DES MOINES, Iowa–Saying they were seeking to achieve greater financial inclusion and more effectively reach diversified consumer segments, four community financial institution partners of TMG Financial Services (TMGFS) have expanded their credit card programs to include the agent-issuer’s new Secured MasterCard. Bank of Nebraska, Greater Nevada Credit Union, St. Cloud Federal Credit Union and Mill City Credit Union have each joined with TMGFS to begin accepting Secured MasterCard applications.
The secured-card product was introduced by TMGFS in February 2015 and is helping several of the agent-issuer’s partners, including Community 1st Credit Union, say “yes” to more consumers, according to TMGFS.
“Turning down credit card applications stands in the way of what may otherwise become long-term and mutually beneficial relationships with new members,” said Marian Holmes, VP-consumer lending and government affairs with Community 1st Credit Union.
The goal of a secured-card program is to help the cardmember build or rebuild his credit, and eventually, work his way into a traditional credit card, perhaps even a car loan or a home mortgage, TMGFS said. Community 1st’s secured cardmembers can earn their way into a traditional card in as little as 12 to 18 months – shorter for members who make special requests for review and demonstrate an excellent repayment history and improved credit picture.
“Millions of consumers are denied credit cards each year, yet for community financial institutions and their customers, the sting of ‘no’ is felt more deeply,” said Corey Skadburg, TMGFS’ senior credit & risk manager. “A secured credit card is just one way credit unions and community banks can approve more consumers. Not only does this avoid the discomfort of ‘no,’ it helps the financial institution earn revenue, grow its member base and most importantly, live out its mission.”
The card, which comes with a low annual fee, works by allowing the cardmember to secure funds with his own cash deposit. That cash deposit becomes the credit line for the account.
For info: www.tmgfinancialservices.com.