Upbound Group, a provider of consumer leasing services, has forged an agreement with Genesis Financial Solutions, a provider of near-prime consumer financial services, to provide credit solutions to customers in its platform of brands, including Rent-A-Center and Acima.
As part of the agreement, Genesis will serve as program manager and service a general-purpose credit card for qualified Rent-A-Center and Acima customers, as well as a second-look point-of-sale private label credit card to approve initially declined applicants for Acima’s network of retail merchant partners.
This partnership showcases the enduring value of co-brand and private label credit card products and, more specifically, the potential for second-look services to approve credit applicants who were initially declined. In a recent Auriemma study, 37% of cardholders indicated they had been declined for a credit or store card application. And of the one-fifth offered a second look offer, 76% accepted the alternative card.
With credit conditions expected to tighten at lenders across the country, second look is more valuable than ever for converting more applicants to cardholders.