Cards with purpose: How nonprofit credit unions craft card programs for community and member empowerment
In the vast offerings of financial institutions, nonprofit credit unions stand out for their unwavering commitment to community-centric values. Crafting card programs designed to mutually benefit members and the broader community, credit unions are not merely transactional entities but vital partners for empowerment and development.
Distinguished by a philosophy that prioritizes members, credit unions create card programs that encapsulate the essence of support and relief. These programs often feature lower interest rates, minimized fees, and terms crafted with a deep understanding of the members' financial needs, providing a safety net that enhances financial health and accessibility for all.
KCT's Visa Classic and Platinum Credit Cards exemplify this, offering fixed rates for purchases and cash advances, no cash advance or annual fees, and a 10-day grace period for late fees. Understanding that unexpected events occur, these cards do not impose penalty rates for late payments, as we believe it's unfair to penalize cardholders under such circumstances.
The community support initiatives embedded in credit union card programs are impactful. Affinity and co-branded cards, for example, serve as conduits for funneling funds directly to invaluable community assets like schools, nonprofits, and various community organizations, thereby linking member transaction to the welfare and development of their community.
At KCT Credit Union, our commitment to community enrichment is deeply embedded in our diverse card programs. Our Affinity Co-branded card programs are more than just a payment tool — they're a badge of honor for supporters of education. Every transaction made using these cards allows KCT to donate a portion of the transaction to school district and college foundations. Not only do cardholders enjoy secure, convenient, and touch-free payments through contactless technology, but they also contribute to fostering a bright future for students. In 2022, KCT members helped raise more than $53,000 for our affinity partners.
KCT's Purchasing Card program allows our community and corporate partners to earn up to 1.5% cashback on purchases made. Our Purchasing Card program provides our partners with access to Visa Spend Clarity to manage their card program with access to reporting, payment controls, and alerts. In 2022, KCT provided our Purchasing Card partners with more than $71,000.
Secured Credit Cards offered by credit unions present an array of benefits for individuals navigating the path of financial responsibility and credit-building. Primarily designed for those with limited or damaged credit history, these cards require a refundable security deposit, minimizing the risk for the credit union while providing cardholders with a credit limit often equivalent to the deposited amount. The credit unions report the payment activities to major credit bureaus, assisting members in building or repairing their credit over time. Moreover, credit unions typically offer lower interest rates and fewer fees compared to for-profit institutions, making their Secured Credit Cards a cost-effective choice.
KCT's Secured Credit Cards provides members with fixed-rate interest rates at the same rate for purchases and cash advances. Fixed-rate interest rates on credit cards provide stability and peace of mind in a fluctuating rate environment.
Rewards credit cards offered by credit unions provide members with an enticing opportunity to earn valuable perks while making everyday purchases. These cards typically feature competitive rewards rates, including cash back, points, or miles, that can be redeemed for various incentives such as travel, merchandise, gift cards, or even statement credits. The appeal of credit union rewards cards is further heightened by their often-lower interest rates and fewer fees compared to those issued by traditional banks.
KCT's Visa Signature Cashback card allows cardholders to earn 1.5% cash back on purchases with no need to track or manage categories, and it carries no annual fee. Cash back earnings are automatically posted to savings accounts each month, available for use as statement credits or for transfer to checking accounts. The Visa Signature Cashback card also provides access to travel offers and premium benefits, with members earning more than $113,000 in cash back in 2022.
Nonprofit credit unions offer more than just financial products through their meticulously crafted card programs. They embody a vision of service, support, and empowerment that benefits individual members and reverberates through the community. Engaging in the delicate balancing act of providing member benefits while fostering community development, these institutions stand as pillars of financial wellness and social responsibility. Members gain access to invaluable resources, tools, and support networks, facilitating not only personal financial growth but also thriving communities.
For more information about KCT Credit Union and complete details and benefits of our card programs, visit kctcu.org