Frequently Asked Questions | Synchrony Bank (2024)

FAQs

What is the Synchrony Bank scandal? ›

The Action alleges that Synchrony falsely represented that its consistent and disciplined underwriting practices had led to a higher quality loan portfolio than those of its competitors, but that, in truth, Synchrony relaxed its underwriting standards and increasingly offered private-label credit cards to riskier ...

While credit scores are very important, Synchrony Bank credit card approval depends on several other factors as well. For example, applicants need to have enough income to make payments on the card. Synchrony Bank will also look at existing debts when considering your application.

Yes, Synchrony Bank does a hard inquiry on your credit report whenever you apply for one of its credit cards. A hard inquiry usually results in a slight decrease in an applicant's credit score, but the effect only lasts for a short period of time.

Yes, Synchrony Bank is a member of the FDIC and deposits made into your Synchrony Bank account are insured up to $250,000 per depositor, per ownership category.

Fitch Ratings - New York - 05 Apr 2024: Fitch Ratings has affirmed all of Synchrony Financial's (SYF) and subsidiaries' ratings including its Long-Term Issuer Default Ratings (IDRs) at 'BBB-'. The Rating Outlook is Positive.

Is Synchrony Bank a reliable bank? Synchrony is a reputable bank with a history that can be traced back to 1932. Additionally, the money you deposit in a Synchrony Bank savings account, money market account or CD is covered under FDIC insurance—$250,000 per depositor, per bank, per ownership category.

The pros of banking with Synchrony include a top-tier high-yield savings account with a competitive interest rate and easy opening requirements, and a variety of CD terms and types. The cons of banking with Synchrony include no physical locations, no checking accounts, and limited services and products beyond banking.

We give Synchrony Bank 4.4 out of 5 stars after evaluating factors including its branch availability, account fees, interest rates and customer support. The bank scores highest for its CDs, savings account and overall experience and access. *Ratings are determined by our editorial review team.

More about Synchrony: Synchrony Bank is owned by Synchrony Financial, a Stamford, Connecticut-based consumer financial services company.

Synchrony Financial has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is.

Is Synchrony Bank a good company? ›

Synchrony Bank is a solid online bank with competitive interest rates on savings, money market, and CD accounts. It is a good option for consumers who are happy with their current checking account but want to earn a higher rate of interest on their savings.

What's the Synchrony Bank credit card credit score requirement? It depends on the credit card you are interested in. Most credit cards offered by Synchrony Bank are designed for people with fair (640 – 699), good (700 – 749) or excellent (750 – 850) credit.

“Synchrony issues some of the most problematic cards in the marketplace, with deferred interest traps that wallop struggling consumers with large amounts of retroactive interest and high-cost CareCredit cards pushed in healthcare settings,” said April Kuehnhoff, senior attorney at the National Consumer Law Center.

Synchrony Financial's threat of distress is less than 5% at the present time. It is unlikely to undergo any financial straits in the next 24 months.

Walmart felt that Synchrony's credit policies exposed them to too much risk, and they weren't in agreement with how Synchrony was managing the partnership. As a result, Walmart ended the relationship with Synchrony in 2019, and a new partnership was formed with Capital One.