What Is Synchrony Bank? Are Synchrony Bank Credit Cards a Good Choice?

If you’ve ever been pitched a store credit card while shopping for items like clothes, furniture, sporting equipment, or gasoline, it likely came from Synchrony Bank. This bank is known for its co-branded credit cards, designed to appeal to specific consumers with ties to store brands and gas stations. Many of these cards come without an annual fee and offer attractive rewards. Synchrony credit cards could benefit those interested in earning and using rewards linked to specific brands.

Synchrony Bank manages a significant collection of credit cards formed through partnerships with various retailers. Some of these cards provide better value and utility than others. This article will overview Synchrony Bank and examine its comprehensive range of credit card options available in 2024.

An Overview of Synchrony Bank

Synchrony Bank, located in Utah and insured by the Federal Deposit Insurance Corporation (FDIC), has been influential in consumer financial services for over 85 years. It offers various financing options, including partnerships with major retailers like Amazon, Walmart, and eBay. Synchrony categorizes its services into three main areas: retail credit cards, CareCredit for healthcare financing, and promotional financing for large purchases.

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Beyond its financing solutions, Synchrony manages over 80 million active accounts. It is the top issuer of private-label credit cards in the United States, issuing over 120 branded and store cards. If you have a store credit card from a well-known retailer, it is likely issued by Synchrony.

Additionally, Synchrony provides traditional FDIC-insured banking products such as high-yield savings accounts, money market accounts, and certificates of deposit (CDs). These products are attractive to consumers seeking savings options with low fees. The blend of retail-focused financial services and high-yield savings makes Synchrony a versatile choice for consumers and retailers.

With extensive experience in consumer finance, Synchrony continues to offer customized financial products across various industries, benefiting individual consumers and retail partners.

Who Should Consider Synchrony Bank?

Synchrony Bank is well-suited for consumers who value flexibility and are interested in high-yield savings without the structure of traditional banks. It benefits those who use other institutions for their primary checking needs but seek competitive rates to save money. Synchrony provides high-yield savings accounts and CDs without monthly fees, appealing to individuals aiming to increase their savings.

The bank primarily operates online with minimal physical locations, making it a good option for customers who do not require face-to-face banking services. Customers can handle their banking needs through phone, online platforms, or a network of no-fee ATMs.

Furthermore, Synchrony’s collaborations with various retailers offer advantages to consumers who utilize store credit cards, particularly those who need financing for retail purchases. Their cards frequently include special promotions and deferred interest financing options, which are practical for distributing payments over time for substantial purchases or medical expenses.

Synchrony Bank meets the needs of those seeking diverse financing options, especially in the retail and healthcare sectors. However, it does not provide checking accounts or other comprehensive banking services.

Are Synchrony Bank Credit Cards a Good Option?

Synchrony Bank credit cards may be a viable choice for those aiming to establish or improve their credit, especially since many store-branded cards are more accessible to people with limited or fair credit histories due to lower qualification requirements. However, there are significant disadvantages to consider.

A primary drawback of Synchrony’s store cards is their typically low credit limits, limiting buying power and negatively affecting credit utilization ratios. Furthermore, these cards often carry high annual percentage rates (APRs), leading to substantial interest charges if balances are not fully paid monthly. Additionally, many of these cards are “closed-loop” products, usable only at specific retailers, which reduces their utility. For instance, the Amazon Prime Store Card and the Lowe’s Advantage Card are only valid at their respective stores, making them less versatile than general-use cards.

While the rewards and benefits of these cards can be appealing, such as the Sam’s Club Mastercard offering 5% cash back on gas purchases, the rewards programs are typically specific to certain retailers. They may have limitations on how and where the rewards can be redeemed.

In short, while Synchrony credit cards can help build or repair credit, their restricted use, low credit limits, and high APRs may not suit those looking for flexibility and extensive rewards.

Top Synchrony Bank Credit Card Options

Top Synchrony Credit Cards

Synchrony offers various Synchrony-branded credit cards, including several $0-annual-fee options widely accepted anywhere Mastercard is used. Popular ones include the Preferred, Plus, and Premier cards, actively promoted for their broad utility.

