(December 10, 2012) – A quickly conceived and executed lending program to help Tropical Financial Credit Union members during the holiday season more than doubled its goal in one week.
“We were aiming for 200 loans, but booked 532,” said Amy McGraw, vice president of marketing. “Everyone was extremely satisfied with the results and surprised as to why many people decided the loan was right for them.”
In October, the marketing, lending and retail services team got together and created the “No Credit Check” loan program, nicknamed the “Black Friday” loan, to help credit-challenged members get money to buy holiday presents. Tropical Financial offered a $1000 loan for 12 months, at 16.99 percent, with no fees, and no payment until January 2013. To qualify, the applicant would have to be a member for at least six months, have payments automatically deducted from a credit union checking account, and have good credit with Tropical Financial.
The marketing department conducted a small promotion – about 12,000 postcards sent on Nov. 15 and email blasts on Nov. 16 and Nov. 20. Within minutes of the first emails being delivered, the call center started receiving inquiries, McGraw said.
“We were surprised that many members who held lower-rate credit cards or qualified for a lower-rate loan decided to apply,” McGraw said. “They said that they liked the idea of having a set amount of cash to shop with, without the temptation of using a credit card. They also liked the idea that that the payments were going to a very specific purpose: their holiday presents.”
The loans put $532,000 on the credit union’s books and could generate net income of more than $45,000 next year, McGraw said. Tropical Financial has assets of $555 million.
“Just as important, we are helping members build up their credit rating,” she said. “With a monthly payment of $92, the loan is affordable and short enough that it doesn’t hang over them. This fits our mission of people helping people.”
McGraw note that because of the success of this program, the credit union is considering offering similar loans for other shopping occasions such as back-to-school shopping.
About Tropical Financial Credit Union
Tropical Financial Credit Union is a tax-exempt financial institution whose deposits are federally insured. The $555 million institution serves South Florida with 11 branches. People who live or work in South Florida’s three counties can join the credit union, which was founded in 1935. For more information on Tropical Financial, visit www.tropicalfcu.org.