Improving acquisition numbers in the current market has many benefits

Being able to streamline the process and proactively match the right consumers to the right products will reduce acquisition costs.  Consumers also benefit because it has no impact on their credit score.

Clients tell us the number one reason people abandon online applications is because they are worried they’ll be declined. What if you alleviate this concern by matching consumers to the product that best fits their credit profile at the start of the shopping process, greatly improving their chances of approval when they apply?

Experian gives you this ability with Prequalification, a powerful, consent-based credit-screening tool that provides access to individual credit data so you can proactively match consumers to the right products when they still are considering their options. Prequalification also can help to educate consumers on their credit health.

Here’s how Prequalification has changed the acquisition game for two of our clients who are prospecting online. “Experian’s Prequalification works — providing real benefits to the consumer and the marketer,” according to Ian Cohen, CEO of Credit.com. “For the consumer, Prequalification reduces the risk and fear of rejections. Plus, it helps them better manage their credit. For us, the marketer, Prequalification has facilitated targeted marketing that produces well-matched leads, fewer declines and lower acquisition costs.”

A subprime credit card issuer using Prequalification for online acquisitions said, “Experian’s Prequalification product is the perfect fit for our target market. Prequalification allows consumers, especially those with little or less than perfect credit, to see if they are qualified for one of our cards without risking a negative impact to their credit score.”

Find out how Prequalification can change your online acquisition game today. Contact us at 1 888 649 7990.

The key to unlocking credit is made of plastic

Understanding some fundamental principles about credit cards will help your customers choose the best ones to carry in their purses or wallets.

There are three key issues to consider. First, is the account reported to Experian and the other national credit reporting companies? Second, is the account secured or unsecured? Third, what is the individual’s association with the account?

There are a number of different types of accounts for which a card may be issued. However, the account associated with the card must be reported to Experian in order for it to appear in a credit history and be included in credit score calculations.

Debit cards, prepaid cards and “check” cards are not reported to Experian, so they do not help credit scores.

Secured accounts typically are associated with a savings account, but they may be reported by the lender. If reported, an unsecured account typically will have a less positive impact on credit scores than an secured account, but it is still an effective tool for building credit over time.

Unsecured accounts — traditional credit or charge cards — have the largest effect. They represent the greatest lending risk, so good performance will have the highest impact on credit scores in the shortest time — assuming all other aspects of the person’s credit history are strong.

A final consideration is the person’s association with the account. An authorized user has no responsibility for the debt. While an authorized user account can help credit scores, it will be less meaningful than an account for which the person has full responsibility for debt repayment.

Being a primary or joint account holder on an unsecured credit card account with a positive payment history is a key element to unlocking a person’s credit potential.

To learn more or to get answers about general credit questions visit us on Experian.com credit education page.