AOC, Bernie Sanders skewer Amazon Prime's new credit card: We 'intend to outlaw it'

I love how everyone is so quick to jump on interest rates rather than focusing on the fact that lowering taxes on the "underbanked" would make them better able to actually pay in full...

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Message 13 of 30
Community Leader
Senior Contributor

Re: AOC, Bernie Sanders skewer Amazon Prime's new credit card: We 'intend to outlaw it'

I would be curious to know how much, in general, in taxes the "underbanked" pay right now. 

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Message 14 of 30
Regular Contributor

Re: AOC, Bernie Sanders skewer Amazon Prime's new credit card: We 'intend to outlaw it'

People like them like to live in an imaginary world where unicorns fly and we all poop rose petals.
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Message 15 of 30
Established Contributor

Re: AOC, Bernie Sanders skewer Amazon Prime's new credit card: We 'intend to outlaw it'


"Can you believe it? Amazon is issuing credit cards with 28% interest rates to "help" people with bad credit. This kind of greed makes the poor even poorer and @AOC and I intend to outlaw it." - Bernie Sanders


If someone is poor, I would think a credit card would be low on their list of priorities. 











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Message 16 of 30
Established Contributor

Re: Amazons New Credit Card

I wonder how loose the UW will be on these cards. For instance, will young derogs & DTI/UTI be overlooked in exchange for being more stringent about employment?











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Message 17 of 30
Moderator

Re: Amazon launches a credit card for the ‘underbanked’ with bad credit

Please remember to be apolitical in your comments to these articles. I thank you for your understanding.
"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

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Message 18 of 30
Valued Contributor

Re: Amazon launches a credit card for the ‘underbanked’ with bad credit


@gdale6 wrote:
Please remember to be apolitical in your comments to these articles. I thank you for your understanding.

I hope my comment was not political, but when certain people come out against a cards interest rate and vow to stop it, how can we comment about it? I agree we should not use the board to express political opinion.

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Message 19 of 30
Moderator Emeritus

Re: Amazon launches a credit card for the ‘underbanked’ with bad credit

Most of the underbanked are either no files or with dirt which probably drops them in the 300-600 range depending if they have had credit in the past.

Most of their debt probably won’t show up on a credit report to be honest if they have any... we are talking people who aren’t even wearing the numbers off their debit cards, we are talking people who don’t even have a checking or savings account.

I imagine like most secured products unless money is owed to the Fed (and sometimes not even then TBH, banks know the reporting rules to the IRS as well as anyone and monies left in a near zero interest account will never trigger a mandatory report) it will probably be a non-issue for underwriting.

If they are caught up enough to put down a cash deposit, you can almost certainly get the card.

While I am not a fan of Synchrony and I do somewhat wonder how many underbanked or unbanked Prime members there are, fact is I can’t see any downside.

Bernie and AOC do have a point: when we are talking the underbanked and worse, there is a decent chance they don’t understand compound interest; however, education is righteous, regulation here is not.

Crimeny I once had a loan at 120%ish APR when I was starting and when we are talking the PDL space where it isn’t APR it is fees (which is how they come out to like 400% when put into APR equivalence), so I really wonder if the people pushing this 15% cap really understand the market, or even the plight of the unbanked/underbanked... and these are the people they are allegedly trying to help.

Fact is more understanding is needed on all sides for this issue, but further tightening of the credit market via a cap is going to leave more people on the sidelines.

About the only way I see for the market to get out of it is they will create new secured products but instead of 1:1 it will be 10:1 or even 100:1 on deposit to limits... basically the banks make more money off the deposit to offset the losses.

Course was reading today that I can buy a house in Italy for about a buck... maybe that will come to the States in some form or fashion eventually and at that point credit /shrug.



        
Message 20 of 30
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