Smith added the credit union makes the loans available from Oct. 1 to Jan. 31 to allow members to move their higher-rate credit card balances to the lower-rate loan, even if the higher-rate card is a WGLFCU product.

She explained while the cooperative currently pulls credit reports when underwriting the loans, it may not continue doing so.

"I have been thinking these loans are so popular with some of our strongest members that if they have had other loans with us or have been our member for a long time, we may not pull the credit report in the future," she said.

The holiday loan program has produced about $500,000 in new loan volume annually for the cooperative, Smith reported.

Many executives said while these loans don't necessarily bring in a great deal of money for their credit unions, they remain overwhelmingly popular among core members.

Brian Jester, marketing specialist for the 15,000-member, $411 million Lafayette FCU, reported 96% of his holiday loan borrowers had checking accounts and 75% also had direct deposit.

Jester reported the Kensington, Md.-based cooperative will offer the loans at APRs between 1.99% and 2.49% beginning Nov. 15. Members can borrow up to $5,000 for 36 months, he said.

"Our strongest members really love this product," he said. "When this time of year rolls around, they start calling and asking us if we are going to offer the holiday loans this year."

The $5,000 maximum means the loans can be used for more than just holiday expenses, Jester said.

The 41,000-member, $367 million Air Force FCU structured its holiday loan in three tiers, allowing members to borrow $500 or more and repay it in 12, 24 or 36 months, according to Danny Sanchez, vice president of marketing. The APR for the three terms is 4.99%, 5.99% and 6.99%, respectively, Sanchez said.

Holiday loans can be used for travel and gifts, as well as other end-of-year expenses that members of the San Antonio, Texas-based credit union are not prepared for, Sanchez said.

One credit union launched a one-day loan sale to engage members and help put the cooperative in the spotlight.

The 7,500-member, $80 million NuVista FCU will offer members its low-rate holiday loan for a few hours on a Saturday morning.

Qualified members who apply between 8 a.m. and 10 a.m. on Nov. 21 will receive a 1.99% APR; qualified members who apply between 10 a.m. and 12 noon will receive a 2.99% APR, 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 can apply online or over the phone, bring their applications to either one of the cooperative's two branches or email the credit union.

"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," she said.

Rosty said the cooperative will simplify underwriting and offer the loan 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 boost the credit union's profile.

"We've been getting a lot of feedback about it and we have a live radio feed on Saturday to provide coverage," she said.

This will be the promotion's second year, Rosty explained.

NuVista made 70 of the loans last year and Rosty said it hopes to more than double that volume this year.

The chief lending officer for the $3.5 billion, 178,000-member Visions FCU reported it also discovered the value of limiting holiday loans' availability time, as it excites members and enhances the loans' appeal.

"We always offer the holiday loans, but each year we try to change them up and do something a little different," Tracey Wheeler said.

Last year, Wheeler said, the Endwell, N.Y.-based cooperative tied its holiday loans into Cyber Monday – the Monday after Thanksgiving when online retailers offer major holiday discounts. Members had from Cyber Monday to the next Saturday – just six days – to apply for the loans, and had until Dec. 31 to close them.

The credit union also offered holiday discounts on two other loans – it promoted its signature loan at an APR of 5.25% for 60 months and its auto loan at an APR of 1.99% for 60 months. Wheeler reported by placing restrictions on the loans, member demand skyrocketed.

"We had an extraordinary response," Wheeler said, reporting the credit union originated $8 million from the promotion, with $6 million coming from auto loans.

"We're still not entirely sure what happened," Wheeler said. "Whether we just hit the auto loans at the right time or we tapped a reserve of demand, we decided to try to do it again this year."

Wheeler said Visions FCU will offer similar promotions this year, except signature loan rates will drop to 4.99% APR for 60 months and auto loan rates will increase to 2.25% for 60 months.