Credit union loan zone: Set-in-stone credit limits are so 2015

A case study of University of Iowa Community Credit Union's successful line increase campaigns

Every credit card portfolio in the movement will be tested this year. Intense competition for cardholder business, changing consumer preferences and on-the-move interest rates are just a few of the trends already presenting cards teams with tough challenges, yet also unprecedented opportunity.

To position themselves for success in the evolving world of credit card issuance, savvy credit unions are looking more closely at cardholder data. Coupled with skillful analytics, data from a variety of internal and external sources allows cards managers to make quick decisions with confidence. The result is an intuitive program, one that adjusts to offer customized features, benefits and perks—often before members even know they want them.

Take credit lines, for example. Cardholders rarely consider asking their issuer to change what many of them perceive to be set-in-stone limits. Yet, when presented with even a modestly increased credit line, cardholder appreciation for the benefit becomes apparent.

This is particularly true among credit union cardholders. That’s because cooperatives are very often on the extreme end of conservatism when it comes to extending credit. Not only does this conservatism leave worthy borrowers completely off the credit union radar; it opens the door for aggressive competitors and financial technology lenders  to begin courting a credit union’s members.

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