Every day, eager shoppers visit stores ready to make purchases but lack access to the credit they need. With 40% of Americans having credit scores below 700 and many living paycheck-to-paycheck, many consumers struggle to qualify for traditional credit options. When customers are denied credit, retailers lose not just an immediate sale, but a potential long-term relationship.
This is where second look credit card financing comes in: designed for consumers who may not qualify for prime lending, second look payment solutions offer an alternative path to approval. By providing more inclusive financing options like second look financing, your business can increase earnings and foster customer loyalty while delivering a seamless and positive shopping experience.
The Cost of Missed Opportunities
When a customer applies for a retailer’s credit card and gets denied, it represents a missed sales opportunity for a retailer. This impact is greater for retailers selling big-ticket items, where financing is crucial in a customer’s purchasing decision. Feeling rejected and unable to complete their purchase, customers may become discouraged from returning to the store for future shopping.
Retailers that offer second look credit card financing can convert more shoppers into buyers by potentially approving those declined by a prime lender. Many of these consumers remain creditworthy despite having less-than-perfect credit, and second look financing can allow your business to capture revenue that would otherwise be lost.
Building Stronger Customer Relationships
Customers who receive second look credit often develop stronger loyalty; they may view your business as a trusted partner who gave them an opportunity when others did not.
This can lead to:
- Larger average transaction sizes
- More frequent purchases
- Stronger brand affinity
- Repeat business and higher customer lifetime value
How Second Look Credit Card Financing Works
Second look credit financing is for customers who don’t qualify for traditional credit card programs. Unlike prime lenders that base their credit approvals primarily on FICO, second look providers like Fortiva Retail Credit look deeper than credit scores. With a deep understanding of the less-than-prime consumer, Fortiva Retail Credit’s decisioning models allow customers to receive a yes when prime issuers decline.
Instead of receiving an outright denial, customers rejected by the primary lender are automatically reviewed through a second look credit process with a quick, paperless application.
Your business can structure your second look credit financing in two ways:
- Private Label Credit Cards: These store-branded credit cards are exclusively used at your retail locations. They drive brand loyalty by encouraging repeat purchases and can be paired with any exclusive promotions or programs.
- Co-Branded Credit Cards: These cards can be used anywhere Visa or Mastercard is accepted, providing greater flexibility for your customer while still promoting your brand.
A major advantage of second look credit card financing is that it helps removes uncertainty for consumers who might assume they won’t qualify for credit. Instead of walking away, they may receive an immediate alternative financing option, allowing them to proceed with their purchase confidently.
3 Advantages of Second Look Credit Card Financing
There are several key benefits to offering your customers access to second look credit card financing:
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Increased Revenue and Higher Approval Rates
By offering second look credit card financing, your business can significantly increase customer credit approval rates, which results in higher sales. Offering an alternative financing option can enable you to recapture a portion of transactions that would otherwise be lost.
Second look credit cards can also lead to higher average transaction values. Customers who have access to a store credit card tend to spend more per transaction than those who pay with cash or debit. With the flexibility to pay over time through retailer financing, these customers may opt for better quality, higher-margin items, further increasing your business’s revenue potential.
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Stronger Customer Loyalty and Repeat Purchases
A second look financing option can create a built-in incentive for customers to return. Retailers that offer financing solutions tailored to their shoppers’ needs build deeper brand loyalty and long-term customer relationships.
Second look credit financing not only increases financial accessibility but can also help foster a sense of trust in your customers; this can encourage repeat purchases and higher engagement with your brand.
Your second look credit customers may become brand advocates and recommend your store to friends and family who face similar credit challenges. These referrals can help expand your customer base and enhance your reputation as an inclusive, customer-friendly retailer.
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Seamless Financing: Meeting Customers Where They Shop
Today’s customers want a smooth and hassle-free financing experience no matter where they shop. Fortiva’s second look financing integrates seamlessly with leading prime lenders. This ensures that when customers are declined by a primary provider, they’re instantly considered for alternative financing.
By making second look credit available to your customers, your business can improve conversion rates and help ensure that financing is never a barrier to purchase.
Why Fortiva Retail Credit Stands Out
With 29 years of experience in less-than-prime and second look credit financing, Fortiva Retail Credit is the largest and only publicly traded servicer specializing in second look credit solutions.
Our automated decision process enhances credit assessments by leveraging our proprietary underwriting technology to analyze a broader set of data. This approach allows us to evaluate creditworthiness and approve more customers than relying on FICO scores alone.
This nuanced understanding of your customer’s creditworthiness allows you to offer tailored credit card financing solutions that align with their individual financial profiles.
Our system also streamlines the approval process, reducing the time your customers have to wait for credit decisions. Fortiva’s cloud-based infrastructure ensures efficient and reliable performance to support your second look credit card financing.
Retailers who rely solely on prime credit card approvals may be missing out on sales. With second look credit card financing, you can reach an untapped market, providing access to millions of customers who are eager to shop but need an alternative financing solution.
By partnering with Fortiva Retail Credit, your business can expand its customer base, increase sales, and build long-term loyalty. The ability to provide a flexible financing solution isn’t just a competitive advantage; it’s also a key strategy for retailers looking to maximize growth in today’s market.
Contact us today to learn how second look credit card financing can help transform your business.