Credit card reporting agency Experian has unleashed Text for Credit, an industry-first technology that transforms the way consumers secure credit.vText for Credit modernizes the lending industry by allowing consumers to obtain “real time” credit via text.
Text for Credit allows consumers to initiate and complete the credit application process within minutes with a simple text message. For instance, consumers interested in taking advantage of a store credit card incentive can secure that card through their mobile device — a particularly exciting innovation considering smartphone ownership is nearing 100% for adults aged 18 to 44.
In an Experian survey, consumers were asked to identify their top three concerns about applying for credit or financing in a retail location. More than half (58%) cited privacy concerns, and 42% cited the length of time it takes to apply. These concerns translate to lost revenue — 12% of consumers said they have walked away from a purchase because it was taking too long to get approved for credit, while 16% have walked away because the person in front of them was applying for credit.
Additionally, 21% of consumers said they would consider purchasing a car in the next six months if they could shop credit offers and apply via mobile device quickly and securely. Seventeen percent said the same about clothing, and 15% said they’d consider purchasing a large appliance.
Text for Credit offers the speed, convenience and privacy necessary to solve these issues. It’s as simple as it sounds:
• Consumers seeking credit text a keyword such as “CREDIT” to a short code supplied by a merchant or a credit issuer, the same way some retailers now allow consumers to “text to buy.”
• Consumers then receive a text message response that takes them to a hosted website where they can apply, review credit offers and receive an instant decision.
• In most cases, consumers will be recognized by their device credentials, which lets them avoid filling out a lengthy credit application.
• If approved, consumers will have immediate access to the credit via a barcode or account details sent to their device.