Note: Descriptions are shown in the official language in which they were submitted.
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CREDIT PREQUALIFICATION
AND GRANTING SYSTEM AND METHOD
The present invention relates to a system and method for prequalifying a
consumer for credit and selectively offering an opportunity to enroll or apply
for a credit
account to the consumer only if the consumer satisfies certain preselection
criteria.
More particularly, the invention relates to a system and method for
prequalifying and
selectively offering an opportunity to enroll or apply for a credit account
only to
consumers satisfying certain preselection criteria, wherein individual
consumers are
1 o automatically prequalified for credit at a point of contact between the
consumer and a
vendor and wherein the individual consumer is unaware that he or she is being
prequalified.
With the increasing use of the Internet by consumers, many vendors have
established a presence on the Internet by creating a website. Because the
Internet allows
for two-way communication between a vendor and a consumer, vendors not only
can
advertise products or services, but they can also receive customer orders on
the Internet.
Thus, the Internet offers great potential for transactional commerce.
What is needed is a system and method that allows for the automatic
prequalification of a consumer for credit at a point of contact between the
consumer and
a vendor wherein the consumer is not aware that he or she is being
prequalified and is
offered the opportunity to enroll or apply for a credit account only if he or
she satisfies
certain preselection criteria during the prequalification process. What is
also needed is a
system and method for automatically prequalifying a consumer when the consumer
places an order for goods and services wherein the consumer is not aware that
he or she
is being prequalified and wherein an opportunity to enroll or apply for a
credit account is
only provided if the consumer satisfies certain preselection criteria during
the
prequalification process.
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Summary of the Invention
The present invention provides a system and method for prequalifying
individual
consumers for credit and selectively offering an opportunity to enroll or
apply for a
credit account only to those consumers satisfying certain preselection
criteria. More
particularly, the invention provides a system and method for prequalifying and
selectively
offering an opportunity to enroll or apply for a credit account only to those
consumers
satisfying certain preselection criteria, wherein individual consumers are
automatically
prequalified for credit at a point of contact between a consumer and a vendor
and
wherein the consumer is unaware that he or she is being prequalified.
1 o In a preferred embodiment of the present invention, a system and method
for
prequalifying consumers for credit is provided, including: (a) automatically
prequalifying
a consumer for credit at a point of contact with a vendor; and, (b)
selectively offering an
opportunity to enroll or apply for a credit account only if the consumer
satisfies certain
preselection criteria; wherein the consumer is unaware that he or she is being
prequalified; wherein the prequalification process is facilitated using
information obtained
from the consumer by the vendor during the point of contact or at some
previous time,
which information may include, for example, one or more of the following: the
consumer's name, the consumer's home address, the consumer's shipping address,
the
consumer's social security number, the consumer's home telephone number and
the
2o consumer's e-mail address; and wherein the offer to enroll or apply for the
credit account
is made during the point of contact.
The point of contact between a consumer and a vendor arises when the consumer
and the vendor interact in person, over the phone or electronically, e.g., via
modem, over
the Internet, etc., for any reason. Preferably, the point of contact will
arise when a
consumer and a vendor interact to purchase/sell goods and/or services; to
register a
product for service or warranty purposes; or to request/provide information
about a
product or service. Most preferably, the point of contact arises when a
consumer visits a
vendor's website, when a consumer calls a vendor to place an order for goods
and/or
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services, when a vendor calls or electronically contacts a consumer to offer
for sale
goods and/or services, or when a vendor calls or electronically contacts a
consumer to
provide product or service information.
In another preferred embodiment of the present invention, a system and method
for prequalifying consumers for credit is provided, including: (a)
automatically
prequalifying a consumer for credit at a point of contact with a vendor; (b)
selectively
offering an opportunity to enroll or apply for a credit account only if the
consumer
satisfies certain preselection criteria; and, (c) instructing the consumer on
how to enroll
or apply for the credit account; wherein the consumer is unaware that he or
she is being
prequalified; wherein the prequalification process is facilitated using
information obtained
from the consumer by the vendor during the point of contact or at some
previous time,
which information may include, for example, one or more of the following: the
consumer's name, the consumer's home address, the consumer's shipping address,
the
consumer's social security number, the consumer's home telephone number and
the
consumer's e-mail address; and wherein the offer to enroll or apply for the
credit account
is made during the point of contact.
