Americans Like Credit Card Applications to Come to Them, Says Cardbeat
Tuesday, 26 June 2007
Nearly half of US consumers— 42 percent—received their newest piece of plastic through a pre-approved credit card offer, according to Cardbeat, the syndicated market research report by Auriemma Consulting Group (ACG). Americans are familiar with direct mail solicitations and usually have several to choose from when they decide to apply for a new credit line.
“In the past, the US credit card industry relied nearly entirely on mail solicitations to generate new acquisitions,” says Megan Bramlette, managing editor of Cardbeat. “Although branches, the Web and direct-response TV also court consumers, mail still generates the greatest success.”
In 2005, 39 percent of US consumers said that they had applied for a credit card through a pre-approved direct mail offer. That percentage increased by 50 percent in 2007 to 60 percent of US consumers.
By contrast, British consumers apply for credit cards primarily through untargeted materials such as take ones available at teller counters. Only 28 percent have ever replied to a pre-approved direct mail offer. Just 15 percent applied for their most recent credit cards this way.
If credit lines are any indication, US and UK consumer are sourcing their credit tools appropriately. “This year, Americans who acquired cards through pre-approved mail offers received an average credit line of $8,002,” she says. “Brits who applied through the same channel got an average of $5,795, but those who filled out take ones received credit lines averaging $9,729.”
Cardbeat surveyed 501 American credit card users in December 2005, and 400 American credit card users in January 2007. Data from 505 British respondents was collected in January 2007 to enable a cultural comparison and contrast. The results from this survey were originally published in the US and UK editions of Cardbeat.
ACG is a management consulting firm in the payments and lending industry with offices in New York and London. Cardbeat provides insight into how consumer perceptions impact credit card acquisition and usage.