If you’re a Wells Fargo customer, but don’t have a Wells Fargo credit card, be on the lookout for an uptick in offers from them. Though they lead the nation in lending, Wells Fargo credit cards account for a small portion of that, something the bank is looking to change. Of course, as with any credit card offer, consider it carefully against other cards that may be more competitive and better-suited to your needs.
Currently, the vast majority of Wells Fargo customers have a credit card. However, only 35 percent of them have a Wells Fargo credit card. It’s the other 65 percent that will be the target recipients of what looks to be an aggressive campaign to increase its share of credit card lending. That said, hopes are high that word will get around and the strength of the bank’s credit card offerings will attract non-Wells Fargo consumers as well.
Why is Wells Fargo not content leading the country in mortgages, small business loans, commercial real estate loans and auto loans? Because the profits on credit cards are so much greater. As reported by The Wall Street Journal: “The yield Wells Fargo generates on its credit card loans was 12.55% in the second quarter. A mortgage yields 4.23%, a commercial loan 3.69%, according to Wells Fargo’s second-quarter earnings release.”
Should you find yourself considering a new Wells Fargo credit card, make note of the interest rate they’re offering you, and review the rewards program carefully. Compare this credit card information to others on the market. A word of warning, though. If you find yourself already overwhelmed with credit card debt, or just recovering from it, think twice about applying for a new card. A credit card should be used as a tool to improve your long-term financial health, not make it worse. And keep in mind that just because you receive an offer in no way means you are guaranteed the card. You still have to apply, which will show up as a hard inquiry on your credit report whether you are approved for the card or not.