Bankcard Response Model

Improve response rates of your preapproved credit offers

As creditworthy consumers become increasingly selective, many credit grantors face declining response rates to their preapproved credit offers. The Bankcard Response Model from Experian helps you improve the profitability of your marketing campaigns by identifying creditworthy consumers most likely to respond to your offer.

A Highly Predictive Response Measurement Tool

Using data from Experian’s nationwide consumer credit database, the Bankcard Response Model calculates a score for each consumer in your prescreen portfolio. The higher the score, the greater the likelihood the prospect will respond to your offer.

With the Bankcard Response Model, you can:

  • Increase your response rate
  • Increase your campaign’s profitability by targeting the most likely respondents
  • Reduce your cost per account booked
  • Save the expense of developing a custom model
  • Developed with data from bankcard offers

To develop the Bankcard Response Model, Experian® selected a broad sample of individuals across the United States who had recently received preapproved credit offers. The sample included both respondents and nonrespondents to bankcard solicitations.

The variables found to be most predictive of responsiveness to direct credit solicitations were used to build the scorecards. They include:

  • Number of inquiries within the past six months
  • Number of revolving tradelines opened in the past six months
  • Total balance of revolving tradelines
  • Total available credit of open and current revolving accounts
  • Total number of open bankcards with a balance-to-limit ratio of 50 percent or more
How the Score Works

Using data from Experian’s nationwide consumer credit database, the Bankcard Response Model calculates a score for each consumer in your prescreen portfolio. The higher the score, the greater the likelihood the prospect will respond to your offer.

Experian evaluated consumer profiles, weighting each item according to its relative importance and developing score points for each. The model adds or subtracts points for specific credit characteristics. The raw scores are scaled to fall in a range of 0 to 999, with high scores indicating a greater likelihood of response. The model is composed of multiple scorecards but returns only one score per prescreened name.

Validated to Prove Performance

To validate the model, Experian conducted numerous response analyses of bankcard promotions using the Bankcard Response Model. The results of these tests proved the Bankcard Response Model to be a powerful predictor of response to a bankcard solicitation.

Experian has developed performance charts that provide a clear picture of how the model performs on bankcard offers. If validated, the model can also be used for nonbankcard prescreen solicitations.

The Bankcard Response Model can help you evaluate the performance of your own credit offers so you can:

  • Assess the potential of targeting likely respondents without increasing your risk
  • Determine future cutoff scores that best meet your needs
  • Compare the results of various offers and mailing periods
Use With Risk Models for More Precise Targeting

Add the Bankcard Response Model to your risk modeling strategies to further refine your prescreen selection process. By combining a risk score, which indicates overall creditworthiness, with a response score, you can rank prospects that meet your risk criteria according to likelihood of response.

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Contact us today to learn more about Experian Bankcard Response Model.

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