Credit unions are gearing up for the holidays, setting in motion a sleigh-full of annual year-end promos aimed at helping members enjoy and cope with a season that's often as stressful as it's supposed to be jolly.
Here's what six CUs are up to:
Debit Cash Giveaway
Postal Credit Union has an annual holiday tradition that gives members a year-end boost and drives more debit transactions.
The $560 million credit union in Woodbury, Minn., has brought back its popular $1,000 Debit Card Giveaway. To qualify, members register for the promotion on the CU's website, and then each time they swipe their CU debit card they earn a chance to win one of the weekly $1,000 random cash prize drawings. Members earn 100 bonus entries when they make 25 or more purchases within one week.
"Our $1,000 Debit Card Giveaway is a fun way to reward members for using their PCU Cash & Check Card, especially during the busy holiday season when convenience and access to funds are so important," said CEO Brian Sherrick.
The offer runs Nov. 25-Dec. 22.
12-12-12 Loan
Naheola Credit Union in Demopolis, Ala., has a holiday loan promo that's easy to remember — the "12-12-12 loan."
"Translation: $1,200 at 12% for 12 months," said Mark Johnson, CEO of the $77 million CU. "Although most of our loans are risk based, this particular loan product has been offered for many years and we have continued to offer this even after we implemented risk based lending."
Johnson said the loan is another way to help members enjoy and afford the holidays. "And we have had good success with repayment. In fact, our average beacon score on these loans year-to-date is 561, and we expect more than $100,000 in loans by Christmas."
Higher Limits For Holiday Spending
The $240 million Piedmont Advantage CU in Winston Salem, N.C., hopes to grab greater share of its members' holiday spending by increasing credit card limits. Marketing Manager Ken Reszel said a recent mailing was successful at getting all cardholders targeted to take a higher line of credit.
"We already have a great low 7.9% non-variable rate," said Reszel, who expects the move will deepen relationships as cardholders consolidate their debt and bring over balances. "We are also participating in the NFL Visa debit card promotion, where someone wins a trip to this year's Super Bowl in New York City."
Christmas Cash
In Henryetta, Okla., First Family FCU is playing Santa this year with its annual Christmas loan special and a Christmas loan deferral program. The loan special is unsecured, charging 6.96% APR for 18 months. Members can borrow up to $5,000.
CEO David Dykes, Jr., said the skip-a-payment program is also extremely popular with members this time of year, saying they get "extra cash for the holiday season and the credit union wins with the loan staying on the credit unions balance sheet a little longer."
The $52 million credit union also charges members a $25 processing fee. Dykes said members begin calling for the deals in September. "We are a low-income designated credit union and our members often need help at the end of the year. We are happy to lend a hand."
Promos Build Deeper Ties
Mike Bridges, VP of communications at the League of Southeastern CUs said that credit unions in Florida and Alabama use year-end promotions not onlyto help the membership but also build stronger relationships.
Bridges said most campaigns are loan promos, typically skip-a-payments of $1,000 to $2,000 and holiday loans that can be paid back in 12 months or sooner.
"We have seen one credit union ask its members to participate in a video contest to determine what the theme should be for its holiday loan program," said Bridges. "This is an excellent way to engage the membership and let them be part of the promotion. These efforts make the holidays better for members. In some cases they keep members from running up credit card bills or more long-term debt."
$500 The Easy Way
Memorial Employees FCU in Hollywood, Fla., is running a $500 no-credit-check holiday loan.
"We offer the loan applications for about a two-week period and then fund the money the Tuesday before Black Friday," said Jennifer Gerson, director of marketing and administration at the $53 million shop. "We do not make the first payment due until after the holidays and it is a six-month repayment term. There are certain restrictions to qualify based on length of employment, credit union membership, but no credit qualifications are necessary."
