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Data for today’s episode is provided by Mercator Advisory Group’s report – Secured Cards: Five Reasons Credit Card Issuers Should Serve This Market.
Secured Cards have huge growth potential in five sectors:
- Any underserved category—thin files, tarnished files—Mercator suggests 20 to 30 million prospective cardholders:
- First Time Borrowers: 4 million consumers turn 21 each year in U.S.
- College Students: 20 million college students, 17% graduate annually
- Immigrants: There are 700,000 new citizens in the U.S. each year, 34 million lawful immigrants total
- Credit Impaired and Invisible: 700K bankrupt consumers annually, 26 million credit “invisible”
- Prepaid Card Users: 12 million monthly prepaid users are potential secured cards users
About Report
Mainstream programs add deposits and create a feeder group for general-purpose credit cards.
While most credit card issuers chase mass-affluent consumers and those with 700+ FICO Scores, a downstream secured card issuance program with a progression plan for advancing cardholders from secured to unsecured account status can be a strategic advantage.
