Cabela's Plans to Sell Credit Card Sector before Selling Business

Cabela's Plans to Sell Credit Card Sector before Selling Business

January 27, 2016         Written By Natalie Rutledge

Cabela’s is trying to sell its profitable credit card sector before selling off the company altogether.

Rumors of Cabela’s company-wide sale sparked last year when competitor Bass Pro Shops was working on a deal to buy the business. Those plans are on hold for now, since Bass Pro Shops wants nothing to do with Cabela’s credit card portfolio.

Credit card sales comprise about 30% of the hunting and fishing retailer’s transactions, to the tune of $1.08 billion. This could mean big profits for the future buyer. Some industry experts believe the eventual plan of selling the business may not come to fruition, or it will be put on an extended delay after the credit card sector is sold to a new owner.

The credit card business hasn’t always been profitable for Cabela’s. In April 2014, the company was ordered to pay a $1 million fine from the Federal Deposit Insurance Corp for deceptive credit card practices. In March 2011, the bank Cabela’s operates had to pay $10.4 million in fines for improper credit card fees. Nevertheless, the credit card sector remains a strong component of Cabela’s overall portfolio, and could yield significant revenues for an interested buyer.



The information contained within this article was accurate as of January 27, 2016. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


natalierutledge

About Natalie Rutledge

Natalie Rutledge majored in Communications at Mississippi State University. She was in sales for a number of businesses and spent nine years working as a communications advisor to various entities. Natalie can be contacted directly at natalie@lowcards.com
View all posts by Natalie Rutledge
Featured Low Interest Card
Top Features : 1.25X miles on every purchase; no annual fee; bonus of 20,000 miles once $1,000 is spent in first 3 months
Featured Cash Back Card
Top Features : 1.5% cash back on all purchases; $150 bonus after spending $500 in first 3 months
Featured No Annual Fee Card
Top Features : 2% cash back on purchases: 1% when you buy plus 1% as you pay; 0% APR for 18 months on balance transfers
Featured Bad Credit Card
Top Features : Perfect credit not required; Reports to major credit bureaus
Featured Fair Credit Card
Top Features : No annual fee; access to higher credit line after making first 5 monthly payments on time
Featured Limited/No Credit
Top Features : No annual fee; reports to major credit bureaus; access to higher credit line after making first 5 monthly payments on time