MIRAMAR, Fla.-Tropical Financial Credit Union here is reporting it closed more than 500 loans as part of a new "No Credit Card" loan it had nicknamed the "Black Friday Loan."
The product was created to help credit-challenged members get money to buy holiday presents, and offered a $1,000 loan for 12 months, at 16.99% with no fees and no payment until January.
To qualify, the applicant would have to be a member for at least six months, have payments automatically deducted from a credit union checking account, and have good credit with TFCU.
"We were aiming for 200 loans, but booked 532," said VP-Marketiong Amy McGraw.
Promotion was relatively limited, consisting primarily of about 12,000 postcards sent on Nov. 15 and e-mail blasts on Nov. 16 and Nov. 20. Within minutes of the first emails being delivered, the call center started receiving inquiries, McGraw said.
"We were surprised that many members who held lower-rate credit cards or qualified for a lower-rate loan decided to apply," McGraw said.
The $555-million Tropical Financial reported loans totaled $532,000 and that it is projecting net income of more than $45,000 next year as a result.
