"It’s the price credit card companies will have to pay in order to boost their bottom lines: Even as Synchrony Financial’s charge-offs rose to $780 million in the first quarter of 2016 versus $668 million a year earlier, its net interest income—what it earns from charging customers on their unpaid credit card balances—jumped nearly 12% to more than $3.2 billion. That was fueled by a 13% increase in Synchrony’s outstanding loans to consumers."
"Synchrony issues branded credit cards with retailers such as Wal-Mart Stores. These tend to go to slightly riskier borrowers than many bank-issued cards. At the end of March, 28% of Synchrony’s credit-card loans were to borrowers with FICO scores of 660 or less. That compares with 18% for Discover and just 14% for J.P. Morgan Chase’s cards. But it isn’t as aggressive as Capital One, which had 35% of loans below that threshold".
Thanks for posting this. I think people apping for more credit should heed articles like this before getting in too deep. I saw someone post that they had something like 14 Synchrony cards. That is just too much. They shouldn't be surprised to get them canceled all at once.
I had two Synchrony cards and plan to get another late next year. I like to take it slow.