I am still a Delta Airlines fan. Spirit Airlines has never been high on my list. I used the airline twice, and it felt like I was on a metropolitan subway. What enticed me was the Bank of America Spirit co-brand card I signed up for in 2017. I like Bank of America but find that Spirit does not live up to the goal of being the lowest net price. And the call center? Give it a call, and you will lose your patience.
Every time I tried to use the Bank of America card at Spirit Airlines, I can find a better price with good old Delta Airlines and my American Express card.
Enough about me.
Spirit Airlines just arranged a second-chance finance option with CreditShop, a non-bank credit card issuer. CreditShop targets near-prime customers who could not make the BoA credit score cut-off.
The exciting strategy is that the underwriting workflow will qualify prospective accounts beneath the range of Bank of America credit scores.
Seeking Alpha reports:
- U.S.-based CreditShop is a non-bank credit card company which will complement Spirit’s existing credit card program by serving near-prime customers who may have been previously unable to obtain one of the airline’s co-branded cards.
- Partnership’s credit card program to launch in early 2021.
- CreditShop, a leading non-bank credit card company in the United States, will complement Spirit’s existing credit card program by serving near-prime customers. They may have been previously unable to obtain one of the airline’s co-branded cards. This will significantly expand access to Free Spirit’s industry-leading credit card program when the partnership launches in early 2021.
CreditShop currently issues the Mercury Mastercard. The pricing, at 25.15% to 28.15% with no annual fee, is fair for the market the card serves. CreditShop is not a bank, but it issues through First Bank & Trust, based in the thriving metropolis of Brookings, South Dakota.
First Bank & Trust’s parent company is Fishback Financial Corporation, an old established name in South Dakota dating back to founder Horace Fishback, in 1880. The date is significant because South Dakota only became a state in 1889. The Fishback family is in its fourth generation of ownership.
This is a good play for Spirit Airlines, and the second-chance financing option is rarely a wrong concept for a merchant. For CreditShop, a relatively new player finds a new airline partner. And for the consumers who seek budget airlines, this presents another option to finance.
For me, however, I will stick with Delta whenever the skies open again for business travel!
Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group