WebBank is a financial institution that issues credit cards and other financial products primarily to brands that are not directly involved in banking. It is similar to the Synchrony Bank or the Comenity Bank, which are behind many co-branded credit cards for retail chains.
Founded in 1997 in Utah, WebBank is active in the traditional banking business. With respect to credit cards, several products are issued aimed at those with short credit histories, also known as “thin” credit records. In fact, NerdWallet recommends various offers from its brand partners for searchers Starter cards or alternative cards.
So the WebBank is a legitimate bank and it can do business for sure. This does not mean that all products – or those of its partners – are suitable for you or that you will have a good experience. But as with other banks, there are extensive legal requirements at the federal and state level. The bank deposits are, for example, with the Federal Deposit Insurance Corp. insured.
Are WebBank Credit Cards Good?
Credit cards issued by WebBank are not mainstream cards. They are intended for those with credit problems, especially those who do not have enough credit to qualify for other credit cards. NerdWallet recommends several of these cards for people in this situation. Here is a selection of the marketing partners for whom WebBank issues cards:
Petal® 2 “Cash Back, No Charges” Visa® Credit Card
To determine eligibility for the card, the WebBank may choose to not only rely on credit scores, but instead use a proprietary underwriting system that takes things like income, expenses, savings and debts into account. The card reports payments to the three major credit bureaus.
The $ 0 *-annual fee Jasper Mastercard® is designed for professionals who have no previous credit experience. There is no deposit and it is possible to obtain the card with no credit score or history.
In some cases, you don’t even need a Social Security number right away (although you may need to provide one). When applying, you can instead provide passport and visa information, as well as proof of U.S. income. The company determines creditworthiness based on things like Debt-Income Ratio.
The Jasper Mastercard® reports payments to two of the three major credit bureaus, TransUnion and Equifax, but not to Experian.
AvantCard credit card
To get that AvantCard credit cardyou need an established credit rating, even if it is a limited or fair credit rating (FICO scores of at least 630). And while there is no deposit, the card has an annual fee of $ 39and it doesn’t deserve any rewards.
However, in addition to your credit scores – including your income and debt – the WebBank can also consider factors to weigh up your creditworthiness, and the card will check in with all three of the credit bureaus. And while the $ 1,000 maximum credit limit is low compared to other cards in this category, the company may evaluate your account from time to time and may offer you a higher limit.
In short, it’s an OK option for those with limited credit, but for anyone with fair credit or higher can do better. Also, at the time of this writing, there have been a handful of states where this map is not available.
More about the WebBank
In addition to credit cards, Salt Lake City-based WebBank offers traditional banking services as well as financing and credit for private customers through other brands. For example, WebBank also works with well-known brands such as Dell Financial Services, PayPal, Thimble and Yamaha. WebBank is also an issuer of unsecured personal loans, loans for small businesses and loans for automatic refinancing through the LendingClub.
WebBank’s parent company is Steel Partners Holdings LP, headquartered in New York. In addition to banking, Steel Partners is active in industrial products, energy, defense, direct marketing, logistics and more.