Credit unions pursue new member markets with TMG Financial Services’ Secured Credit Card
DES MOINES, IA (January 13, 2016) — 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 each worked 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 Marian Holmes, Community 1st Credit Union’s vice president of consumer lending and government affairs, the Secured MasterCard has helped her team offer deserving members an alternative. “Turning down credit card applications stands in the way of what may otherwise become long-term and mutually beneficial relationships with new members.”
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. 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 customer 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. If a cardmember is able to put $500 into the account, for example, he can then charge up to $500 on his secured card.
About TMG Financial Services
TMG Financial Services (TMGFS) is known for providing collaborative, innovative and consumer-oriented solutions in the payments industry. With comprehensive credit card programs, products and services, TMGFS ensures financial institutions and member-based associations have the tools to thrive in the competitive financial services marketplace. TMGFS was named one of America’s fastest-growing companies by Inc. Magazine and currently has more than 127,500 credit cards and $198.8 million in assets under management. For more information, visit www.tmgfinancialservices.com.
