Beal's shop has coined a new term to describe the market: IMM, an acronym for ineffective money manager.

"It's not just low-income we're talking about here," Beal said. "We've found many are high wage earners, but just don't manage money well."

For instance, users of NFCU's AdvancPay payday loan product earn between $40,000 and $49,000 annually, and 90% own a home. However, two-thirds have credit scores below 600.

Most credit union professionals keep a close eye on their personal finances, so it's hard to get inside the heads of those who don't do the same, Beal said. However, according to economic research firm Moebs Services, only 13% of consumers balance their checkbooks. And, ChexSystems has a list 8 million Americans deep who are unable to open traditional accounts, and Beal said he suspects the actual number is much larger.

Like it or not, the IMM market is large enough, particularly in cities like Las Vegas, to make the payoff worth the risk. The risk can be properly managed, Beal said, and the popularity and success of Courtesy Pay is evidence of that.

"You may be thinking, 'this is one heck of a time to be talking about programs like this,' but we're not talking about giving mortgages to these people," he said. "These are manageable dollar amounts."

NFCU offers a full suite of products for its IMM market, including AdvancPay and a companion Break the Cycle loan, Specialty Auto Finance, New Start Checking and Courtesy Pay, which it considers an IMM product. The credit union is also currently piloting a New Start VISA credit card program.

One of the ways NFCU counters risk is to collect fees up front. The credit union charges significant application fees for AdvancPay ($40 with direct deposit, $50 without) and New Start VISA ($49.95).

Tom Ernsperger, senior vice president of lending, said NFCU obtained legal guidance in structuring the program, which included questions about limits on application fees per Regulation Z. Lawyers determined that Reg Z exempts an application fee from consideration as a finance charge if the fee is charged to all applicants, regardless of whether credit is actually extended.

"This way, we can keep finance charges within 18% and still make it worthwhile for the credit union," Ernsperger said. Only 3% to 4% of applications are denied each month.

Now in the program's fourth year, NFCU grants nearly 1,000 AdvancPay transactions each month to members with an average credit score of 571. In 2007, the credit union earned $378,000 in fee income, which offset $30,000 in losses associated with the product. Maximum loan amount is $500, and terms are up to two weeks.

Nonprime auto loans are also big business at NFCU, which operates four credit programs to cover a range of credit issues, from bad credit to no credit.

"Over the last year, we've interviewed subprime professionals, been to subprime seminars, met with two separate subprime consultants, and recently hired someone to oversee this program who used to work as a subprime auto lender," Ernsperger said.

Though the credit union sought advice from the subprime industry, he cautioned that credit unions should remain in control of individual loan decisions and should always remain in charge of policies, procedures and underwriting when it comes to high-risk auto lending.

In 2007, NSF programs accounting for more than $4 million in net revenue once charge offs and NFCU's generous refunds were subtracted from gross income. So many members take advantage of Courtesy Pay, the board recently approved up to $750,000 in negative share balances. As of the presentation, NFCU's negative shares sat at $418,000.

"Just a few years ago, if we would have been over $100,000, we would have been scared, but now we just monitor it closely," said Pete Jenkins, senior vice president of administrative services.

NFCU pre-establishes negative limits for Courtesy Pay customers, ranging from a couple hundred dollars to $2,000. Limits are adjusted according to member behavior, and also seasonally; for example, during summer vacations and the Christmas holiday season, availability might be reduced.

"We're always looking for that tipping point where it's no longer worth it for the credit union," Jenkins said, adding that nearly all the time, negative balances return to black with the next direct deposit.

Beal said his IMM programs probably perform better than average because of his unique field of membership, but nationwide statistics show potential most everywhere.

"Remember, there's a big difference between financial education and financial discipline," Beal said, "and many people can't, or won't, apply financial discipline. My sense is that we've only scratched the surface.

"I'd say 20,000 new members in the next few years is not unreasonable. If you look at the credit statistics, 600,000 residents of Clark County have credit scores below 649, and they have to go somewhere."

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