MSUFCU Issues $1 Mil. Challenge
Credit unions regularly tout the fact that they offer a better deal, so Michigan State University Federal Credit Union is working to prove that with a $1 million challenge.
Members who transfer a higher rate loan or credit card balance to MSUFCU until March 31 will have a chance to win $500. Three names will be drawn and each will receive the equivalent of their savings up to $500. If they save $350 over the life of their loan they receive $350. If they save $1,000 they collect $500. The credit union hopes to collectively trim its members' total loan interest by $1 million.
The challenge started Jan. 5 and seems to be off to a strong start. When a member transfers a loan, staff can enter the transfer and savings on an intranet site. By the middle of the month data showed members had saved $48,642.
"We've seen all sorts of loans-auto loans, motorcycles and RVs, credit cards, signature loans," Clobes noted. "We did not put mortgages in the mix because we'd have to do a refinance, and it's difficult for a lot of people to refinance because they may be upside-down. We've seen significant declines in home values in Michigan."