Credit Cards Online Information

TAMPA, FLORIDA, U.S.A., 2000 MAR 23 (NB) -- According to a new study of borrowers' online credit habits, many consumers routinely surf the Web for the best credit offers. But, when it comes time to apply, less than half of Web credit shoppers will use the online application. That's the key conclusion of a report released today by PSI Global, a company owned by NFO Worldwide, Inc. [NYSE:NFO].

Among the key findings of the PSI Global study of online lending is the fact that credit cards currently account for the majority of online credit applications.

"Consumers' willingness to apply for credit online differs widely among various types of products," said Roger Swales, PSI Global's president and CEO. "Consumers readily respond online to offers for new credit card accounts, but are far less willing to complete the more detailed applications required for other types of credit, such as mortgages," he said. One of the reasons, Swales explained was that, "consumers want assurance that their personal financial information will be handled in a secure, confidential manner."

The study identified price and the lender's reputation as two key factors in creating a greater consumer willingness to complete credit applications online. Eighty-three percent of online consumers surveyed responded that saving money would motivate them to apply for credit online, while an almost equal number (80 percent), said that an offer of credit from a known and trusted provider would be important in their decision.

"The importance of price is undeniable, and relationships matter in the online space," Swales said.

However, the basic fact remains that the percentage of people who actually apply for credit on the Internet is not that impressive. The study found that only 47 percent of Web credit shoppers actually applied online. Of this percentage, 61 percent of shoppers for a credit card completed an online application, while only 23 percent of people who researched mortgage loans applied online. The fewest percentage of people applying for credit online were those who were looking for an auto loan or a lease.

According to Maria Erickson, PSI Global executive vice president, research, the study's findings show that consumers were divided in their preference for a high-tech versus a low-tech approach to lending, with almost as many online credit shoppers preferring to complete the application face-to-face as using the automated online process.

# posted by Medical Information : 3:39 AM