The Premier World Mastercard from Synchrony stands out among these offerings. With its 2% cash back on every purchase, this card is considered one of the top performers in the flat-rate rewards category. However, to qualify for this card, applicants need excellent credit. It is also worth noting that the Premier World Mastercard does not offer initial incentives such as a sign-up bonus or a 0% introductory APR, features that some competitor cards might provide. Here’s a detailed overview of each card:

1. Synchrony Preferred World Mastercard®

The Synchrony Preferred World Mastercard® is a no-annual-fee card that offers 1% cash back on all purchases without limits. Rewards are automatically credited as statement credits. This card is accessible to users with fair to good credit and includes basic features such as contactless payments and identity theft protection. Additional Mastercard benefits include global service assistance and zero liability protection for unauthorized transactions.

Based on the cardholder’s credit standing and the Prime Rate, interest rates for purchases and balance transfers vary between 16.74% and 23.74%. The card does not offer any 0% APR promotions, which may be seen as a disadvantage compared to other cards. Fees for balance transfers are greater than $10 or 4% of the transfer amount. Cash advances are charged at an APR of 29.99% and incur fees of either $10 or 5% of the advanced amount, whichever is greater. A 3% fee on foreign transactions makes this card less ideal for frequent international travelers. Additionally, there are penalty fees for late or returned payments, costing up to $41 and $39, respectively.

Overall, the Synchrony Preferred World Mastercard® is targets individuals who aim to establish or improve their credit history rather than those searching for high rewards or advanced features.

2. Synchrony Plus World Mastercard®

The Synchrony Plus World Mastercard® is a credit card without an annual fee that provides 1% cash back on all purchases. This card targets individuals with good to excellent credit looking for an uncomplicated rewards system without multiple tiers. The 1% cash back is redeemed automatically as a statement credit, simplifying the process as there’s no need to redeem points manually.

Interest rates for purchases and balance transfers on the card vary, ranging from 16.74% to 23.74%, influenced by your credit score and the Prime Rate. Balance transfers are subject to a fee of $5 or 3% of the amount transferred, whichever is higher. The APR for cash advances stands at 29.99%, with a fee of $10 or 5% of the advance amount, whichever is higher. Additionally, a fee of 3% is charged on foreign transactions, which could make it less suitable for international use.

Although the Synchrony Plus World Mastercard offers basic 1% cash back, it lacks sign-up bonuses or 0% introductory APR promotions, making other cards more appealing if you’re looking for such features. Nonetheless, this card is a practical choice for those who want an easy-to-manage rewards card with no annual fee.

3. Synchrony Premier World Mastercard®

The Synchrony Premier World Mastercard® offers several appealing benefits for individuals seeking straightforward cash-back rewards. Cardholders earn a flat 2% cash back on every purchase, with no categories or limits to track. This cashback is automatically credited to your statement within two billing cycles, simplifying the rewards process. The card also comes with no annual fee, making it an attractive option for those who want to avoid recurring charges while still earning rewards.

In addition to its cash-back benefits, the Synchrony Premier Mastercard includes essential features like identity theft protection, zero liability for unauthorized purchases, and secure access to your account through a mobile app. Additional perks include access to Mastercard World Benefits, such as travel services and concierge support, which may assist with tasks like travel planning and event bookings.

However, the card has some fees that may be of concern. For example, there’s a 3% foreign transaction fee, which makes it less ideal for international travel. Furthermore, the card has variable APRs ranging from 19.24% to 34.99%, depending on your credit profile, with no introductory APR or sign-up bonus. Thus, it’s not the best choice if you’re looking to carry a balance or make a large initial purchase without accruing interest.

Top Synchrony Co-Branded Credit Cards

1. Sam’s Club Mastercard

The Sam’s Club Mastercard is a reward-based credit card available only to Sam’s Club members. It offers various cash-back opportunities in different spending categories. To get this card, you must have a Sam’s Club membership, priced at $45 annually for the regular option or $100 for the Plus membership. A notable feature for new cardholders includes a $45 statement credit, provided they spend $45 online the same day they open their account.

The card’s primary benefit is a 5% cash back on gas purchases, with a yearly limit of $6,000; beyond this limit, the cashback rate decreases to 1%. The card also offers 3% cash back on dining and travel, suitable for frequent travelers or those who often eat out. All other purchases, including those at Sam’s Club, yield 1% cash back, although Plus members earn 3% back on purchases made at Sam’s Club. All cash-back rewards are subject to an annual cap of $5,000.

This card does not charge an annual or foreign transaction fee, which might benefit those traveling abroad. However, it does come with high interest rates, with a regular purchase APR ranging from 20.9% to 28.9%, depending on creditworthiness. This emphasizes the importance of paying off monthly balances to avoid interest charges. Additional benefits include identity theft protection and extended warranty coverage on purchases made with the card, potentially increasing its overall value for users.

