Home Equity Lines of Credit (HELOCs) are a popular loan product. Discover new ways to market them and promote their use.
HELOCs continue to be one of the most popular loan products in the marketplace today—and for financial institutions, they can be good for the bottom line, due to the low cost of the funds.
Despite the fact that interest paid on a HELOC now is not universally deductible for federal income tax purposes, these lines are still popular—in part, due to their flexibility. Consumers can—and do—use them to fund home improvements, weddings, college tuition, vacations, and much more.
Taking these three steps can help you develop a successful HELOC marketing strategy:
1. Refine the audience
To identify an optimal audience for your marketing purposes, you may wish to:
- Use Purchase Power, which is a risk proxy that utilizes summarized credit data to predict the likely credit risk for individuals in a small geographic area
- Identify people who are homeowners and are likely to have equity in their home.
2. Refine the data
You can refine your equity data by selecting from over 1,000 demographic, behavioral, and lifestyle attributes, such as purchase price/date, mortgage amount, loan-to-value ratio, and home value.
3. Utilize a distance study
A distance study, in tandem with the equity customer data you’ve identified, can help you determine the primary footprint for your marketing program.
Information is power…use the right data to help your marketing plan succeed.