No matter where you stand on the company, your opinions may only end up being reinforced amid reports that it is eyeing a plan that would make it a major player in the financial services industry.
Wal-Mart has been involved in discussions about possibly offering a new, consumer-friendly credit card, according to Business Week.
The company is reportedly mulling the idea of introducing a card with moderate interest rates and relatively few fees. This type of card could be just what some cash-strapped and credit-starved consumers have been waiting for.
As you may have noticed, many banks have been significantly tightening up credit criteria in recent months, as well as hiking interest rates and changing terms on customers’ accounts.
Amid this challenging financial landscape, even consumer advocates may be willing to give a Wal-Mart card a chance.
“We always welcome any new credit cards if they offer a solid, low-cost product that doesn’t have trips and traps,” Travis Plunkett, legislative director of the Consumer Federation of America, told the news provider.
On the other hand, with credit card defaults on the rise, it remains to be seen whether the company could be courting more financial trouble by offering a new card without being choosy about cardholders’ credit scores.
“If Wal-Mart can figure out who to extend credit to and not lose their shirt, that would be a home run,” financial services consultant Philip J. Philliou told Business Week.
For its part, Wal-Mart is playing coy on the issue. Spokeswoman Linda Blakey told the magazine the company “is not pursuing these ideas at this time.”
Although this potential new offer may sound promising for consumers, be aware that many store cards offered by retailers have higher interest rates than those offered by banks – sometimes as high as 20 or 25 percent APR.
Wal-Mart already offers some financial services to its customers. People can apply for a store credit card and a Wal-Mart Discover card that offer benefits like three cents off gas at participating stations, no annual fees and fraud protection. Wal-Mart customers can also currently pay bills, cash and order checks, order credit reports, and open investment accounts through ING Direct.
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