 Advanced Credit
Profiling...
This is a strategy while not complex, can be
taken to very complex levels. Even in its’ most basic
form, it’s taken advantage of by very, very few. It
involves intentionally building your credit report in a way
which creates a “profile” that closely fits the criteria of
most lenders (as well as the overall credit scoring
system). Again, this is a technique which can be used in
a myriad of complex ways, but for simplicity I will explain it
in its’ most basic form.
While many consumers will boast when they have 10, 20, 30 or
even 50 thousand dollars worth of credit cards on their report,
many of these same people do NOT have even one mortgage,
automotive loan or lease, equipment loan or a even a line of
credit with a local bank or credit union. These other
forms of credit create a much more well rounded credit profile
for the consumer. This is achieved by showing greater
credit account diversity and experience with multiple types of
credit due to the various lines held.
For example. A person with $50K in
credit cards does not represent near the credit experience as a
person with the same $50K along with a mortgage, an automotive
loan and an equipment lease. We have clients who have
financed vehicles not because they had to (or even wanted to)
but because they “needed to” in order to create a credit
profile that would position them in the future to secure the
lowest possible rate on a mortgage when they applied and needed
it.
More complex forms of Advance Credit Profiling
involve one subscribing to affluent or semi-affluent business
and professional publications and organizations. These
would include magazines, newsletters, trade journals and
national associations. The goal is to get ones name into
the databases of these publications and organizations.
Why? To get on highly targeted lists in order to receive
select credit offers.
Marketers of credit offers have found that simply renting names
of consumers from the credit bureaus does not provide enough
information about the person as a credit risk anymore.
Therefore, it is speculated that many will rent a list from the
credit bureau and then cross-reference this list against
another list they have secured from a consumer source such as
an affluent business or professional publication, trade journal
or organization.
By crossing the two lists together the marketers find the names
contained on both lists. This in turn provides them with
one highly refined and targeted list to mail their offer
to. This results in shortening the process of securing a
new quality account holder thus lower the overall account
acquisition cost of new accounts.
When a consumer learns how to intentionally put themselves into
these databases to wind up on these refined lists, the credit
building process is sped up exponentially. Of course,
many would call this “highly speculative” but we have
undeniable experience that it works.
Deposit
Loan Programs...
-by Terry Price
(C) Copyright Terry Price
All Rights Reserved
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