Target Credit Users, Not Just Credit Takers, in the New Lending Marketing Era

Executive Summary

• Acquisition costs are up 45% since 2020, but over half of new credit accounts remain inactive. Traditional prescreen methods are no longer sufficient in today’s high-cost, high-competition environment.
• Only 9% to 31% of prescreened prospects actually match the profile of engaged users. Lenders must shift from targeting acceptance to targeting likely long-term product usage and engagement.
• Agile marketing with precision targeting delivers 26% higher origination rates. Using geodemographic data and behavioral insights to find ideal customers significantly improves ROI without overhauling existing systems.

In our previous article, we explored why financial institutions are embracing agile marketing. The takeaway was clear: In a world of rapid change and rising expectations, agility isn’t just a competitive advantage; it’s a necessity. Now, we turn that “why” into a “how” by looking at a critical application of that agility: customer acquisition.

As the credit shopping ecosystem evolves, so must the strategies lenders use to engage consumers. One area of is targeting; more specifically, focusing on the right people — not just those who will take a product, but those who will use it. These are the consumers who look and behave like your most engaged customers. And in today’s environment, they’re key to profitable growth. Let’s dive in.

The Credit Shopping Landscape In 2025

Rising costs, shifting consumer behaviors and increasing competition continue to define the current credit marketplace. Acquisition costs, for example, are up roughly 45% since 2020 due largely to incentive inflation, AI-driven targeting and data privacy regulations, according to Fintel Connect’s 2025 Benchmarking Guide.

At the same time, credit card delinquencies have been increasing. Serious delinquencies (90+ days past due) are expected to rise to 2.76% in 2025, continuing a five-year upward trend. The current share of overall credit card debt in delinquency has been at its highest level since the Great Recession — and the share of people in delinquency has surpassed levels from that time. While more than half (55%) of U.S. consumers are optimistic about their household finances in the next 12 months and more consumers are shopping for credit, fewer are maintaining healthy usage patterns, making it even more critical for financial institutions to focus on acquiring not just any customer — but the right one.

Adding to the complexity, only about 40% of newly acquired card accounts (those opened within the last 24 months) are considered “active” — those who regularly transact and carry meaningful balances. This suggests more than half of new accounts may not deliver the expected return on acquisition investment.