The Sam’s Club Mastercard could be a worthwhile choice for those who regularly buy gas, dine out, or travel, but evaluating your spending habits in these categories is crucial to making the most of the rewards.

2. MyLowe’s Rewards Credit Card

The MyLowe’s Rewards Credit Card provides several benefits for home improvement enthusiasts. New cardholders can receive a 20% discount on their first purchase, with savings capped at $100. This discount is available when you open and use a new account, but it cannot be used with other offers like the everyday 5% discount or unique financing options. This introductory promotion is valid until January 31, 2025.

The card’s regular benefits include a perpetual 5% discount on eligible Lowe’s purchases. Additionally, cardholders have access to unique financing choices, such as zero interest for six months on purchases totaling $299 or more and 12-month financing on specific items like appliances, flooring, and HVAC systems. For more substantial expenses of $2,000 or more, the card offers 84 fixed monthly payments with a reduced APR of 9.99%.

The card does not charge an annual fee, although it carries a high regular APR of 31.99%. Therefore, paying off balances promptly is crucial to avoid substantial interest charges. Despite the restriction that the 5% discount and special financing cannot be applied to the same purchase, the card offers flexibility to meet your purchasing needs at Lowe’s.

3. Verizon Visa® Card

The Verizon Visa® Card, issued by Synchrony Bank, is designed explicitly for Verizon customers and comes with no annual fee. Its regular APR varies from 26.24% to 30.24%, depending on the Prime Rate. This card is notable for its rewards program, which enables cardholders to earn Verizon Dollars on various purchases. These dollars can be used for Verizon products and services, like monthly bills or new device purchases.

The card offers a return of 4% on grocery store and gas station purchases, 3% on dining (including takeout), 2% on Verizon purchases, and 1% on all other eligible expenses. There are also no penalty APRs or fees on foreign transactions, making it suitable for those who travel often. Cardholders also receive benefits such as two free TravelPass days each year, which allow for international talk, text, and data without additional charges in many countries.

However, it’s important to note that the rewards, referred to as Verizon Dollars, are restricted to the Verizon network, which might not be ideal for those seeking more versatility in their rewards program. Additionally, this card is only available to Verizon customers, limiting its availability compared to other rewards cards. It remains a practical option for those aiming to lower their Verizon costs or upgrade their devices regularly.

4. Amazon Secured Store Credit Card

The Amazon Secured Store Credit Card, issued by Synchrony Bank, is suitable for individuals aiming to establish or improve their credit. It requires a minimum refundable deposit of $100, which sets your credit limit. This card provides 2% cash back on purchases at Amazon.com and Amazon physical stores, which benefits regular Amazon customers. It also has no annual fee and offers a fixed 10% APR on purchases, which is generally lower than the rates offered by other store credit cards.

An advantage of this card is the possibility of transitioning to the unsecured Amazon Store Card after 12 months of consistent, on-time payments. If you qualify for the upgrade, your deposit will be returned. Late payments incur a $5 fee, which is modest compared to the fees of up to $40 charged by some other cards for late payments.

This card is a practical option for those with limited credit history or individuals looking to enhance their credit score while earning rewards on their Amazon purchases.

5. Amazon Store Credit Card

Another Amazon-branded card, the Amazon Store Credit Card, provides substantial rewards for regular Amazon shoppers, particularly for those with an Amazon Prime membership. Prime members receive 5% cash back on purchases at Amazon.com and Amazon physical stores, a significant benefit of the card. Non-Prime members, however, find the rewards less attractive since they are ineligible for the cash-back offer.

The card also offers promotional financing options, with 0% APR for terms of 6, 12, or 24 months based on the amount spent. For example, purchases between $149 and $598.99 qualify for six months of financing, whereas purchases over $799 qualify for 24 months. It’s important to note that these financing plans include deferred interest. If the balance is not settled in full by the end of the promotional period, interest is charged from the purchase date at the standard variable APR of 29.99%.

There is no annual fee, although late payments can result in a fee of up to $40. This card suits those who shop on Amazon, maintain an active Prime membership, and diligently manage their payments to prevent deferred interest charges and late fees. However, due to the card’s high regular APR and its restriction to Amazon purchases, it may not be ideal for everyone.

This card can benefit committed Amazon customers who wish to maximize rewards and have access to financing on substantial purchases. However, careful financial management is required to avoid significant interest charges from deferred payments.

