Posted by: Marshall Sponder | July 15, 2008

SubPrime Credit Card Applications going up – ComScore

As a side note to the deepening Financial Meltdown going on on Wall Street and the realization and acceptance that the World Economy Will Stay Sluggish according to Ben Bernanke, who briefed Congress – even as Stocks Recovering, or move back and forth as Oil Prices Fall – it’s interesting to get this just published by ComScore highlight high financial distress by consumers who are defined as “SubPrime” (I thought loans where classified as “Subprime” or “prime” not consumers).

The ComScore study on comScore Study Finds Online Credit Card Applications
From ‘Subprime’ Candidates Rise 30 Percent Over Year Ago

“…online banking and credit industry, which showed that the number of online credit card applications submitted by subprime applicants (defined as individuals having the equivalent of a FICO creditworthiness score of 660 or less) increased by 30 percent in Q1 2008 versus the same period last year. Meanwhile, the number of applications submitted by prime applicants (defined as individuals having the equivalent of a FICO score greater than 660) declined by 16 percent.”

There’s also going to be a Webinar explaining the results taking place on Thursday, July 17th – here’s the details:

“…Additional results from the comScore study will be presented during a 1-hour, live webinar entitled “Industry Insights: Credit Cards and Banking” on Thursday, July 17 at 2:00 p.m. ET/ 11:00 a.m. PT.  To register for the webinar, please visit: https://www1.gotomeeting.com/register/316294436.

I can see this kind of data being a footnote to a Paul Krugman blog post or Op-Ed

Total Credit Card Applications Submitted Online

Date: Q1 2007 vs. Q1 2008

Total U.S. – Home/Work/University Locations
Source: comScore Online Credit Card Acquisition Benchmarker

Number of Applications Submitted Online
(000)

Applicant Type*

Q1 2007

Q1 2008

Percent Change
Y/Y

Total

9,890

10,672

8%

Subprime

5,174

6,716

30%

Prime

4,716

3,956

-16%

*Subprime defined as individuals having the equivalent of a FICO score of 660 or less;
Prime defined as individuals having the equivalent of a FICO score greater than 660.

Interestingly, there’s no explaination on why “Prime” applecants for Credit Cards are down – where you’d think they’d all be crunched – so I question this data, or, at least, I’d like to know more – and if I have time I’ll attend the Webinar.

ComScore’s study also look at Search Behavior:

According to data from comScore Marketer, the number of searches for the term “cash advance” more than doubled, while the number of searches for the term “foreclosure” jumped 68 percent. Other terms that have increased in search volume include “credit card” (up 20 percent), “mortgage” (up 13 percent), and “bad credit” (up 9 percent).

Searches* for Banking and Credit-Related Terms

Date: Q1 2007 vs. Q1 2008

Total U.S. – Home/Work/University Locations

Source: comScore Marketer

Search Term

Total Number of Searches
(MM)

Q1 2007

Q1 2008

Percent Change
Y/Y

Bad Credit

3.71

4.06

9%

Cash Advance

0.64

1.36

113%

Credit Card

15.77

18.93

20%

Foreclosure

4.18

7.03

68%

Mortgage

21.69

24.58

13%

*Based on broad matches of the search term.

I put the same 5 keywords in Radian6 to see what I could pick up using Social Media Buzz Monitoring over the last 30 days (I tried to tie these keywords in with “credit cards” by adding it as a condition on each keyword phrase)

The Buzz information seems to mirror what Comscore is saying – but I wonder how it breaks down according to type of media with 99% of it being comprised of Blogs and Forums.

Too bad Radian6 lacks  a measure of “Reach” assigned to each source of data – it might be more accurate to estimate the effect of Social Media is we can mash up the Engagement Score with the possible Audience numbers that could have seen the media – and right now, I haven’t found a tool that does that.  In fact, data on the potential readers (ie: Unique Visitors) to any page/site are out there (ie: Quantcast, Compete, Alexa, ComScore – for the larger properties) and I think we need to add potential audience as a dimension to Social Media Measurement that is not, as yet, being counted.


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Responses

  1. Stay tuned, Marshall. The visits, unique visitors, etc. metric is coming soon integrated into the dashboard along side the existing metrics.

  2. hmm.. thank you very much. usefull information


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