Land ceilings, occupational criteria and asset valuations are commonly used for targeting purposes by credit agencies aiming to direct resources to the rural poor. However a mixture of demand and supply side factors leads to the inclusion of a small group of ‘non target’ households in these credit programmes. This paper starts by examining the differing characteristics of the ‘properly targeted’ versus these ‘non eligible’ members. The next section uses multivariate analysis to identify the characteristics, which lead to participation in a credit programme. The second part of the paper looks at the ‘depth’ of participation of programme members using a set of credit based indicators. Differences between ‘correctly targeted’ and ‘non target’ households are examined in terms of ‘participation depth’ and multivariate analysis is again used to shed light on the possible determinants of active participation. The concluding section looks at the implications of the earlier analysis for microcredit policy. The paper uses data collected by the author as a team member of the BRAC-ICDDR,B joint research project in fourteen villages in Matlab thana, Bangladesh. BRAC ‘s Rural Development Programme (RDP) has been operating in ten of these villages for three years to the data being collected and will be used as the microcredit programme under study.