Modelling the purchase propensity: analysis of a revolving store card

We investigate the incremental roles of information that becomes available only after a revolving loan has been granted in explaining and predicting the time taken until the borrower makes a second purchase. Using data relating to a store card, granted around the time of first purchase and used in Belgium, we find that characteristics of a first purchase and remaining credit available for use enhance the explanatory and predictive power of application characteristics. The relationship differs between good and poor payers.