In another preferred embodiment of the present invention, a system and method
for prequalifying consumers for credit is provided, including: (a)
automatically
prequalifying a consumer for credit at a point of contact with a vendor; (b)
selectively
offering an opportunity to enroll or apply for a credit account only if the
consumer
satisfies certain preselection criteria; (c) obtaining from the consumer any
additional
information needed to complete an enrollment or credit application for the
credit
account; (d) processing the application; and, (e) immediately notifying the
consumer of
the results of the application, optionally, the consumer is immediately
notified of the
results of the application only if the consumer qualifies for a credit
account; wherein the
consumer is unaware that he or she is being prequalified; wherein the
prequalification
process is facilitated using information obtained from the consumer by the
vendor during
the point of contact or at some previous time, which information may include,
for
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example, one or more of the following: the consumer's name, the consumer's
home
address, the consumer's shipping address, the consumer's social security
number, the
consumer's home telephone number, and the consumer's e-mail address; and
wherein the
offer to enroll or apply for the credit account is made during the point of
contact with
the vendor.
In a preferred aspect of the present invention, a system is provided wherein a
vendor, at a point of contact with a consumer: (a) obtains information about
the
consumer; (b) accesses a computer system maintained by a credit grantor (i.e.,
any credit
granting institution; any agents of a credit granting institution; any
subcontractors of a
credit granting institution; any credit bureau, agent of a credit bureau or
any other
independent contractors acting under contract with and on behalf of a credit
granting
institution; and/or any other entities operated by or on behalf of a credit
granting
institution) and communicates the information about the consumer to the
computer
system where that information is compared to data regarding the
creditworthiness of a
multitude of individuals stored in a data base; (c) receives information from
the computer
system regarding whether the consumer prequalifies for a credit account; (d I)
if the
consumer does not prequalify, the vendor proceeds to step (e), or, (d2)
alternatively, if
the consumer does prequalify, the vendor advises the consumer of an
opportunity to
enroll or apply for a credit account and instructs the consumer on how to
enroll or apply;
and, (e) proceeds with the purpose of the point of contact.
In another preferred aspect of the present invention, a system is provided
wherein
a vendor, at a point of contact with a consumer: (a) obtains information about
the
consumer; (b) accesses a computer system maintained by a credit grantor (i.e.,
any credit
granting institution; any agents of a credit granting institution; any
subcontractors of a
credit granting institution; any credit bureau, agent of a credit bureau or
any other
independent contractors acting under contract with and on behalf of a credit
granting
institution; and/or any other entities operated by or on behalf of a credit
granting
institution) and communicates the information about the consumer to the
computer
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system where that information is compared to data regarding the
creditworthiness of a
multitude of individuals stored in a data base; (c) receives information from
the computer
system regarding whether the consumer prequalifies for a credit account; (d 1
) if the
consumer does not prequalify, the vendor proceeds to step (e), or, (d2)
alternatively, if
the consumer does prequalify, the vendor offers the consumer the opportunity
to enroll
or apply for a credit account and, if the consumer declines the offer, the
vendor proceeds
to step (e), alternatively, if the consumer agrees to enroll or apply, the
vendor: (i)
obtains additional information from the consumer as necessary to complete an
enrollment
or credit application for the credit account, (ii) accesses the computer
system and
communicates the additional information about the consumer to the computer
system
where that information is used to process the application, (iii) receives
information from
the computer system regarding whether the consumer qualifies for the credit
account,
and (iv) notifies the consumer whether the consumer qualifies, optionally, the
vendor
only notifies the consumer of the result of the application if the consumer
qualifies for
credit, otherwise the vendor informs the consumer that he or she will be
notified of the
result of the application via subsequent notification; (e) proceeds with the
purpose of the
point of contact, preferably, in the event the consumer qualifies for credit,
the consumer
is given the opportunity to use the credit account to complete a transaction
with the
vendor.
The prequalification step and the application/qualification steps preferably
take
place in real time, preferably the prequalification step is performed
simultaneously with
other steps taken to complete the transaction between the consumer and vendor
such
that the prequalification step does not increase the time necessary to
complete that
transaction.
