9 ways to increase credit card income without cranking up rates

Everyone loves a warm, sunny day, but there is a threshold for tolerance before it becomes too hot to handle. As the summer sun cranks up the heat, people seek ways to escape the extreme temperature. People also love the convenience of credit cards and are willing to pay interest to buy now, but they too have a limit on how high you can crank those interest rates up on your card products before they run for alternatives.

In-house credit cards are considered a great way to deliver value and build loyalty among members. They appreciate the convenience of having their card managed by the same institution they trust for their banking needs. Credit cards are also commonly used to cross-sell your products. But mostly, credit cards are awesome at generating revenue for your CU and hiking up interest rates too high can turn your members away. Here are some additional ways to increase credit card income without dialing up the interest rates:

1. Late fee – This is standard practice for most credit-granting institutions and where a large piece of credit card revenue comes from. If the member doesn’t pay the minimum on time, they have to pay a fee. This helps encourage on-time payments as well, which is better for your balance sheet.

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