Wells Fargo To ‘Significantly Improve Credit Card Value Proposition’

Wells Fargo just had their Q1 earnings call, one of the key takeaways for our readers is the desire to improve the credit card value proposition for consumers. Charles Scharf (Wells Fargo CEO) had this to say:

As I’ve spoken about before, we’re underpenetrated in credit card given our customer footprint, and we’re working on developing a significantly improved value proposition that we can introduce to the market. And on the commercial side, we’re going after the middle market investment banking opportunity in a different way than we have previously. This includes joint accountability, investments in talent, name-by-name client prioritization and joint account planning.

The timing is interesting given that the Wells Fargo Propel World will be discontinued on the 19th. In the earnings call they also stated that additional benefits would be adding to the Portfolio by Wells Fargo checking account.

Hat tip to Econ0mist

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CEZ
CEZ (@guest_1178496)
April 17, 2021 22:48

All talk, no action. Move on.

Jj
Jj (@guest_1178162)
April 17, 2021 08:27

I closed my portfolio at Wells Fargo because they falsely denied me for saying I didn’t pay past account which I did always pay on time, after hour on hold they couldn’t find the account so they lose my business

Gus
Gus (@guest_1178131)
April 17, 2021 02:39

They can start by increasing everyone’s credit limit.

I still have a $500 CL on my first ever credit card. My only other WF card is at $2,300.

Meanwhile, I have a BoA card with $13,000.

SamL
SamL (@guest_1178143)
April 17, 2021 04:45

As long as my CL is at least $1.99, that’s all I need for WF.

Puli H
Puli H (@guest_1178156)
April 17, 2021 07:48

It’s actually $2.

SamL
SamL (@guest_1178292)
April 17, 2021 13:06

Aaarrgghh!! Not only have I been leaving money on the table, I’ve also been doing typing unnecessary extra typing.

zzcodi
zzcodi (@guest_1178218)
April 17, 2021 10:44

Is that a small balance credit? which WF card? Cash wise?

JohnnyBoyJr
JohnnyBoyJr (@guest_1179690)
April 20, 2021 10:16

How many months have you been able to consecutively pull that off? Is there a concern they will close your account for that?

Gerald
Gerald (@guest_1178482)
April 17, 2021 22:16

Have you asked them for an increase? Our WF cards have credit limits in like with other banks.

Juniorsdca
Juniorsdca (@guest_1178632)
April 18, 2021 10:47

This! ^ Wells Fargo is one of my oldest credit cards but they have never increased the original credit limit. They also don’t offer a whole lot of excitement and points earning opportunities with their credit card rewards, although I did just apply for the WF Propel card. I’m replacing my Chase Sapphire Preferred with that card and its $0 annual fee vs. $95 a year right now with Chase. I used to have a Portfolio Management account with WF with 2 mortgages, checking, savings, credit cards, etc (Like Chase Private Bank). Closed everything with them and went over to Chase after the fraudulent accounts scandal as I didn’t trust them with my money (terrible for a bank) and switched to Chase and Bank of the West. No regrets on that, but I did keep my WF Signature Visa credit card because it’s one of my oldest cards, but the points are $0.01 and I only use it once in a while to keep it active. WF needs to up the bonuses and earning rates as well as adding some co-branded cards to draw new people in. My American Express Gold is my current favorite for many reasons, especially the 4X points earning power. $0.01 per dollar just isn’t competitive anymore, especially when you can earn more than that even on a lot of no annual fee cards.

Gerald
Gerald (@guest_1181347)
April 22, 2021 21:46

@Juniorsdca, your points are worth 50% more for travel, just like CSR. Every couple of months, I’ve been getting deals for 10X points on $400 spend at places like supermarkets. I get it on both my Visa Signature and my wife’s Propel.

