Credit Cards for the Recently Right-Sized?
NextCard signs a co-marketing deal with CompuCredit to offer credit cards to"under served consumer segments" via the Internet.
San Francisco-based Internet credit card company NextCard Inc. signed a marketing alliance with CompuCredit Corp. aimed at making credit card offers “to consumers overlooked by traditional credit card providers.”
The arrangement, perhaps an offer made in heaven for recently right-sized dot com-ers, provides consumers who are not eligible for a NextCard the opportunity to receive a firm offer for a co-branded credit card marketed by Atlanta-based CompuCredit .
CompuCredit uses proprietary analytical techniques and information from credit bureaus to identify customers who it believes are credit-worthy but are being overlooked by more traditional consumer credit providers.
CompuCredit will manage the customer relationship and NextCard will receive an unspecified per-customer payment for each co-branded account.
“This alliance with CompuCredit allows NextCard to provide a product to applicants who are outside of our target credit population,” said John Hashman, chief executive officer at NextCard. “This agreement leverages our marketing expertise and technology and provides an opportunity to monetize our site traffic and applicant volume.”
Launched in 1997, NextCard claims to be the first company to offer instant online credit card approval. NextCard last week reported a second quarter net loss of $14.4 million, or 27 cents per share. Operating revenue came in at about $81 million, up 144 percent from a year earlier. The company has yet to record a profitable quarter, but has been steadily cutting its losses.
