Credit Unions Display Wide Range of Credit Card Performance

The credit union loan portfolio has thrived over the past few years thanks mainly to impressive growth in real estate and auto loans, but the credit union industry has run into difficulty growing balances for its highest yielding loan product: credit cards.

 
 

The credit union loan portfolio has thrived over the past few years thanks mainly to impressive growth in real estate and auto loans, but the credit union industry has run into difficulty growing balances for its highest yielding loan product: credit cards.

Credit card balances for the nation’s 9,570 credit unions grew just 2% in 2003, which was actually higher than the 1.5% growth in 2002. Even though credit union credit card growth was slightly positive, most credit unions, over 58%, had negative growth in credit card balances in 2003.

Although the industry as a whole has had trouble boosting credit card balances, there are many credit unions experiencing ongoing success, growing balances at significant levels. Below is a table of the Top 10 credit unions in credit card balance growth (in dollars) in 2003. These best-in-class performers have used a variety of ways to get their members to sign up for and use credit cards, including targeted marketing and relationship-based pricing.

 

 

 

May 10, 2004


Comments

 
 
 
  • We aren't keeping up with the banking industry.
    Anonymous
     
     
     
  • We aren't keeping up with the banking industry.
    Anonymous
     
     
     
  • There are a number of resources available on CreditUnions.com. Use the Site Search in the green bar above to search all of our articles on credit card lending. In addition, take a look at the report written in 2003 titled Strategies for Credit Card Portfolio Growth -- it also discusses options on selling your portfolio. http://www.creditunions.com/solutions/research/creditcard.htm
    Anonymous
     
     
     
  • There are a number of resources available on CreditUnions.com. Another article on NOT selling is available at http://www.creditunions.com/solutions/research/creditcard.htm. A report written in 2003 titled Strategies for Credit Card Portfolio Growth also includes options on selling your portfolio. http://www.creditunions.com/solutions/research/creditcard.htm
    Anonymous
     
     
     
  • There are a number of resources available on CreditUnions.com. Another article on NOT selling is available at http://www.creditunions.com/solutions/research/creditcard.htm. A report written in 2003 titled Strategies for Credit Card Portfolio Growth also includes options on selling your portfolio. http://www.creditunions.com/solutions/research/creditcard.htm
    Anonymous
     
     
     
  • Secured Loans vs Unsecured Loans -- Credit Unions need to make a choice. Even though many credit unions are selling their cc loans, they are able to replace those loans 2 fold. Maybe an article on CU's that sold and what has the impact been on the bottom line would be good.
    Anonymous
     
     
     
  • i will like to have my own personal credit card
    Anonymous