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Synchrony Financial's (SYF) CarCare Hits Major Miliestones

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Synchrony Financial (SYF - Free Report) recently announced the milestones achieved by its Synchrony Car Care financial services program.

After the company rebranded CarCareONE as Synchrony Car Care in 2017, its business has witnessed the rising acceptance to more than 1,000,000 merchant locations across the nation ever since.

The company has constantly made efforts to boost this business, like it introduced the no-annual-fee, zero-fraud liability credit card. It turned out to be a customer favorite by substantially widening its in-store and online automotive merchants network. Synchrony CarCare attained pathbreaking records in its fourth year in the market.

Cardholders can now use the card to make payments for vehicle insurance premiums and deductibles over a span of time. This further strengthens Synchrony Car Care’s solid utility. Apart from buying parts and services, gas, tires and oil changes, customers can use Synchrony Car Care for parking, car washes, public transportation, car rentals, rideshare, tolls, etc.

Excluding fuel expenses, customers receive six months of promotional financing on purchases worth more than $199.

The company recently expanded the user base of Synchrony Car Care by giving more than one million current oil and gas customers an access to this plan.

These calculative moves are appreciated at a time when people are slowly increasing their travel spend and related costs. Synchrony Financial comes up with solutions for planned and unplanned car costs. It continues to collaborate with Discover Global Network to offer more acceptance within the automotive segment.

In 2019, the company announced the extension of acceptance network of merchants to include more auto-related categories and locations.  

This product belongs to the Payments Solutions business, which contributed to 17% of total interest and fees on loans for 2020. All these initiatives will likely boost the company’s business going forward.

Other factors, such as solid capital position, restriction initiatives, strategic measures and a strong Retail Card platform should help fuel overall growth.

Zacks Rank and Price Performance

Shares of this currently Zacks Rank #2 (Buy) company have gained 168.5% in the past year, outperforming its industry’s growth of 25.8%.

Other companies in the same space, such as Jefferies Financial Group Inc. (JEF - Free Report) , Discover Financial Services (DFS - Free Report) and Orix Corp Ads (IX - Free Report) have also soared 170.1%, 193.3% and 49.1% in the same time frame. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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