Text option speeds up credit application process

A new technology that allows consumers to initiate and complete a credit application within minutes by text, using their mobile devices, can lead to more business for auto dealers, says information services company Experian. Text for Credit is designed to address the top three concerns that consumers have about applying for credit or financing in a retail location.

A recent Experian survey showed those concerns to be speed, convenience and privacy — and they translate into lost revenue, says the company.

Twelve per cent of consumers say they have walked away from a purchase because it was taking too long to get approved for credit, while 16 per cent have walked away because the person in front of them was applying for credit.

And, 21 per cent 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.

Text for Credit solves these issues, said Alex Lintner, Experian’s president of consumer information services. Here’s how it works:

Shoppers seeking credit text a keyword such as “credit” to a short code supplied by the merchant or credit issuer.

They 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 and can avoid filling out a lengthy credit application. If approved, instant access to credit will be available via bar code or account details sente to their devices.

“Experian is taking the credit industry into the real-time economy with this innovative, convenient and confidential new way to apply for credit,” said Lintner.

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Canadian auto dealer