With banks hiking interest rates and fees and getting stingy with credit, BusinessWeek reports that Wal-Mart Stores Inc. (NYSE: WMT) has "held talks with Herbert and Marion Sandler, founders of Golden West Financial Group, about a new credit card that would offer lower interest rates and few of the onerous fees associated with traditional credit cards."Wal-Mart currently has a credit card offered in partnership with General Electric, but the interest rate can run quite high. A card financed by Wal-Mart itself would likely offer consumers a better deal.
The time would seem to be right for Wal-Mart to dive into this business and capitalize on the weak positions of the big banks that have been damaged by the credit crunch. But here's an idea for Wal-Mart: Call it something other than the Wal-Mart card, and keep your logo off it. Credit cards are something of a status symbol and a way that consumer pledge allegiance to brands and causes that are important to them: Nothing could be less cool than a Wal-Mart card. Call it something different, and lure people in with a great deal. That will reach a much broader market.
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Reader Comments (Page 1 of 1)
11-07-2008 @ 2:05PM
Rich Brulato said...
No one would want to whip out their Wal -Mart credit card on a first date or to pay for a business lunch!!!! Good idea that needs careful execution!!!
11-07-2008 @ 4:09PM
John said...
YEA YEA, I DO!!!!!
11-10-2008 @ 1:35PM
Roudy said...
I don't need a woman or any business that would think less of me if I used a Wal-Mart credit card to buy lunch or other various things. Wal-Mart is still helping the little person as well as themselves with this idea. What's wrong with that?
RoudMan