Increase Your Loan Marketing Lists with Alternative Credit Risk Scoring

Are you losing prospects to credit bureau opt-outs? Try this bank marketing strategy to recapture your audience.

If you’re like many financial marketers, you use credit bureau scores to pre-qualify the customers and prospects on your loan marketing lists. But did you know you could be losing as much as 15 percent of your mailing universe simply due to credit bureau opt-outs? And chances are, those are credit-qualified consumers you’re missing.

Two Types of Credit Risk Scores Let’s take a step back to set the scene. Start with the fact that you only want to send loan marketing communications to consumers who are most likely to meet your credit qualification requirements. For most financial institutions, that means using a baseline credit score to weed out people who don’t meet your criteria. Generally speaking, there are three sources from which you can develop risk scores: credit bureaus, internal transaction data and public data.

The good news is, alternative credit risk scores built from public data can give you a simple, creative and Fair Lending-compliant way to recapture those lost prospects and re-build the size of your credit marketing audience.

Two Sources for Credit Risk Scores

Credit bureau data comes from consumer reporting agencies and consists of information in the consumer’s credit history. When you use bureau data to screen your loan marketing list, you must then extend an offer of credit in your communications to that list — in other words, a prequalified offer. And consumers can opt-out — for five years or permanently — from receiving offers tied to their credit bureau data.

Public data can be used along with internal transaction data by lenders or third parties to evaluate credit quality. These assessments factor in multiple variables, which may include public data, such as length of time at current residence or other publicly sourced data. (It cannot include certain other variables, such as gender or presence of children in the household, due to Fair Lending guidelines.)

The benefit here is that, when you use public data, you’re not required to send a preapproved offer, but instead have the flexibility to send invitation-to-apply (ITA) offers. You also have the freedom to mail these consumers, even if they’ve opted out with the credit bureaus.

Introducing a New Custom ITA Credit Score

At CCG, we’ve developed our own custom ITA Credit Risk Score to help financial institutions who are seeking an alternative to the loan marketing restrictions that come with using credit bureau scores.

Key Benefits of CCG’s ITA Credit Risk Score

  • Expands your credit marketing list by bringing credit bureau opt-outs back into the pool
  • Based on public data at a household level, not simply the block level
  • Built to comply with Fair Lending requirements (individual financial institutions must confirm compliance)
  • High degree of accuracy — eight out of 10 times, our score will lead to the same credit-quality decision you would make with a credit bureau score
  • Lets you mail to a “fresh” audience not receiving credit bureau-based mailings, which can improve response rates
  • Allows you to mail ITA offers instead of requiring you to send prescreened offers
  • Easily integrates into your cross-selling strategy and your omni-channel or digital marketing initiatives
  • Lower cost than purchasing credit bureau scores

Increase Your Loan Marketing Opportunities

Any time you can add more qualified candidates into your mailing pool, you increase your opportunities. That can quickly translate to lifts in your bank’s loan marketing performance — and more prospects converted to customers.

To learn more about CCG’s ITA Credit Risk Score or set up a trial, email our financial marketing team or call 800.525.0313.

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