6. AEO Real Rewards Visa® Credit Card

The AEO Real Rewards Visa® Credit Card, issued by Synchrony Bank, is an excellent choice for devoted American Eagle Outfitters (AEO) and Aerie shoppers. This card offers numerous benefits to enhance rewards and savings for regular customers. One of its standout features is the ability to earn up to 20x points per $1 spent at AEO and Aerie, including additional 2x points on jeans and 5x on non-AEO purchases, offering greater flexibility than many other retail cards.

Cardholders benefit from a 10% discount on every in-store purchase, complimentary standard shipping on online orders, and access to six exclusive cardholder events annually. Additionally, a birthday coupon provides up to 25% off, and with no annual fee, this card offers value without extra costs.

However, the card has a high APR, with a regular purchase APR of 31.24% and a cash advance APR of 32.24%. Paying off balances each month is crucial to avoid substantial interest charges. Other fees include a 3% foreign transaction fee and a late payment fee of up to $41. Despite these expenses, the reward structure can benefit those who shop frequently at AEO or Aerie and diligently manage their accounts.

The card is also linked with the AEO Real Rewards program, enhancing earning potential for those who reach the “Extra Access” membership level by spending at least $350 annually at AEO. This card is precious for customers who save on clothing and accessories from these brands.

7. BPme Rewards Visa® Credit Card

The BPme Rewards Visa® Credit Card offers a flexible option for those looking to save on fuel and earn cash back on other purchases such as groceries and dining. Initially, new cardholders benefit from a significant fuel discount, saving up to 30 cents per gallon at BP and Amoco stations for the first 30 days when using the card with the BPme app. After this introductory period, the discount becomes 10 cents per gallon at participating stations.

In addition to fuel savings, the card provides 3% cash back on grocery purchases and 1% on all other purchases outside of fuel. Purchases at BP and Amoco convenience stores yield 5% cash back, making this card particularly valuable for driving frequently.

While the card has no annual fee, it carries a high regular purchase APR of 30.99%. Paying off the balance each month is crucial to avoid hefty interest charges. Other fees include a cash advance fee of either $10 or 5% of the transaction amount, whichever is greater, and a foreign transaction fee of 3%.

The BPme Rewards Visa® Credit Card is ideally suited for individuals who regularly visit BP and Amoco stations and can leverage the cash-back rewards on groceries and other spending to maximize benefits. However, the high APR necessitates careful balance management to prevent accruing interest.

8. TJX Rewards® Platinum Mastercard®

The TJX Rewards® Platinum Mastercard® is the top choice for frequent shoppers at TJX stores such as T.J. Maxx, Marshalls, HomeGoods, Sierra, and Homesense. This credit card offers 5% back on purchases at these retailers, which means for every $200 spent, cardholders earn $10 off. Rewards are earned as points, with 1,000 points equaling a $10 voucher that can only be used at TJX brands. The card also includes a 10% discount on the initial purchase, although this benefit might be less significant than other cards offer.

There is no annual fee, making it an appealing choice for regular TJX customers. The absence of foreign transaction fees also benefits those who shop internationally at these stores. On the downside, the card has a high APR of 32.24% for regular purchases, underscoring the importance of paying the balance fully each month to dodge high interest charges. Additionally, cash advances have an APR of 29.99% and incur a fee of either $10 or 4% of the advance, whichever is higher.

The rewards might not be particularly advantageous for those who don’t shop frequently at TJX stores, as non-TJX purchases only yield 1% back, and the rewards are restricted to TJX locations. Furthermore, although the points do not expire, the reward certificates do after two years. This card is best suited for people who regularly shop at TJX stores and diligently pay off their monthly balances to avoid steep interest fees.

9. Venmo Visa Credit Card

With a simple cash-back program, the Venmo Visa Credit Card is the best choice for regular Venmo users. It rewards up to 3% cash back on the category you spend the most on each month, adjusting automatically to your spending habits. The card offers 2% back on the second-highest spending category and 1% on all other purchases across diverse categories such as groceries, dining, gas, and travel, enhancing its utility for daily expenses.

A notable feature is the automatic cashback transfer to your Venmo account at the end of each billing cycle, allowing instant use of the funds for payments or purchases through Venmo. This feature suits those who value ease of use. The card comes without an annual fee and does not charge for international transactions, which is advantageous for those who travel abroad.

