Capital One Buying Discover: What it means for Credit Cards…

Capital One Buying Discover: What it means for Credit Cards…

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The Credit Pros

Hey credit Warriors welcome to the show And we have a story that came seemingly Out of nowhere at least for me and that Is that Capital One is buying discover Financial Services the bank behind the Very popular Discover It cards and That's one of the top cards I recommend For people new to the credit card game In fact I also do sometimes recommend The Capital One Platinum Card for people With you know low credit scores or who Are just starting out although Capital One in recent years has been targeting More than mid to high tiers with their Very popular V xcard anyway let's read a Little bit of the story so it was the Wall Street Journal that broke this news And the deal is supposedly worth $35 Billion here's part of their article Discover shareholders are set to receive 1.0 one92 Capital 1 shares for each Discover share representing a premium of About 27% based on discover's closing Price Friday after the deal closes Capital One shareholders will hold Roughly 60% of the combined company with Discover shareholders owning the rest The interesting thing is that capit 1 is Not just acquiring discovers credit card Customers but they'll also get their Savings accounts bank accounts and most Crucially their credit card Network you See Capital One cards run on Visa or Mastercard networks but discover has its

Own network the Discover network if you Own both the issuing bank and the Network you can take home a larger cart Of the merchant fees that get paid every Time the card is swiped according to the Wall Street Journal Capital 1 will Switch some of its cards to the Discover Network I'm not sure which ones but Apparently they will also in case you Are wondering if the Discover It Card Will now become the Capital One It Card Apparently not as reported in the Journal Capital One also plans to Maintain the discovered brand on the Cards and network assuming Regulators Sign off and the deal is consummated so As far as what this means for points and Miles and other credit card rewards we Don't really know anything apart from That the discover brand will remain and Some Capital One cards will switch to The Discover Network I love how the First thing the GU over at Doctor of Credit for was Will discover start doing Three pulls for credit card applications Referring to the fact that Capital One Typically pulls from all three credit Bureaus when you apply for one of their Cards but it'll probably be several Years before any changes take place so For now I would say it's going to be Business as usual however this is Interesting because it is the same path That chase took to becoming one of the

The Credit Pros

The biggest and best credit card issuers In the US loads of mergers with other Banks along the way so if I had to guess I would say that this is going to be Good news eventually for Capital One and Discover card holders or potential card Holders businesses operate more Efficiently at scale so it may give the Bank more Capital to offer bigger Bonuses and perks to compete with Chase City and others so for us I would say It's going to be a good thing all right Guys that is the video short and sweet If you're interested in the Capital One Venture X or any of the cards we Regularly talk about on our show do Click the link below to access my credit Card guide of course if you do use our Links it does help us out so we thank You very much if you do please subscribe To the channel for new credit card and Personal finance tips and tricks almost Every day and we'll see you next time Bye-bye

The Credit Pros

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