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What the Credit Bureaus Don’t Want You to Know About Pre-Screen Marketing

By on December 31st, 2014 in Marketing

By utilizing your credit criteria and credit data, you can easily target members or prospects that qualify for your auto loans, mortgage and home equity products, credit cards, and installment loans. And potential borrowers appreciate these loan offers since they are relevant to their needs AND you’ve eliminated their anxiety by letting recipients know that they meet your initial lending criteria .

There are great reasons to purchase prescreen credit data from LKCS.

  • Data cost is usually less
  • Lower minimum commitments
  • Better customer service
  • Customized campaign development and fulfillment
  • Results reporting
  • Data availability

Video Webinar

In today’s Webinar Wednesday episode, our Vice-President of Business Development, Sid Haas, discusses ways LKCS can help financial institutions to quickly and easily target account holders or prospects.

Video Transcript (Highlights)

Credit Prospecting or Credit Pre-Screen Campaigns

  • Use credit bureau data to identify potential borrowers that meet your INITIAL lending criteria.
  • Market to prospects or existing account holders with specific demographic and credit-based traits.
  • Can be broad reaching or pinpoint specific.
  • Use for any type of loan – mortgage loans, home equity/HELOCs, auto loans, credit cards, or consumer loans.

About Pre-Screen Campaigns

  • PRE-screen campaigns using a group of credit characteristics to target qualified individuals.
  • There are no guaranteed approvals. Borrowers will still need to APPLY and meet ALL of your underwriting criteria.
  • Even when you tell a recipient that they are “pre-approved”.

Credit Prospecting Campaigns

Extend pre-approved offers of credit to account holders and non-account holders based on actual credit score information.

  • Set criteria to identify recipients that will qualify for a loan offer based on your specific pre-screen requirements.
  • Send direct mail loan offers, e-mail offers, statement-based campaigns and make outbound phone calls to qualified account holder and non-account holder prospects.
  • And, you can utilize LKCS’ DataFlex reporting engine to measure the results of these campaigns!

Using Credit Data

  • Only market to prospects and account holders meeting your specific credit criteria (ie – FICO Score, LTV, Credit History, etc.).
  • Firm Offers of Credit
  • Credit data can only be used when you are extending credit offers.
  • Must be compliant with the Fair Credit Reporting Act.
  • LKCS helps with this!

Firm Offers of Credit

When using Credit Bureau data, marketing materials must include:

  • Indications that the recipient is pre-selected, pre-screened, pre-qualified, or pre-approved.
  • Terms and conditions; eligibility requirements.
  • Including why credit may not be extended after all.
  • Minimum dollar amount for which the recipient has been qualified.
  • Opt-out notice and disclosure.

Obtaining Credit Bureau Data – Two options:

  • Purchase data from one or more of the credit bureaus directly.
  • Purchase data from a 3rd party such as LKCS Why would you purchase the credit bureaus’ data from a 3rd party? THAT’S WHAT THEY DON’T WANT YOU TO KNOW!

LKCS: Better Customer Service

  • The credit bureaus primarily want to work directly with the largest financial institutions. – This is not the case at LKCS. We look forward to working with you: large, small or in-between.
  • Counts and estimates often take several days (at best) to get back from the bureaus. – LKCS utilizes an online interface to query data from the bureaus. We can run most counts and estimates in minutes.
  • LKCS speaks in plain English. – We explain and walk you through the process without complicated jargon or cryptic regulations.

LKCS: Campaign Development & Fulfillment

  • We do more than sell credit data.
  • LKCS has in-house design, printing, mailing, and web services.
  • All campaigns are custom designed. LKCS does not make you select a template.
  • So we can write and design the campaign materials and then print/mail any direct mail campaigns and send any e-mail messages.
  • We have lots of experience with pre-screen campaigns. We ensure your materials meet all FCRA requirements and get them approved for you by the credit bureaus.

LKCS: Results Reporting

  • Marketing departments need to measure Return on Investment. And LKCS can help.
  • We can work with you after the campaign ends to help you measure exactly how many new loans you closed as a result of your pre-screen campaign, who opened them, and the loan balances obtained.
  • Then, we’ll help you tweak and refine your next campaign to hopefully do even better.

LKCS: Better Data Availability

  • Credit data is private information. And the credit bureaus don’t share it with just anyone. In fact, they don’t even share it amongst each other.
  • Not all bureaus have information on all people.
  • It is important to source data from multiple bureaus.
  • LKCS has relationships that enable us to provide data from any or all of the three major bureaus.
  • Up to 70% increase in leads when pulling data from three bureaus as opposed to one.
  • There is no additional cost to obtain data from multiple bureaus.
  • LKCS layers non-credit datasets with the credit bureau data to create a very unique compilation of available criteria.

LKCS: Lower Minimum Charges

  • Did we mention that the bureaus really only want to work with the largest financial institutions?
  • We’ve seen credit bureau minimum charges routinely that are $2,000
  • $2,500 PER CAMPAIGN.
  • LKCS has negotiated much lower minimum commitments.
  • Take advantage of pinpoint accurate targeting (remember those leases coming due?)

LKCS: Reduced Data Costs

  • We’ve seen pricing grids from the bureaus that we don’t even understand.
  • Forget about pricing based on the number of attributes, different pricing for each data field, output costs, etc.
  • LKCS’ pricing is straight-forward and easy. Pricing is based on the quantity of records you purchase (the number of people that meet your pre-screen requirements).

What’s the Cost?

Pricing depends on a few factors including:

  • Number of records purchased
  • Demographic selects purchased (rarely affects pricing, but it can by a few cents per record)
  • Credit bureau minimum charges – A good guesstimate: $0.25 per record purchased (ie per person that meets your pre-screen requirements)

LKCS Also Offers

  • FREE List Counts and Estimates.
  • LKCS will run counts at no charge to determine feasibility and cost of your next pre-screen marketing campaign.
  • Find out exactly how many account holders or prospects meet your pre-screen credit criteria.
  • Get the costs to execute a direct mail and/or e-mail campaign to attract new loan business with a pre-screen campaign.