Target shopping its customer credit card portfolio to lenders

By , CardRatings contributor
  • Google +
  • Twitter
  • Facebook
Target to sell Red Card accounts

The largest remaining retailer-issued credit card may find itself on the auction block, according to news reports. Target announced that it intended to sell its consumer lending portfolio, including its distinctive Red Card store accounts and Red Card Visa credit card accounts.

Company officials claim the sale would allow managers to focus more closely on store operations and on market share growth in the years ahead. Wall Street analysts noted that unloading as much as $6.7 billion in consumer debt would significantly reduce the company's long-term risk.

Target has built a reputation for offering Red Card store accounts to consumers with limited credit histories and to consumers attempting to repair their credit. Company officials declined to speculate on whether a third-party lender would continue to offer the same kind of lenient account approvals, or whether credit card payments would continue to be accepted at stores after the portfolio's sale.

In recent years, many retailers have outsourced their credit card operations to white label lenders such as GE Money Bank and HSBC. Target's departure from direct-to-consumer lending leaves Nordstrom as the highest profile retailer that still operates its own charge account program.

0 Responses to "Target shopping its customer credit card portfolio to lenders"

No Comments

Leave a Comment
About Our Ratings ×

Our editors rate credit cards objectively based on the features the credit card offers consumers, the fees and interest rates, and how a credit card compares with other cards in its category. Ratings vary by category, and the same card may receive a certain number of stars in one category and a higher or lower number in another.

The ratings are the expert opinion of our editors, and not influenced by any remuneration this site may receive from card issuers.

Advertisers in our database are highlighted, and advertisements include an option to apply using links on our site. CardRatings.com may be compensated by companies mentioned on the site when a user's application is accepted or approved by such companies.

How do your cards stack up?

Compare your card starting here


Featured Partner Cards