Dylan
Dylan (@guest_1178091)
April 16, 2021 22:36

Cool Wells Fargo, How about you start by approving more people first. I have cards with AMEX, Chase, Capital one, Discover, Citi, and BofA. Yet I’ve Tried multiple times and have never been approved for a Wells Fargo card. Guess they hate making money on swipe fees from customers who are extremely low default risk.

Sam
Sam (@guest_1178342)
April 17, 2021 15:01

I have above 800 credit, no outstanding balances, and got denied so they are definitely a lot more strict in their approval in some way. No idea what their criteria is but I am not spending another inquiry with them.

Gerald
Gerald (@guest_1178475)
April 17, 2021 22:10

Open a checking account, and you’re likely to get approved.

Julian
Julian (@guest_1177989)
April 16, 2021 19:24

He basically said it would be customer service based. I’m not really sure what that means other than well trained reps with customer friendly policies. If the card rewards aren’t attractive the no one will care about the service.

KJ
KJ (@guest_1178215)
April 17, 2021 10:42

You must have a Doctorate from Harvard in business to come to this conclusion. But seriously I don’t get why banks think CS means anything fi your card offerings are shit. Only people you’ll get are people who get a card when they open a bank account and are the type to freak out when a hotel puts a pending charge on their card.

Tina
Tina (@guest_1177979)
April 16, 2021 18:55

I love these posts about vague announcements that then spur rampant speculation, thirsty wishful thinking, and outrage about unrelated topics.

WFC’s share price thanks you for jumping on the hype train.

K
K (@guest_1177964)
April 16, 2021 18:16

Scharf was the CEO of Visa a few years ago, hopefully he can use his connections to get good deals for WF and maybe then we’ll see some more lucrative rewards?

Gerald
Gerald (@guest_1177963)
April 16, 2021 18:14

The WF Visa Signature is a very nice card for travel, worth 1.5 cents/points (like a CSR without the AF), and with a nice SUB. They just need some cards that are worth doing ongoing spend. The 10X offers they have every few months are nice, but they max out at 4000 points. I’d like to see them do something like the CFU, 1.5 points on everything.

Brutus
Brutus (@guest_1177983)
April 16, 2021 19:09

Isn’t the Cash Wise 1.5% back on everything?

Orin
Orin (@guest_1178064)
April 16, 2021 21:10

yes but freedom points can be used for more if u have a chase sap reserv

Gerald
Gerald (@guest_1178479)
April 17, 2021 22:14

If you’re referring to Pay Yourself Back, you’re right, but I haven’t used it because I use points for travel.

Vic
Vic (@guest_1178773)
April 18, 2021 15:31

If you use points for “travel” (as in 1.5cpp UR portal with CSR), you might want to reconsider your strategy.

PYB is 1.5 grocery which is basically cash.
Travel is 1.5 via UR portal which can have higher prices than other channels and you’re missing out on credit card spending points too.

1.5 PYB is way better than 1.5 UR travel portal.

Gerald
Gerald (@guest_1181356)
April 22, 2021 21:55

I’ve got more lucrative ways of paying for “groceries” than CSR, like Freedom Flex, where I’ve still got a bunch of the initial year’s $12.5K to spend, and Citi Dividend this quarter, with $6000 to spend at 5% back.

Gerald
Gerald (@guest_1178477)
April 17, 2021 22:12

The Cash Wise is cash. I’d like points, which are worth 1.5 cents for travel if you have the Visa Signature.

Banana hammock
Banana hammock (@guest_1177960)
April 16, 2021 18:12

1) Why isn’t Charles Scharf the CEO of Charles Schwab? The confusion would be exquisite.

2) Underpenetrated…heh

Orin
Orin (@guest_1177950)
April 16, 2021 17:52

i like penetrating them on their checking account

Banana hammock
Banana hammock (@guest_1177959)
April 16, 2021 18:11

Same, thanks for the $800 bucks WF!

Orin
Orin (@guest_1178940)
April 18, 2021 23:36

where else do you get paid to penetrate