A scoop about Goldman Sachs’ new entry into retail lending went a little more viral than it deserved.
From Hugh Son’s “Goldman Sachs, bank of the rich and powerful, is dipping into subprime lending with Apple Card” posted on CNBC last week:
One new Apple Card customer, Ed Oswald, said his FICO score is about 620. The Reading, Pennsylvania-based copywriter said he had been using a subprime card from Merrick Bank.
“I was absolutely shocked I got it,” Oswald said. “I have a lot of collections from two or three years ago when I was in a really rough spot. When I heard it was with Goldman Sachs, I figured they were going for the high-income set.”
Oswald said Goldman is giving him a relatively modest credit limit of $750. He said his interest rate on the Apple Card, at 23.99%, is “a lot lower” than his other cards.
My take: I’ve asked Son how many Ed Oswald’s his reporting turned up. To me, his anecdote suggests that Goldman Sachs’ approval system might be working properly. Oswald’s terms—$750 max at the highest rate—are nothing to write home about.
Meanwhile, Apple and GS, I’m still waiting for the card I signed up for within minutes of its announcement and maybe a dozen times since.
Below: Son on CNBC last week.