The expansion of co-branded credit card options to the non-prime consumer segment help boost consumer engagement while offering consumers the potential to “graduate” to more robust credit access as their financial health improves, Concora Credit Chief Commercial Officer Rolando De Gracia told. To achieve this, the company collaborates with partners on program design, recognizing that non-prime consumers will likely yield a “lower revenue share” for the issuer. A core component of this inclusive strategy is the concept of a starter card. For non-prime customers, a starter card provides an entry point to lead to a “graduation strategy,” he said. That strategy addresses the often-rapid credit improvement seen in non-prime consumers who consistently make payments. Unlike prime consumers whose FICO scores remain relatively stable with on-time payments, non-prime individuals — whose credit may have declined due to life events like healthcare issues, divorce or unemployment — can see their credit profiles increase with haste. Approximately 30% of Concora Credit’s cardholders will improve their FICO score sufficiently within six or seven months to become eligible for the partner’s primary “champion product.” Concora Credit facilitates this by collaborating with the partner’s primary bank, providing lists of eligible cardholders. When these consumers are identified as having improved their FICO score by hundreds of points, they are often offered the prime product. The graduation strategy also strengthens the partnership between brands and issuers. When a retailer, for instance, sees approval rates at the point of sale jump from 50% to 70% due to an alternative product launched in tandem with Concora Credit, issuers and merchants become more confident and “motivated to pitch the product,” De Gracia said.