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The Power of Prescreen Loan Campaigns

By on October 30th, 2013 in Marketing

With prescreen loan campaigns, your financial institution leverages data from the credit bureaus to identify specific lending opportunities from individuals that meet your credit requirements.

Prescreen loan campaigns can target either your existing account holders or prospective account holders living in the communities that you serve.

Most marketers don’t realize how to use this information to extend the most relevant offer to each prospect. That’s because they don’t fully understand the wealth of available credit data.

Learn more about the power of prescreen credit prospecting campaigns in this presentation.

Video Webinar

In today’s Webinar Wednesday episode, our Vice President of Business Development, Sid Haas, highlights how to use the wealth of credit data that is available to identify specific lending opportunities for your financial institution.

Video Transcript (Highlights)

Why Use Credit Data?

  • Prequalify potential borrowers based on your unique credit requirements.
  • Focus on the target audience most likely to respond.
  • Eliminate unlikely or high-risk prospects.
  • Increases response rates.
  • Owers mailing costs.

Acquire, Cross-Sell, and Retain

  • Acquisition – Identify credit-qualified prospective borrowers in the communities you serve.
  • Cross-Sell – Append credit data to your existing account holder lists for specific loan offers based on credit worthiness, credit history, and current loans.
  • Retention – Capture loan business that you have been losing to your competitors.

Available Credit Data

  • HUNDREDS of data fields available.
  • Customized criteria for each loan campaign.
  • General Credit Attributes – FICO score, bankruptcies, repossessions, late payment history (30 and 90 day lates), collections, etc.
  • Demographic Attributes – Income, age, gender, length of residence, presence of children, ethnicity, lifestyle segmentation, vehicle affinity, and others.

Available Credit Data – Auto Loan Campaigns

Extend new loan or refinance offers Most Common Auto Attributes.

  • Total balance on open trades Balance to credit ratio.
  • Months remaining on open trades.
  • Number of open vehicle trades.
  • Monthly payment on most recent vehicle trade.
  • Number of vehicle trades Monthly payment on oldest trade.
  • Age of most recent auto trade.
  • Payment savings calculation.
  • Estimated auto loan rate.

LKCS has the capability to distinguish between both types of trades.

Auto Campaign Ideas

  • New Auto Loan Campaign – Based on general credit worthiness – Option to look for people with history of open auto loans but no current open auto trades – Personalize with vehicle affinity, age, gender demographics.
  • Auto Loan Recapture/Refinance – Set criteria such as minimum loan balance, number of months remaining, estimated rate or potential payment savings, etc.
  • Lease Expiration Offer – New loan offer for people with auto leases coming due within next 6 months.

Available Credit Data: Home Mortgage

Extend new mortgage, home equity, or refinance offers Most Common Mortgage Attributes

  • Combined mortgage balance .
  • Number of mortgage trades.
  • Mortgage rate type.
  • Home equity aggregate balance for open trades.
  • 30/60/90 days late in the last 30 days/12 months/24 months.
  • Home equity open status trades.
  • Mortgage aggregate balance for open trades.
  • Mortgage date Combined Loan to AVM Value Mortgage highest balance.
  • Mortgage loan type Fannie Owned/Freddie.
  • Owned Age of most recent mortgage trade.
  • Mortgage rate.
  • Reverse mortgage suppress.
  • Age of most recent mortgage inquiry.
  • Mortgage length of term.
  • Savings calculations.

Available Credit Data: Credit Card Campaigns

Extend new loan and/or balance transfer offers Most Common Credit Card Attributes.

  • Combined Debt (Choose from aggregate balances on auto trades, home equity trades, installment trades, and/or bank and retail card trades).
  • Aggregate balance for open revolving trades.
  • Aggregate credit for open revolving trades.
  • Aggregate balance to credit ratio for open revolving trades.
  • Ratio of satisfactory to open trades.

Credit Bureau Data

Purchasing Data Directly from the Credit Bureaus

  • All Three Bureaus – LKCS has relationships that enable us to provide data from any or all of the three major bureaus.
  • Not all bureaus have information on all people – it is important to source data from multiple bureaus.
  • Up to 70% increase in leads when pulling data from three bureaus as opposed to one.
  • No additional cost to obtain data from multiple bureaus.

Using Credit Data

Purchasing Data Directly from the Credit Bureaus

  • Specify Your Lending Guidelines – 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.

Firm Offers of Credit

When using Credit Bureau data, marketing materials must include:

  • Indications that the recipient is pre-selected, prescreened, 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.
  • You must extend an offer of credit for each record purchased.

DataFlex Credit Alerting

  • LKCS can provide daily alerts for account holders or prospects that have had hard credit inquiries for mortgages, auto loans, credit cards, etc.
  • Specify credit, demographic and geographic criteria.
  • Daily alerts from Equifax, TransUnion and Experian!
  • Leads are prescreened against your credit criteria for each loan offer.
  • Use for account holder retention OR acquisition.

Credit-Based Alerts: Here’s What Happens

When your account holder (or a prospect in your geographic area) applies for credit ANYWHERE, an inquiry is posted to his or her credit file. These inquiries are categorized according to the type of financial product the account holder is seeking: mortgage, auto loan, or credit card. A “lead” is generated each time there is a match with the credit file.

  • Respond with a firm offer of credit or insurance immediately after receiving the lead.
  • Select which category(ies) of inquiry(ies) you wish to target.
  • Daily alerts from Equifax, TransUnion and Experian!
  • LKCS provides you with a list of all leads and fulfills any direct mail and/or e-mail offers on the same day.

Credit Prospecting: What’s the Cost?

Pricing depends on several factors including

  • Number of records purchased.
  • Demographic selects purchased.
  • Credit bureau minimum charges – FREE List Counts and Estimates.
  • LKCS will run counts at no charge to determine feasibility and cost of your next pre-screen marketing campaign.

Credit Alerting: What’s the Cost?

Based on number of account holders and/or prospects screened each month – FREE Opportunity Analysis. We will review your account holder credit activity over the past 30 days and provide you with the following data: credit activity by inquiry type, state and credit bureau, as well as qualification rates using your specific qualification criteria!