Oct. 23, 2006


  • I commend credit unions who honor their members by providing in-house credit cards for their members. I have several credit cards and rarely use them. I was shocked to read the new terms on my business card - the defaul rate is 32.24% and finance charges accrue as soon as the transaction is posted to my account. Needless to say, that is one card I will never use. I'll stick with my credit union provided card - where I believe they have my best interest at heart - and I feel valued, not derailed by the greed of the BIN owner.
  • I've never been a proponent of selling your card portfoilo, even though credit cards have been the red-headed stepchild of credit unions for years our Members have a need for this product. It is great to see our market share increase. Kudos to all of you who are changing your strategies in this area.
  • This development should add some interesting fuel to the card portfolio debate. The keep/reinvest/sell decision will depend in part on resource allocation and capabilities but it is nevertheless heartening to hear these success stories and how credit unions are tailoring their approaches.
  • Your article does not indicate if there was an increase in utilization at the same time balances increased. I believe that is the true indicator of a successful program. We found that we could grow accounts and balances, but not utilization. It is a very complex subject with no one answer for any credit union. We opted to sell and partner our card portfolio. That may not be the right choice for your CU, but it was ours and it has proven to be the right decision for us.
    Jerry Liudahl, Oregon Community CU
  • Good article. We made a decision 2 years ago to keep our portfolio. We have focused on marketing, products, rewards, points promotions, activation and utilization. We have experienced 12 - 15% growth each of the last two years. A recent survey of our members indicates that our members use our card about 50% of the time, and another bank card 50%. That's not bad. We can compete.
    John Ruby, Bellco, Denver, CO