LATHRUP VILLAGE, Mich.-A unique rewards credit card is helping to boost this state's economy and Michigan First CU's card program-increasing balances and skyrocketing new credit card apps.
Called the "Experience Michigan First Rewards VISA," the program returns points based on card purchases, but gives members more points if they make their purchases at Michigan businesses. The program was introduced in April, and MFCU's stagnant card balances are finally growing, up more than $1 million, as new card applications have gone from 70 per month to 700 over the course of April and May.
"Our credit card balances have remained about the same for the last 10 years, between $15 million and $16 million," said CEO Michael Poulos. "Now we are pushing $17 million. The response to this card has been extremely positive. I have never seen so many credit card applications. I think the members really like the fact this program is playing a role in helping to rebuild Michigan."
The card returns one point for every dollar spent, but 1.5 if the purchase is made in Michigan. Points can be redeemed for events, merchandise, downloads, travel, gift cards, attractions, or donations. Poulos believes the card compares favorably with national credit card rewards programs in value and options, but the local flavor gives it greater appeal.
"We knew we had to do something different," said Poulos, adding Michigan First entered the rewards market late in the game. "We had to do something to stand out, and this is it."
Picture Worth A Thousand Cards
What also makes the card resonate with Michigan residents across the state, according to the CEO, is the ability to choose the card image from 12 different card designs that capture Michigan scenery and landmarks. Poulos said Michigan First is working with Shoreline Business Solutions, Kingston, R.I., for card customization. "We had to find a vendor to print the plastic and give us all of these options. We work with RewardsNOW for redemption and PSCU for processing."
Poulos sees the program as a necessity to grow loans in a credit card market that is heating up. "People are getting more comfortable with the economic situation, they've paid down a lot of debt, and credit cards are growing."
Rewards across the FI, insists Poulos, are becoming more important to deepen relationships, and more members are simply demanding them. MFCU also offers MoneyPerks, which returns points for additional relationships that can be turned in for loan discounts, CD rate bumps, and fee refunds. Poulos said debit card rewards are on the agenda, however the CU will determine if it will pull the trigger after it evaluates the impact of the Durbin rules on MFCU interchange.
Poulos pointed out that "Experience Michigan First" carries two meanings, promoting the credit union and the state. "We really think this program covers all the bases, and the early results prove that to be true. We offer great rewards and are helping to rebuild Michigan. We think this appeals more to members than some big national rewards credit card."
