Prime VS Sub Prime Credit Cards

By Pulsar Marketing | Published  06/24/2006 | Affiliate Tips |

Pulsar Marketing PMRSS.com Pulsar Marketing loan and credit card affiliate program news & media center for its innovative advertising networks. For targeted marketing and top affiliate revenue, join our affiliate marketing network.  Articles by Pulsar Marketing Credit Card Marketing Marketing dilemma: Should affiliates advertise prime or only sub-prime credit card affiliate programs, or market both? First, let's examine common reasons why a consumer searches the internet for a credit card: The consumer was rejected by the bank. The consumers applied for a pre-approved card offer in the mail, but was denied. The consumer has never before had a credit card. The consumer once had a credit card, but had cancelled it. The consumer already has a credit card, but is seeking a better card offer (lower APR, more rewards, balance transfer, etc). The consumer has a credit card but simply wants an additional card. Now, let's pre-qualify the above demographics: Rejected by the bank - This indicates the consumer has credit problems and may only qualify for a sub-prime credit card. Rejected for pre-approved, mailed offers - Again, this indicates the consumer has poor credit, yet may still qualify for a sub-prime credit card. First-Time card applicant - Without a previous and recent history of credit card use, the consumer may have difficulty getting approved for a prime card. Previous card holder -  If the consumer had cancelled the card and charged-off the account, or if a long duration has passed since the card was active, these situations will make it difficult to get approved for a prime card. Seeking a better deal - When attempting to 'upgrade' to a credit card that offers lower interest and more rewards, often it may be best for the cardholder to contact the current issuer and negotiate a better rate and rewards. If the consumer has not been offered; or did not qualify for, a better deal through the existing issuer, then it's not likely the consumer will qualify for a prime card elsewhere. Seeking an additional card - Again, the consumer's credit history and score will determine eligibility for a prime credit card. Other factors that may jeopardize approval are the current balance on the existing card and the re-payment history. Just because a consumer has an active credit card in good standing does not guarantee pre-qualification for an additional card, much less a prime credit card. As you can see, it's much easier for consumers to obtain a sub-prime credit card over a prime credit card. But, consumers would prefer to have a prime card over a sub-prime card. From an affiliate standpoint, conversions are often higher for sub-prime card offers versus prime card offers, and that's why most prime cards reward higher commissions to affiliates. So which should affiliates market? Prime or sub-prime credit cards, or both? Problem 1: To achieve search engine traffic for sub-prime credit cards, the affiliate must use content such as 'bad credit card', 'instant approval credit card', 'no credit credit card', etc. Otherwise, it's not likely that sub-prime consumers would be able to locate the affiliate web site via a search engine. Problem 2: When sub-prime consumers locate the affiliate's web site via a search for 'bad credit card', they may opt to apply for the prime card offers instead. The result? Such consumers would not get approved for the prime card offers, and the affiliate would not receive a commission because most prime issuers require consumer approval in order for the affiliate to earn the commission. Double Jeopardy: In instances when a poor credit consumer applies for a prime card, not only will the affiliate not make a sale for the prime card offer, but also lost a sale for a sub-prime card since the visitor only applied for the prime card. Should affiliates promote only one type, either prime cards or only sub-prime cards? No. Affiliates can market both cards with success, but should take measures to maximize conversions by marketing each card type to the right demographic. Tips: Use bad credit' and other related sub-prime keywords on site pages which only contain sub-prime credit card offers. Do not put prime card offers on these sub-prime pages. Not only can doing so reduce your conversions, but it may also violate the marketing conditions of the prime card issuers. Educate your site visitors. Let them know that prime card offers require good-to-excellent credit. To further pre-qualify applicants, have your prime card links first go to a page on your site that states: "The card you have selected requires an excellent credit score. If you have an excellent credit rating, click "Continue" to apply. If you have less than perfect credit, click "Cancel" and you will be redirected to credit cards that help establish or re-establish credit." These tips provided courtesy of Pulsar Marketing. If you are not an affiliate yet of one of our networks, register now.

