Improves Credit Quality
Draws a higher share of low-risk revolvers
Attracts customers who can make the higher payments & thereby earn more savings
Higher payments = Lower risk
Proven relationship between higher payments and lower customer default
Fundamental basis of behavior scoring
Creates new risk separator for future modeling
Self-directed risk-based pricing leads to better correlation of risk with interest charge savings
Improve loss rates
Higher quality receivables flow in to obtain savings benefit
Improve collections effectiveness
Movement to lower payment tiers provides advance signal of increasing risk
Demonstrates a willingness to 'work with' the customer
Encourages payment priority to you