In a preferred embodiment of the present invention, the data base is
maintained
by a credit bureau or an agent of a credit bureau under contract with and on
behalf of the
credit bureau or a credit granting institution. In a preferred aspect of the
present
invention, the data base is periodically updated with new consumer credit data
obtained
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from at least one credit bureau. Most preferably the data in the data base is
updated at
least quarterly.
Brief Description of the Drawing
Figure 1 is a schematic flow diagram of a preferred embodiment of the present
invention.
Detailed Description of the Invention
The system and method of the present invention preferably provides a means for
prequalifying and selectively offering an opportunity to enroll or apply for a
credit
account to those consumers satisfying certain preselection criteria, wherein
the
prequalification and opportunity to enroll or apply for credit occur during a
point of
contact between a consumer and a vendor and wherein the consumer is unaware
that he
or she is being prequalified.
The system and method of the present invention includes: (a) automatically
prequalifying a consumer for credit at a point of contact with a vendor; and,
(b)
selectively offering an opportunity to enroll or apply for a credit account to
the
consumer, only if the consumer satisfies certain preselection criteria;
wherein the
consumer is unaware that he or she is being prequalified; wherein the
prequalification
process is facilitated using information obtained from the consumer by the
vendor during
the point of contact or at some previous time, which information may include,
for
example, one or more of the following: the consumer's name, the consumer's
home
address, the consumer's shipping address, the consumer's social security
number, the
consumer's home telephone number, and the consumer's e-mail address; and
wherein the
offer to enroll or apply for a credit account is made during the point of
contact with the
vendor.
The term "point of contact" as used herein refers to a span of time during
which
a consumer and a vendor interact, for any reason, in person, over the phone or
electronically, e.g., via modem, over the Internet, etc. Preferably, the point
of contact
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arises when a consumer and a vendor interact to purchase/sell goods andlor
services, to
request/provide information about a product or service, to enroll or become a
registered
user in a service, or to register a product for service or warranty purposes.
Most
preferably, the point of contact arises when a consumer visits a vendor's
website, when a
consumer calls a vendor to place an order for goods and/or services, when a
vendor calls
or electronically contacts a consumer to offer for sale goods and/or services,
or when a
vendor calls or electronically contacts a consumer to provide product or
service
information.
The term "credit grantor" as used herein refers to any credit granting
institution;
any agents of a credit granting institution; any subcontractors of a credit
granting
institution; any credit bureau, agent of a credit bureau or any other
independent
contractors acting under contract with and on behalf of a credit granting
institution;
and/or any other entities operated by or on behalf of a credit granting
institution.
When consumers and vendors interact to transact business in person, over the
phone, or electronically, e.g., via modem, over the Internet, vendors often
request that
the consumer provide certain information. The information requested may
include one
or more of the following: the consumer's name, the consumer's home address,
the
consumer's shipping address, the consumer's social security number, the
consumer's
home telephone number, and the consumer's e-mail address. In the event the
consumer
2o desires to make a purchase, the information requested may further include a
credit card
number issued in the name of the consumer. Under the system and method of the
present invention, the information obtained by the vendor from the consumer is
used to
determine whether the consumer prequalifies for credit. Specifically, the
information is
compared to data regarding the creditworthiness of a multitude of individuals
stored in a
data base. In a most preferred aspect of the present invention, the data base
includes
identifying information only on those individuals who satisfy certain
preselection criteria.
For example, in one preferred aspect of the present invention, the data base
includes only
the name, address, social security number, home phone number and e-mail
address, if
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any, of individuals who satisfy certain preselection criteria. Preferably, the
data included
in the data base is updated periodically using information obtained from or by
at least
one credit bureau. Most preferably, the data included in the data base is
updated at least
quarterly.
The preselection criteria used to determine the creditworthiness of a given
individual may vary from one credit grantor to another. Notwithstanding, the
information used to determine an individual's creditworthiness is well known
in the
credit granting industry.
