Experian recently reported that it has unveiled Text for Credit, a credit application initiated and completed via text message.
The company said in a release that the methodology helps reduce application time and also eliminates the risk associated with paper-based processes. In one cited use case, an applicant “interested in taking advantage of a store credit card incentive” could secure the card using Text for Credit through his mobile device.
Experian noted the initiative satisfies some of the main concerns tied to the credit application process and dovetails with the fact that almost all adults aged 18 to 44 own smartphones.
As evidenced in an Experian survey, more than half of consumers queried said they had concerns about privacy, and 42 percent reported reservations about the length of time it takes to apply for credit products. In addition, 12 percent of consumers said they have “walked away” from a purchase due to the length of time involved in the credit process.
Experian said consumers seeking real-time access to credit through this feature would text a keyword to a short code disclosed by a credit issuer. The consumer receives a text message back bringing them to a hosted mobile site through which the remainder of the credit application takes place. The consumer can be recognized through device credentials and access to credit is immediate, said Experian.
“Experian is taking the credit industry into the real-time economy with this innovative, convenient and confidential new way to apply for credit,” said Alex Lintner, Experian’s president of Consumer Information Services, in the statement. “For consumers, Text for Credit means no more paperwork, no more anxious minutes hoping for credit approval and dramatically reduced risk from a paper-extensive exchange of sensitive information. In fact, consumers can find out what they qualify for before they come to a dealership or a retail store, and that can translate to big sales increases.”