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Bread Financial Holdings Inc., a Columbus, Ohio-based provider of payments, lending, and savings services, on Tuesday released a performance update for January that showed strong gains in credit card and other loans held, but also showed a substantially higher delinquency rate.
For the month of January, credit card and other loans totaled $20.83 billion, up 23% from $16.97 billion a year ago. But delinquencies of more than 30 days, minus principal, totaled $1.13 billion for January, up from $681 million a year earlier. Bread’s delinquency rate was 5.8%, compared to 4.2% from a year ago.
Bread Financial was known as Alliance Data until it changed its name in March last year.
In related news, Choice Hotels International Inc. has finalized a multiyear agreement with Wells Fargo & Co. to launch a new cobranded Mastercard credit card this spring. As part of the deal, Mastercard Inc. will become the exclusive payments network for credit cards through the hotel chain’s Choice Privileges loyalty program.
The new card program enables cardholders to accrue rewards faster. Cardholders can earn quintuple points on stays at participating Choice hotels, triple points on purchases at gas stations, grocery stores, home-improvement stores, and phone plans, and points on a one-to-one ratio on other purchases. Additional features include an automatic Gold Elite Membership and cell-phone protection. Choice’s family of 20 hotel brands includes Cambria Hotels, Radisson Hotels, and Country Inn & Suites. Overall, the chain operates 7,500 hotels.
Choice Privileges includes World Elite Mastercard benefits, which include access to exclusive offers with select merchants, World Elite Concierge services, and Mastercard’s Priceless Experiences program, which allows cardholders to book unique experiences in their home city or while traveling when using their Mastercard. Other features include Mastercard ID Theft Protection, Zero Liability Protection, and Global Services for emergency assistance.
Robert McDowell, chief commercial officer for Choice Hotels, said in a statement that the new program with Wells and Mastercard will allow the hotel chain to speed up users’ ability to “earn exceptional rewards.”
“Now, with the launch of our refreshed cobranded credit card program, cardholders will have the opportunity to unlock the best Choice has to offer,” McDowell added.
