Card Balances Soar Following Promotions By Wescom Credit Union
Wescom Credit Union said it grew outstanding credit card balances by 22% during 2004, thanks to a sieres of promotions. Balances stood at $107 million at the end of the promotion, up from $88 million when it began.
The credit union staged the promotions in conjunction with PSCU Financial Services, St. Petersburg, Fla., which provides its CreditAbility platform to Wescom.
The increase in balance outstandings stemmed in part from an influx of new cardholders. Wescom rolled out a credit card promotion and pre-approval in which it gave every new cardholder 1,000 CURewards points, redeemable for merchandise or travel. During that promotion, Wescom CU gained 4,000 new cardholders, compared to an average of 1,000 new cardholders for past promotions. It also offered a 5.9% interest rate on balance transfers.