Additional benefits include contactless payments and a personalized QR code on the card, which links to your Venom profile for simplified payment requests and social interactions. Standard Visa benefits like zero liability protection and roadside assistance are also included. Be mindful of the APR, which varies between 20.24% and 29.24%, as maintaining a balance could incur substantial interest charges.

This card is ideal for avid Venmo users who prefer a straightforward reward system and want to avoid complex credit card features or annual fees. However, other credit cards may be more appropriate if you want more flexibility in using rewards or higher reward rates in specific categories not tied to Venmo use.

10. PayPal Cash Back Mastercard®

The PayPal Cash Back Mastercard® is a practical choice to optimize cash-back rewards, particularly for PayPal enthusiasts. With no limits or rotating categories, it grants 3% cash back on PayPal purchases and 1.5% on all other transactions. This is particularly beneficial for regular online shoppers using PayPal, as it provides a higher rate on digital wallet transactions than many other cards.

A key benefit of this card is the absence of an annual fee, which enhances its affordability for frequent use. Nevertheless, based on credit history, it carries a variable APR of 20.24% to 34.99%. It lacks an introductory APR offer, which might be less appealing for those planning to make substantial purchases soon.

Rewards redemption requires a PayPal account since the cashback is deposited directly. This process is straightforward for those already using PayPal but may require additional steps for others. The card allows for flexible redemption with no minimum cash-back thresholds.

Additionally, it includes Mastercard ID Theft Protection™, which provides alerts on potential identity theft. However, it does not offer many of the more extensive travel or purchase protections found on some competing cards.

The PayPal Cash Back Mastercard® is most beneficial for those who frequently use PayPal and prefer a simple and effective rewards program for online and everyday spending without the concern of annual fees. Those seeking more diverse rewards or enhanced travel benefits might find more excellent value in other credit cards.

Is a Synchrony Credit Card the Best Option for You?

Opting for a Synchrony credit card could be a smart choice if you often shop at specific retailers, as mentioned above; others include Dick’s Sporting Goods, JCPenney, or Walgreens. These store cards offer advantages such as promotional financing options (deferred interest) and discounts that benefit frequent shoppers. Additionally, store cards tend to have more lenient approval requirements than general-purpose credit cards, making them a good option for those looking to establish or rebuild their credit.

However, like other store cards, Synchrony’s store credit cards have limitations. Most are “closed-loop” cards, which means they can only be used at specific stores. This restriction limits their use to purchases at certain retailers or within particular categories, such as home goods or medical expenses. Moreover, these cards typically feature high annual percentage rates (APRs), which could make maintaining a balance costly unless managed carefully.

For those who prefer more flexibility, Synchrony offers “open-loop” credit cards, such as the Synchrony Premier World Mastercard. This card is accepted everywhere Mastercard is accepted, provides 2% cash back on all purchases, and does not have an annual fee, making it a more flexible and beneficial choice for everyday purchases in various categories.

Examples of Synchrony’s specialized credit cards include:

• Synchrony Car Care: Useful for automotive expenses, including repairs and gas.
• Synchrony HOME: Geared towards home goods and improvement purchases, with promotional financing available at thousands of partner stores.
• CareCredit: Typically used for medical and dental expenses not covered by insurance.

A Synchrony credit card might suit you if it matches your shopping habits, offers applicable promotions or financing options, and you are diligent about paying off balances to avoid high-interest charges. If you seek more comprehensive spending options and rewards, you might consider Synchrony’s open-loop cards or other general rewards cards.

Conclusion

Synchrony Bank has emerged as a significant player in the credit card market, particularly for those interested in store-branded and co-branded credit cards. Its offerings cater to a diverse range of needs, from the frequent shoppers at retail giants like Amazon and Lowe’s to those seeking to make the most of everyday purchases with the PayPal Cash Back Mastercard® or the Venmo Visa Credit Card.

Synchrony’s no annual fee policies across many cards and benefits like cash-back rewards and no foreign transaction fees on selected cards make it appealing to budget-conscious consumers. However, these cards’ typically high APRs and specific usage restrictions necessitate careful financial management. Customers must weigh the perks of immediate rewards against the potential costs of carrying a balance.

Synchrony Bank’s credit cards offer compelling benefits for consumers prioritizing savings on specific brands or those looking for straightforward cash-back options without complicated requirements. Yet, exploring broader market options might be advisable for those needing more flexibility or extensive banking services. Ultimately, choosing a Synchrony credit card—or any credit card—should align with one’s spending habits, financial goals, and credit management strategies to fully leverage the potential benefits while minimizing costs.

Frequently Asked Questions