Lenders Turn Perks Into Power for Subprime Customers

Watch more: Dignity Over Data Is Writing a New Playbook for Subprime Credit

Underwriting innovations have credit down to a science.

Artificial intelligence scoring models, complex eligibility criteria and risk-based segmentation have drilled into the minute aspects of the financial services-seeking consumer.

But those strengths can become flaws when it comes to serving credit-thin or non-prime consumers — individuals often overlooked by traditional financial institutions.

“Customers shouldn’t feel like they’re being filtered or downgraded,” Concora Credit Chief Marketing Officer Jason Tinurelli told PYMNTS. “Let the credit process handle itself once the customer starts the application.”

For decades, creditworthiness has been portrayed in binary terms — approved or denied, prime or subprime. It’s a system that alienates as much as it evaluates.

Tinurelli said we’ve been doing it all wrong.

“Customers can identify themselves before they walk in the door,” he said. “What they really are looking for from you is some sort of hint that you have more options available for people with less-than-perfect credit.”

Starting with value, not validation, is important, he said.

A Blueprint for Inclusive Credit Marketing

Credit firms like Concora Credit are dialing in on consistency, dignity and trust, challenging the decades-old orthodoxy of consumer credit, particularly for individuals with subprime credit profiles.

Consumers with prior delinquencies or other credit issues have historically been offered “second-look” products that are high in cost and low in perceived value. Tinurelli said.

But it’s now the digital age of credit, and that’s helping to level the playing field.

Rather than leading with disclaimers or complex tiering systems, Concora Credit positions the value of the card first. Think points, perks and brand access.

“Applying for the credit card accelerates those values,” Tinurelli said. “That shouldn’t be part of your marketing — it should be the natural next step.”

In an age when customer journeys are increasingly fragmented — spanning social media ads, in-store promotions, email campaigns and mobile apps — maintaining a coherent brand message is more difficult and more critical. This is especially true in financial services, where inconsistent messaging can lead to confusion, mistrust and ultimately, attrition.

“The last thing you want to do is have this conversation going on with the consumer about having multiple available products, but then not make it available in one of the channels that the consumer wants to go to apply for,” he said. “That will create a bad experience for them.”

From Credit Access to Customer Belonging

For non-prime consumers, the mere offer of a credit product with attached perks can feel like a recognition of personhood.

“We frame the card as a membership credential, not a consolation prize,” Tinurelli said. “It doesn’t have to equal what’s available to your prime customers, but it should feel like an invitation — not a fallback.”

This approach dovetails with a broader shift in loyalty economics. Traditional models rely on spend thresholds and elite tiers, but for subprime consumers, loyalty is more deeply tied to access and affirmation. Concora Credit’s own products provide early engagement benefits — such as small cash back offers, birthday bonuses or early payment rewards — that reinforce a sense of inclusion without inflating risk exposure.

The result is what behavioral economists call “identity-based loyalty.” By reinforcing the idea that non-prime customers are part of a valued community, firms can work to cultivate long-term relationships that extend beyond transactional utility.