Figure 1 is a schematic flow diagram of a preferred embodiment of the system
and method of the present invention. The system and method of the invention
begins at
a point of contact between a consumer and a vendor, step S1. The vendor
obtains
information from the consumer, step S2. The vendor communicates this
information to a
credit grantor, which information the credit grantor uses to determine if the
consumer
prequalifies for a credit account, step S3. If the consumer does not
prequalify, the
vendor proceeds with the purpose of the point of contact. If the consumer
prequalifies,
the vendor: (a) advises the consumer of an opportunity to enroll or apply for
a credit
account, instructs the consumer on how to enroll or apply for the credit
account and
proceeds with the purpose of the point of contact, step S4(a); or,
alternatively, (b) offers
the consumer an opportunity to enroll or apply for the credit account, step
S4(b). If the
consumer declines the offer, the vendor proceeds with the purpose of the point
of
contact. If the consumer agrees to enroll or apply, the vendor obtains any
additional
information necessary to complete an enrollment or credit application, step
S5. The
information in the application is communicated to the credit grantor so that
the
application can be processed, step S6. If the consumer does not qualify for
credit, the
vendor preferably does not so advise the consumer. Rather, it is preferred
that the
vendor advise the consumer that he or she will be notified of the result of
the application
via subsequent notification, step S7(a) and proceeds with the purpose of the
point of
contact, step S10. Alternatively, if the application is approved, the consumer
is
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preferably so notified, more preferably, the consumer is further notified
regarding the
terms of the credit offered, step S7(b). Optionally, the vendor preferably
gives the
consumer the opportunity to use the new credit account to complete a
transaction with
the vendor during the point of contact, step S8. Optionally, the vendor
preferably offers
the consumer a benefit for using the new credit account to complete a
transaction during
the point of contact, step S9. The consumer and vendor proceed with the
purpose of the
point of contact, step S10.
The point of contact between the consumer and the vendor, step S1, as
described
above, is the span of time during which the consumer and the vendor interact,
preferably
1 o to transact business. Preferably, the point of contact between the
consumer and the
vendor occurs in person, over the telephone or electronically, e.g., via
modem, over the
Internet, most preferably, over the Internet.
The vendor may obtain information from the consumer, step S2, as a preliminary
matter. That is, for example, a vendor may request information from consumers
when
15 they visit the vendor's website, e.g., name, home address, shipping
address, social
security number, home phone number or e-mail address. The vendor may request
the
information from the consumer when the consumer requests to make a purchase of
goods and/or services from the vendor. Alternatively, the vendor may already
have on
record information regarding the consumer. For example, the vendor may retain
records
20 regarding consumers who have previously made a purchase from the vendor.
The
vendor may also retain records on prospective consumers who are, for example,
on the
vendor's mailing list.
Notwithstanding whether the vendor actively obtains the information from the
consumer during the point of contact or whether the information resides in the
vendor's
25 records, the method and system of the present invention requires that a
certain minimum
modicum of information be communicated to the credit grantor to facilitate
prequalification, step S3. The minimum modicum of information communicated may
preferably comprise at least one of the following:
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(a) consumer's name;
(b) consumer's home address;
(c) consumer's shipping address;
(d) consumer's e-mail address;
(e) consumer's home telephone number;
(fj consumer's social security number; and,
(g) other identifying information, for example, a credit card number or a
driver's license number.
Prequalification comprises a comparison of the consumer's information with
data
stored in a data base. The data base will include identifying information on a
multitude
of individuals along with an indication of each such individual's
creditworthiness. If the
consumer's data is included in the data base and is indicated to be
creditworthy, the
consumer will prequalify and the vendor will be so notified. Alternatively, if
the
consumer's data is not included in the data base or if the consumer's data is
included, but
the consumer is not indicated to be creditworthy, the vendor will be so
notified.
In the event the consumer prequalifies, the vendor will, in one aspect of this
embodiment of the present invention, (1) advise the consumer of an opportunity
to enroll
or apply for a credit account, (2) instruct the consumer on how to enroll or
apply for the
credit account and (3) proceed with the purpose of the point of contact, step
4(a).
Alternatively, in another aspect of this embodiment of the present invention,
the vendor
will provide the consumer with an offer to enroll or apply for credit, step
S4(b). If the
consumer agrees to enroll or apply, the vendor will obtain any additional
information
needed to complete an enrollment or credit application, step S5. The
information used
to perform credit checks and to enroll or apply for credit are well known in
the credit
industry.
