Characteristics of consumers targeted and neglected by credit card companies

Abstract

This study identifies the primary characteristics of consumers who are targeted and those who are neglected in mail solicitations by credit card companies. We find that credit card companies target consumers who do not have recent payment difficulties and credit damage, and have strong financial resources, substantial and responsible credit use, and established credit history. They neglect con- sumers who have recent payment difficulties and credit damage, weak financial resources, little or no credit use, and scant credit history. These results show that, contrary to speculation by some researchers, credit card companies target more credit-worthy consumers and neglect less credit-worthy ones.