The 7,500-member, $80 million NuVista Federal Credit Union announced it will launch a one-day loan sale to raise the profile of its holiday loan program.
Qualified members who apply for the loan between 8 a.m. and 10 a.m. on Nov. 21 will receive an APR of 1.99%; qualified members who apply between 10 a.m. and 12 noon will receive an APR of 2.99%, NuVista Vice President of Marketing and Community Relations Chelsea Rosty explained.
Members can borrow up to $5,000 and will have up to 18 months to repay the loan, she said, adding that they can also refinance existing credit union debt as long as they add at least $1,000 to the balance.
“We timed it for about a week before Black Friday,” Rosty said, referring to the nationwide Nov. 27 event in which retailers sharply discount prices for holiday shoppers. “I think a credit union in Montana did it, but we really got the idea from retailers and their flash sales and one-day event sales.”
Members will be able to apply online or over the phone, bring their applications to either one of the cooperative's two branches or email the credit union, Rosty explained, adding that timing will be critical.
“They will have to be time-stamped during those times,” she said. “If they apply online, they will have to do it between those hours. They can't apply early.”
Rosty said the cooperative will simplify the loans' underwriting and offer them to members with fairly low credit scores. However, she added members with very low scores may face caps on the amounts they can borrow.
She also explained the Montrose, Colo.-based credit union chose the one-day loan sale to drive excitement among members and boost the credit union's profile.
“We've been getting a lot of feedback about it and we have a live radio feed in on Saturday to provide coverage,” she said.
This will be the second year the credit union holds the sale, Rosty explained. The cooperative made 70 of the loans last year and said it hopes to more than double that volume this year.
Read more about credit union holiday loan programs in the Nov. 11, 2015 print issue of Credit Union Times.
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