The information included in the enrollment or credit application is
communicated
from the vendor to the credit grantor for processing, step S6. The procedures
used to
process enrollment or credit applications are well known in the credit
industry.
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In the event the application is denied, to minimize the cost to the vendor of
any
adverse reaction caused by the denial of the application, it is preferred that
the vendor
not be the party to inform the consumer of a denied application. Accordingly,
the
vendor will preferably inform the consumer that he or she will be notified of
the result of
the enrollment or application for credit via subsequent notification, step
S7(a).
Alternatively, in the event the application is approved, the consumer will be
notified by the vendor that the application was approved and, optionally, of
the terms
and conditions of the credit account, step S7(b). Preferably, the credit
grantor will
create a customized credit account offer to the consumer based on the
consumer's
1 o profile and level of creditworthiness. For example, the customizable
features of the
credit account may include the product type, e.g. gold card, platinum card,
and the like;
annual percentage rate; annual fee; rewards programs; and the like.
Preferably, in the event the consumer decides to make a purchase of goods
and/or services from the vendor, the vendor will ask the consumer if he or she
would like
to use the new credit account to make that purchase, step S8. More preferably,
the
vendor will, optionally, additionally offer the consumer a benefit if the
consumer uses the
new credit account to make a purchase of goods and/or services, step S9. The
benefit
might comprise, for example, free merchandise, free shipping, a discount on
the goods
and/or services being purchased, etc.
Preferably, the information communicated back and forth between the consumer
and vendor and may be transferred face to face in person, over the telephone,
or
electronically using any means of data communication. The communication back
and
forth between the vendor and credit grantor may be transferred electronically
using any
means of data communication.
In a preferred embodiment of the present invention, a consumer using an
interactive device connects to the Internet and accesses any one of a number
of ever
increasing vendor websites and initiates a transaction, preferably a purchase
of goods
and/or services. The vendor website prompts the consumer to provide certain
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information, for example, the consumer's name and address. Upon receipt of the
requested information, the vendor website preferably initiates a
prequalification process
by transmitting the information to a credit grantor's computer system were the
information is compared to data regarding the creditworthiness of a multitude
of
individuals stored in a data base. The credit grantor's computer system
communicates
the result of the prequalification to the vendor website. If the consumer
prequalifies, the
vendor website will prompt the consumer with a screen display offering the
consumer an
opportunity to enroll or apply for credit or to proceed with the
consumer/vendor
transaction. Should the consumer proceed by completing the application for
credit by
inputting the necessary information, that information is communicated to the
credit
grantor's computer system where the application is processed. The result of
the
application process is communicated to the vendor website. The vendor website
notifies
the consumer of an approved application with a screen displaying the terms and
conditions of the credit account. Alternatively, the vendor website notifies
the consumer
of a denied application by displaying a screen which states that the
application has been
denied or that the consumer will be notified regarding the result of the
application via
subsequent communication. Optionally, if the application is approved, the
vendor
website preferably prompts the consumer with a screen display which inquires
whether
the consumer wishes to use the new credit account to make a purchase. In
addition, the
inquiry preferably includes a statement offering some benefit to the consumer
for using
the new credit account to make a purchase, e.g., free shipping, price discount
on
merchandise purchased.
The interactive device used by the consumer preferably comprises a computer
with a keyboard, a pointing device, such as a mouse or a wand, a touch screen
display
device, or some combination thereof.
The consumer's interactive device, the vendor website and the credit grantor's
computer system are preferably all inter-connected through the Internet, via
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telecommunication lines, data transmission cables or any other means
facilitating the
transmission of data therebetween.
Under the present invention, the credit grantor's computer system may comprise
a plurality of computers and data storage facilities that are electronically
interconnected
with one another through the Internet, an intranet, via telecommunication
lines, data
transmission cables or any other means facilitating the transmission of data
therebetween.
One skilled in the art will recognize that the specific computer (or
computers) which
accesses the memory means, comprising the data base storing the information
regarding
the creditworthiness of a multitude of individuals, to perform the
prequalification may be
different from the computer (or computers) used to process the enrollment or
credit
application. Notwithstanding, one skilled in the art will recognize that both
the
computer (or computers) that accesses the memory means comprising the data
base and
the computer (or computers) that processes the application are all part of the
credit
grantor's computer system.
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