receives compensation from some of the companies listed on this page. Advertising Disclosure


Top Ways to Convert Subprime Leads Into Customers

Jay Smith
Jay Smith

Subprime loan applicants can be valuable customers.

With the increasing competition today, loan officers, mortgage brokers and private lenders seem to keep searching for ways to convert subprime leads into customers.

You might be amazed to learn that subprime leads in America alone are worth more than $1 trillion. Thus, it is necessary to understand how to convert these subprime leads to profits. 

What are subprime loans?

A subprime loan is a kind of personal loan that is provided to a borrower who reluctantly applies for a subprime loan because they were rejected by the bank or private lender due to a poor credit score. When banks and lenders do not facilitate people with a loan due to their high-risk income ratio, they look for the alternative and end up with money lenders and become high-risk borrowers.

What is a low personal loan interest rate?

The interest rate of a personal loan is between 8% and 34%. Usually, banks and credit unions offer personal loans at a 20% interest rate. However, some private lenders can provide subprime loans at a minimum 10% interest rate. Variations in the interest rate depend on the lender. With the enhanced competition and high expenditure ratio of the population, these lenders widen up the gate of opportunities to borrow money other than official financial institutions and sustain.

How are personal loans used?

A personal loan is a facilitation of money to the borrower depending on their income level. Sometimes, personal loans can be as simple as signature loans or credit loans, which can go through banks or private lenders. Personal loans include credit cards and signature loans from the bank. Loans from online lenders and peer-to-peer lenders often are personal loans.

Editor's note: Looking for a business loan? Fill out the below questionnaire to be connected with vendors that can help.

How can you convert your subprime leads into your customers?

It is evident that subprime leads are the best option marketers have to connect with customers who are looking for a personal loan. Sometimes, customers are hard to bring to the table.

You cannot blame them. A poor credit rating is probably the root cause. Alternatively, maybe they are facing foreclosure with a credit score of 500. They do not want to go for another loan. As a result, you, being a marketer, will want to make yourself the master of closing subprime leads.

The best possible way is where one can communicate with lenders who deal with foreclosures and clients with poor credit. You can also contact bank loan agents handling customers with bankruptcy.

Consider these points for converting the subprime leads into customers.

1. Make hesitant clients come your way.

A low credit score may flag a customer with a high credit risk and fewer chances of loan approval from banks, which in turn makes them try for a subprime loan. Thus, the priority should be to work with a particular target to bail these customers out of the dark circle. The feeling of a poor credit score often leads people to the negative impression that they will never be able to fulfill the dream of their own house.

Moreover, highly reputable banks have high expectations customers must meet before they grant any loan, making it nearly impossible for most middle-class people to face this challenging situation.

2. Over-communicate throughout the lending process and continue to send updates.

Money lenders are required to be informative when planning to convert subprime leads into customers. This interests borrowers to read about significant developments and guidelines in the mortgage industry.

For instance, in 2017, TD Bank conducted a survey to evaluate the performance of the real estate agents valued in a mortgage loanofficer. The result was positive, with 80% receiving a response due to effective communication.

The best way is to reach out to subprime leads with weekly updates. This not only keeps them informed but also helps them acknowledge that you are taking care of your borrowers, and that makes a big deal.

3. Post a FAQs page on your website.

A FAQs page plays a vital role in any online business. For instance, when a client has never been in contact with you, the website is the link between prospective clients and your business. Hence, a professionally designed website with a FAQs page is crucial.

Use this page to help clients better understand your product or service. This will be done through your esteemed associates who share a thorough knowledge of the industry and understand what the customers would want to know.

Once this list of pointers is done, compile a message for your leads, and share them using our ringless voicemail service, introducing yourself and taking them to your website. If you wish to share specific information, you can use the rich text messaging service to deliver a message with a link preview to land directly on your website. This will also allow you to track them and study the audience you could successfully convert. This study can help you retarget more efficiently.

While these methods of closing your leads sound appealing and innovative, at the same time, you require marketing assistance to carry them out. Thus, the service suggestion feature stands to meet your direct marketing needs, which helps businesses connect with their leads effectively, at the right time and with the right message.

The cloud-based predictive dialer services, for instance, can be used to follow up with your leads. It runs a follow-up campaign with your message, including the rich text messaging service, helping you deliver your message loud and clear.

Image Credit: Antonio Guillem/Shutterstock
Jay Smith
Jay Smith Member
Jay is a backbone of Leadsrain, being a CEO and co-founder, he has always proved to be the robust domain person. Being an integral part of the company he assures uncluttered functionality of his products and services. With more than a decade of his experience, he precisely stands up with unparalleled competency for his clients and people.