dcsimg Chase Becomes Largest Credit Card Company in U.S. with WaMu Acquisition - indexcreditcards.com

Credit Card Calculators

How long will it take to pay off my credit card?

In the News
  • "As comprehensive a list as you'll find of all the credit card offers on the table now."

Chase Becomes Largest Credit Card Company in U.S. with WaMu Acquisition

by Peter Andrew
Chase Becomes Largest Credit Card Company in U.S. with WaMu Acquisition

When JP Morgan Chase bought the assets of the failed bank Washington Mutual for $1.9 billion last week, it became the second biggest bank in the country behind Bank of America. It also became the largest credit card issuer in the United States, at least in terms of outstanding loan balances.

Washington Mutual purchased the credit card company Providian in 2005, and began marketing cards under the WaMu brand as well as being the issuer for credit card partners such as retailers, associations, sports teams, and more. With the WaMu acquisition, Chase not only increases its customer base, but it buys these contractual relationships with outside partners, a valuable asset in the competitive credit card market.

While the credit card market remains competitive, Chase’s acquisition of WaMu — coupled with today’s news that Citi will buy Wachovia — means the market has consolidated further, with even fewer players dominating the lion’s share of the market. This is probably not currently a concern to regulators who are preoccupied with stabilizing financial markets, but over time it could mean less choice for consumers as it becomes more difficult to gain credit and also avoid the higher interest and fees that most of the major issuers offer.

Disclaimer:The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we cannot guarantee the accuracy of the information in this article. Reasonable efforts are made to maintain accurate information. See the online credit card application for full terms and conditions on offers and rewards. Please verify all terms and conditions of any credit card prior to applying.

This content is not provided by any company mentioned in this article. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any such company. CardRatings.com does not review every company or every offer available on the market.

Published  (Modified )

Share this article with: