GOSHEN, Ind.—Credit unions will be hopping aboard the Black Friday shopping rush later this week, joining retailers with deals that include 0.99% APR auto loans, double rewards points, and 5% APY checking.
Some of the deals begin as early as today and even last through Dec. 5, encompassing Black Wednesday and Cyber Monday along the way.
Credit unions that have opened their doors to the holiday promos see increasing value in the marketing, which they say achieves several important results—from raising brand awareness to boosting loan dollars to adding new members.
And one credit union believes the special offers can have a lasting value beyond just a few days and can open doors to deeper relationships.
“I think what the holiday shopping promotions do with members and non-members is to help them see the credit union in a different perspective,” said Karen Steffensen, marketing VP at Interra CU. “I know credit unions are in the retail space, but I don’t think consumers always see us that way. I think offering these deals gets consumers to look at us in a new way, which naturally opens the door to conversations, cross sales, and more.”
Doorbusters
Interra is offering two Black Friday “doorbusters”—a 5% APY checking account rate and the chance to have the CU deposit $100 into a Christmas club account. Both offers are for new account openings and consumers must first sign up online to be eligible. The first 20 people who ask for the checking account at a branch Friday receive the promotion, and the first 15 opening a new Christmas club get the cash.
The 5% checking rate is paid on the first $10,000 on deposit, which must be new money, and lasts for 12 months.
Interra is offering different deals on Cyber Monday, and will have new offers running through Dec. 5. The credit union is advertising in the local newspaper, buying the wrapper that holds all of the holiday ads the newspaper distributes on Thanksgiving.
In Erie, Penn., Erie Community CU isn’t waiting for Black Friday, delivering an offer that should have consumers lining up early on Black Wednesday.
“The credit union will open early at 7 a.m., with auto and signature loan rates starting at 0.99% APR.,” said Marketing and Business Development Director Pamela Palotas. “Here’s the twist—you have to get here early, as rates increase 0.25% every 20 minutes (and eventually stop at a rate still below the CU’s standard rates). We’ll then offer those special rates for the rest of the day.”
Among a host of adverting approaches ECCU is using, the credit union has been handing out cookies with “.99” written in icing.
No Reason To Wait
Another credit union that’s not waiting until Black Friday is UFirst Federal Credit Union in Plattsburgh, N.Y.
But the credit union is not getting out ahead of Black Friday deals as much as it is avoiding the Nov. 27 clutter and giving members money to spend on Friday.
“We thought that if we ran a promotion on Wednesday, members would have the ability to borrow cash to spend on Black Friday,” said Marketing Specialist Meghan McGee-Pelkey, who noted that staff have been wearing “beat the clock” ribbons to promote the early holiday offer. “It’s the perfect time to reach our members and help them get some extra holiday cash or a special rate on an auto loan.”
UFirst’s standard auto loan rate is as low as 1.99% APR, and the special rate is as low as 0.99%. The CU’s normal signature loan rate is as low as 8.75%, and the special rate is as low as 6.75%.
“We thought Black Friday would be difficult to manage, knowing that people will be lined up at local stores trying to get deals on TVs, game systems, etc.,” McGee-Pelkey said. “We would be their last thought.”
All this week Michigan Community Credit Union, Jackson, Mich., is giving members double credit card points on purchases.
“We want to increase usage of our cards, and what better time to do it?” observed Marketing Manager Liz Hoffius. “We have never done this before, so we are excited to see the results and engagement levels with this.”
In Miramar, Fla., Tropical Financial CU is offering a no-credit-check loan. To be eligible, members must be in good standing for at least six months, have proof of income and a checking account set up with autopay.
“It’s a $1,000 loan paid back beginning in January for 12 months at approximately $92 a month,” explained Vice President of Marketing Amy McGraw. “We have been doing this for three years now and it’s been pretty successful. The first year we gave members two weeks to take the offer and we had around 500 who took it. Last year we offered it only one week and we had 1,000 take the offer. Now this year we’re offering it for three days—Nov. 16, 17, 18—so members can get the money in their accounts in time for Black Friday.”
Holiday Loan
Starting on Black Friday and running through December 12, Heartland Credit Union in Inver Grove Heights, Minn., is offering a Holiday Loan—as low as 5.9% APR on $500 - $3,000 for a one-year term.
“We are also giving away a $50 prize each day in a drawing during the promotional period to members who use our debit card,” said Marketing Director Alyssa Karl. “The more you use your card, the more entries you get, the better your chance to win. Members can also receive $100 cash back for moving an auto loan over to us.”
Erie Community’s Palotas summed up what her CU believes the holiday deals do for credit unions.
“This is the fourth year we have held this loan special,” said Palotas. “The first year we needed to increase loan volume. But we continued to hold the event because it is such a hit with our members. It has become our signature event that people start inquiring about in mid-October. It has become more about brand awareness and recognition within the community than loan growth.”