3 Common Pitfalls of Credit Card Management
Despite widespread recognition of their importance to an overall loan portfolio, credit card portfolios remain far too mysterious to far too many credit unions, say consultants who work with credit unions on credit card management.
Too few credit unions have a grasp on such basic concepts as what makes their card portfolio profitable, how to adequately but not excessively account for risk, how to plan for and set credit lines, and how to best understand and plan for fraud losses, these cards experts say.
Risk is Real and Manageable
The second mistake that credit unions often make in managing their credit card programs is to misunderstand and inadequately measure risk, the consultants said.
Know Thy Cardholders
The last too-often-overlooked area in credit card management has to do with understanding and using card data and marketing.