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<font face="Verdana" size=2>Prime VS Sub Prime Credit Cards - by <a href=http://pmrss.com>Pulsar Marketing</a><br><br><P style="MARGIN: 0px 15px 0px 5px" align=left><FONT face=Verdana size=2><STRONG>Marketing dilemma: Should affiliates advertise prime or only sub-prime credit card affiliate programs, or market both?</STRONG><BR><BR>First, let's examine common reasons why a consumer searches the internet for a credit card:</FONT></P> <DIR> <LI> <P style="MARGIN: 0px 15px 0px 5px" align=left><FONT face=Verdana size=2>The consumer was rejected by the bank.</FONT> </P> <LI> <P style="MARGIN: 0px 15px 0px 5px" align=left><FONT face=Verdana size=2>The consumers applied for a pre-approved card offer in the mail, but was denied.</FONT> </P> <LI> <P style="MARGIN: 0px 15px 0px 5px" align=left><FONT face=Verdana size=2>The consumer has never before had a credit card.</FONT> </P> <LI> <P style="MARGIN: 0px 15px 0px 5px" align=left><FONT face=Verdana size=2>The consumer once had a credit card, but had cancelled it.</FONT> </P> <LI> <P style="MARGIN: 0px 15px 0px 5px" align=left><FONT face=Verdana size=2>The consumer already has a credit card, but is seeking a better card offer (lower APR, more rewards, balance transfer, etc).</FONT> </P> <LI> <P style="MARGIN: 0px 15px 0px 5px" align=left><FONT face=Verdana size=2>The consumer has a credit card but simply wants an additional card.</FONT> </P></LI></DIR> <P style="MARGIN: 0px 15px 0px 5px" align=left><FONT face=Verdana size=2>Now, let's pre-qualify the above demographics:</FONT></P> <UL> <LI> <P style="MARGIN: 0px 15px 0px 5px" align=left><FONT face=Verdana size=2>Rejected by the bank - This indicates the consumer has credit problems and may only qualify for a sub-prime credit card.</FONT> </P> <LI> <P style="MARGIN: 0px 15px 0px 5px" align=left><FONT face=Verdana size=2>Rejected for pre-approved, mailed offers - Again, this indicates the consumer has poor credit, yet may still qualify for a sub-prime credit card.</FONT> </P> <LI> <P style="MARGIN: 0px 15px 0px 5px" align=left><FONT face=Verdana size=2>First-Time card applicant - Without a previous and recent history of credit card use, the consumer may have difficulty getting approved for a prime card.</FONT> </P> <LI> <P style="MARGIN: 0px 15px 0px 5px" align=left><FONT face=Verdana size=2>Previous card holder -  If the consumer had cancelled the card and charged-off the account, or if a long duration has passed since the card was active, these situations will make it difficult to get approved for a prime card.</FONT> </P> <LI> <P style="MARGIN: 0px 15px 0px 5px" align=left><FONT face=Verdana size=2>Seeking a better deal - When attempting to 'upgrade' to a credit card that offers lower interest and more rewards, often it may be best for the cardholder to contact the current issuer and negotiate a better rate and rewards. If the consumer has not been offered; or did not qualify for, a better deal through the existing issuer, then it's not likely the consumer will qualify for a prime card elsewhere.</FONT> </P> <LI> <P style="MARGIN: 0px 15px 0px 5px" align=left><FONT face=Verdana size=2>Seeking an additional card - Again, the consumer's credit history and score will determine eligibility for a prime credit card. Other factors that may jeopardize approval are the current balance on the existing card and the re-payment history. Just because a consumer has an active credit card in good standing does not guarantee pre-qualification for an additional card, much less a prime credit card.</FONT> </P></LI></UL> <P style="MARGIN: 0px 15px 0px 5px" align=left><FONT face=Verdana size=2><BR>As you can see, it's much easier for consumers to obtain a sub-prime credit card over a prime credit card. But, consumers would prefer to have a prime card over a sub-prime card. From an affiliate standpoint, conversions are often higher for sub-prime card offers versus prime card offers, and that's why most prime cards reward higher commissions to affiliates.<BR></FONT></P> <P style="MARGIN: 0px 15px 0px 5px" align=left><FONT face=Verdana size=2>So which should affiliates market? Prime or sub-prime credit cards, or both?<BR><BR>Problem 1: To achieve search engine traffic for sub-prime credit cards, the affiliate must use content such as 'bad credit card', 'instant approval credit card', 'no credit credit card', etc. Otherwise, it's not likely that sub-prime consumers would be able to locate the affiliate web site via a search engine.<BR><BR>Problem 2: When sub-prime consumers locate the affiliate's web site via a search for 'bad credit card', they may opt to apply for the prime card offers instead. The result? Such consumers would not get approved for the prime card offers, and the affiliate would not receive a commission because most prime issuers require consumer approval in order for the affiliate to earn the commission.<BR><BR>Double Jeopardy: In instances when a poor credit consumer applies for a prime card, not only will the affiliate not make a sale for the prime card offer, but also lost a sale for a sub-prime card since the visitor only applied for the prime card.<BR><BR>Should affiliates promote only one type, either prime cards or only sub-prime cards?<BR><BR>No. Affiliates can market both cards with success, but should take measures to maximize conversions by marketing each card type to the right demographic.<BR><BR>Tips:</FONT></P> <P style="MARGIN: 0px 15px 0px 5px" align=left><FONT face=Verdana size=2>Use bad credit' and other related sub-prime keywords on site pages which only contain sub-prime credit card offers. Do not put prime card offers on these sub-prime pages. Not only can doing so reduce your conversions, but it may also violate the marketing conditions of the prime card issuers.<BR><BR>Educate your site visitors. Let them know that prime card offers require good-to-excellent credit.<BR><BR>To further pre-qualify applicants, have your prime card links first go to a page on your site that states:<BR><BR><I>"The card you have selected requires an excellent credit score. If you have an excellent credit rating, click "Continue" to apply. If you have less than perfect credit, click "Cancel" and you will be redirected to credit cards that help establish or re-establish credit."<BR><BR></I>These tips provided courtesy of <a target='_blank' href="http://pulsarmarketing.com" target=_blank>Pulsar Marketing</A>. If you are not an affiliate yet of one of our networks, register now.</FONT></P><br>This article provided courtesy of <a href=http://pulsarmarketing.com target=_new>www.PulsarMarketing.com</a>, a network of top affiliate programs and innovative advertising software.</font>