ST. LOUIS — Data is steadily rolling in that demonstrates credit unions with flat or underperforming credit card portfolios can breathe more life into their card programs with the addition of a little Platinum.

The latest example comes from the $175 million Neighbors Credit Union, headquartered in St. Louis, which reported boosting the outstanding balances of its roughly 6,000 card credit card portfolio by converting most of its Classic and Gold Visa branded cards to a Platinum card program and by implementing a rewards program, according to PSCU Financial Services, the card processing CUSO which helped the CU make the switch and offered the rewards program.

The CU began offering the rewards option after implementing risk-based pricing, which allowed it to offer its most reliable cardholders interest rates as low as 7.95%, PSCU said.

“While we have witnessed the trend for credit unions to sell their credit portfolios, we believe that credit cards are a fundamental building block in attracting and retaining members,” said Larry Giesing, CEO of Neighbors Credit Union. “Our experience validates what PSCU Financial Services has been saying for years: adding a popular rewards program and offering employee incentives does generate immediate and significant returns for a credit card portfolio.”

Employee promotions have added 149 new cardholders and $60,500 in balance transfers to the portfolio in the first quarter of 2007, PSCU added.