Is Your Credit Card In All Of Your Customers' Pockets?
Do you experience your members or customers falling victim to department store credit cards offering 10-20% off purchases? Are your customers going with huge national credit card companies offering all kinds of perks, rewards, or flyer miles, only to find themselves having paid the minimum payment and now have a large balance with a rate of 30% or higher? Don't worry you're not alone.
Over 40% of households carry credit card debt and people aren't sure what's available to them to try and get that paid down.
Remind People to Consider Local Options for Long-Term Credit Cards
What many people don't realize is that local credit unions or community banks also offer solid credit card options. Typically the rates are low and often remain fixed, they likely offer FREE balance transfers, no annual fees, and may even give customers cashback on purchases.
With larger credit card companies rewards may feel great, and these cards do work for some people, but others get trapped into carrying a large balance with a rising interest rate. It turns out that the rewards card may not have been the best financial decision in the long run, and your customers will end up being worse off than they started.
Make sure you position your card options not just for short-term gains, but for longer-term financial wellness.
One of the best ways to positively impact that your institution's credit card adoption with your customers is to run campaigns during the most 'frivolous' times of the year. Consider special rate promotions during the following seasonal times of the year:
Back To School
This is when consumers are the most vulnerable to larger financial institutions and more likely to "take the cheese" when shopping.
Many people fall into the trap of opening a card to save money while shopping, but they don't see the big picture of how much they will pay back if they do not pay off the entire balance immediately. Educate them on the smart way of spending and using your lower-rate cards, and in the long run, they will see the biggest reward of all... not having a card with a high rate, ridiculous annual fees, and a looming balance that they can't manage!
If you're honest and transparent with customers they will make yours their primary credit card and will end up trusting your FI as their one-stop shop for all their banking needs!
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