2 minutes
The right credit card program can keep life from derailing them.
Sponsored by LSC
There’s an old philosophy that goes something like this: “If I don’t have the money for something, I just don’t buy it.”
In many, if not most scenarios, that is smart, practical thinking. Irresponsible spending gets many of us into trouble. Especially when we’re young, and particularly when we get our hands on our first credit card. As a credit union that builds relationships with its members, you need to do your part to counsel members about responsible money management. Prudent financial advice like the adage above seems fairly sound and straightforward.
What about those times, however, when members don’t have the money for something . . . but they have no choice but to buy it? For instance, the day the furnace gives out, or the hot water heater decides it won’t heat the water anymore. You and I both know these things are more likely to happen in December or January than in July. Does your credit union have a plan to help? T
hese are very realistic scenarios when a credit card can be not only a good thing, but a life saver. The right low-interest card will not only offer benefits to your members, but to your credit union as well.
“I’m just delighted to be adding some non-interest generated revenue for my credit union,” says Jennifer Marshall, manager of $2.2 million Towns-Union Educators Federal Credit Union, Young Harris, Ga., which recently implemented the EZ Launch program from LSC®. “I’m so grateful for the ability to offer this great opportunity to my members.” When looking at the various credit cards available, consider programs that offer the following:
- fast, easy implementation
- no additional expense to your credit union
- free marketing materials
- incremental income for your credit union – (example: 5 percent of all finance charges on outstanding balances )
- rewards for your members
A card can be the best and sometimes only option members have for dealing with unexpected expenses life throws at them. Offering a good, low-interest credit card is like giving them a financial insurance policy. Your members can use it to handle unexpected expenses, avoid getting completely derailed and get back on track to achieving their financial goals.
Bart Scott is marketing communications coordinator for LSC, the Illinois Credit Union League service corporation.
