Versatile Credit Sees Increase in Holiday Credit Approvals

January 14, 2015  by in Economic News, Industry   

The company enabled about $255 million in approved credit in major retail outlets between Nov. 29 and Jan. 5. The Versatile solution links lenders with consumers applying for credit in retail stores. 

The $254.8 million in approved credit was an increase of 18 percent over Versatile’s 2013 extended holiday shopping season.

“Our numbers correlate with those from the Federal Reserve Bank to show consumer credit is growing at rates we haven’t seen since before the 2008 recession,” said Rob Meyer, executive vice president, product and marketing, for Versatile Credit. “That’s important for many high-ticket retailers such as furniture, flooring, mattress, jewelry, automotive and electronics stores.”

The Versatile Credit system facilitated nearly 74,000 credit applications during the recent shopping season, with a 71 percent approval rate and an average of $4,851 in credit per approval.

Versatile’s self-service credit system provides consumers with a private, secure and quick credit application process. It connects credit-seeking consumers to more than 20 potential lenders. If the retailer’s primary lender denies credit, the application is automatically sent to secondary lenders – reducing credit denials by up to 40 percent. Credit decisions are generally received in seconds.

Retailers using the system typically report a 20 percent increase in credit applications and increases of 15 percent or more in transaction size. Since 2007, consumer applications using the Versatile Credit system have resulted in more than $9 billion in approved credit. 

“Our numbers from the recent extended holiday shopping season provide reason for high-ticket retailers to be optimistic in the new year,” Meyer said.