Target Credit Users, Not Just Credit Takers, in the New Lending Marketing Era
By Marnie Kadish, VP, Product Management, Credit Informed Marketing Solutions at TransUnion
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Executive Summary
- Acquisition costs are up 45% since 2020, but over half of new credit accounts remain inactive. Traditional prescreen methods are no longer sufficient in today’s high-cost, high-competition environment.
- Only 9% to 31% of prescreened prospects actually match the profile of engaged users. Lenders must shift from targeting acceptance to targeting likely long-term product usage and engagement.
- Agile marketing with precision targeting delivers 26% higher origination rates. Using geodemographic data and behavioral insights to find ideal customers significantly improves ROI without overhauling existing systems.
In our previous article, we explored why financial institutions are embracing agile marketing. The takeaway was clear: In a world of rapid change and rising expectations, agility isn’t just a competitive advantage; it’s a necessity. Now, we turn that “why” into a “how” by looking at a critical application of that agility: customer acquisition.
As the credit shopping ecosystem evolves, so must the strategies lenders use to engage consumers. One area of is targeting; more specifically, focusing on the right people — not just those who will take a product, but those who will use it. These are the consumers who look and behave like your most engaged customers. And in today’s environment, they’re key to profitable growth. Let’s dive in.
The Credit Shopping Landscape In 2025
Rising costs, shifting consumer behaviors and increasing competition continue to define the current credit marketplace. Acquisition costs, for example, are up roughly 45% since 2020 due largely to incentive inflation, AI-driven targeting and data privacy regulations, according to Fintel Connect’s 2025 Benchmarking Guide.
At the same time, credit card delinquencies have been increasing. Serious delinquencies (90+ days past due) are expected to rise to 2.76% in 2025, continuing a five-year upward trend. The current share of overall credit card debt in delinquency has been at its highest level since the Great Recession — and the share of people in delinquency has surpassed levels from that time. While more than half (55%) of U.S. consumers are optimistic about their household finances in the next 12 months and more consumers are shopping for credit, fewer are maintaining healthy usage patterns, making it even more critical for financial institutions to focus on acquiring not just any customer — but the right one.
Adding to the complexity, only about 40% of newly acquired card accounts (those opened within the last 24 months) are considered “active” — those who regularly transact and carry meaningful balances. This suggests more than half of new accounts may not deliver the expected return on acquisition investment.
Why Usage Matters More Than Acceptance
Traditional prescreen methods, while still valuable, are no longer sufficient in this high-cost, high-competition environment. The real opportunity lies in identifying and targeting likely users — not just takers. Engaged customers (those who actively use and retain their products) are significantly more profitable over time. Recent analysis by TransUnion shows these prospective users often share traits with financial institutions’ existing best customers, making them easier to identify with the right data and modeling.
TransUnion’s research further highlights this opportunity: Across four major issuers, TransUnion found just 9% to 31% of prescreened prospects matched the profile of the issuers’ most engaged users. This disconnect underscores the need for smarter segmentation strategies that go beyond credit scores alone.
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Defining the ‘Ideal’ Customer
In this context, TransUnion defines ideal customers as those who fall within geodemographic segments (defined by a combination of location-based information and personal characteristics) where the highest number of actively engaged cardholders are found. These individuals not only meet creditworthiness criteria but also exhibit behaviors and characteristics that align with long-term product usage and retention.
Segmentation strategies derived through credit as well as geodemographic data can help identify and prioritize these high-value prospects. This includes factors like lifestyle indicators, digital engagement patterns and even regional economic trends — all of which can signal a higher likelihood of sustained product use.
Finding Pockets Of Opportunity In Uncertainty
In a fragmented and inflation-sensitive market, lenders must look for pockets of potential — segments where the likelihood of engagement is high, but competition is still manageable. Agile marketing strategies are essential here. By testing, learning and adapting in real time, lenders can better optimize targeting and other acquisition efforts and reduce waste.
Campaigns that targeted ideal segments using agile methods saw up to 26% higher origination rates and 11% higher balances, demonstrating the power of precision targeting combined with iterative learning.
Operationalizing The Strategy
To put this strategy into action, financial institutions can take two key approaches:
- Prioritize existing customers: Leverage customer data and insights to define your ideal customer and prioritize accordingly within current prescreen criteria. This means refining existing models or selection criteria to elevate those who resemble engaged users.
- Propensity swaps: Replace marginal prospects with slightly lower-score individuals who share behavioral and demographic traits with high-value users.
These approaches don’t require a complete overhaul of existing systems. In fact, they can complement existing prescreen flows, enhancing rather than replacing current acquisition strategies.
The Role Of Data Beyond Credit
While credit data remains a crucial foundation for lending decisions, expanding the scope to include a wider array of data signals allows lenders to more accurately identify and engage their ideal customers. This broader approach encompasses geodemographic insights — such as where individuals live, how they spend and what they value — alongside behavioral data that captures online activity, mobile engagement and purchasing patterns. Additionally, life stage indicators, including significant events like moving, marriage or career changes, often serve as early signals of emerging credit needs, enabling timelier and more personalized outreach.
By layering these data types, lenders can build more nuanced models that predict not just creditworthiness but credit engagement as well.
As acquisition costs rise and consumer behavior becomes more complex, financial institutions must evolve their strategies to stay competitive. The path forward lies in smarter targeting — focusing on likely users, not just takers. Data-driven segmentation, agile marketing and a broader view of consumer behavior serve as keys to unlocking hidden value.
By prioritizing ideal customers and operationalizing these insights within existing workflows, lenders can improve ROI, reduce risk and build stronger, more profitable customer relationships.
To learn more about today’s consumer credit seekers, the most effective channels for reaching them and factors influencing their decisions, read TransUnion’s Shopping for Credit market brief.
