Municipal Credit Union Grows Credit Card Use with Increased Limits

Municipal Credit Union is one of the country's oldest credit unions, chartered by the mayor of New York City in 1916. Today, nearly a century later, it has grown to 320,000 members and $1.6 billion in assets. In 2010, Municipal wanted to grow and more aggressively market its credit card portfolio, and turned to Advisors Plus for guidance.

Advisors Plus designed a campaign to raise member credit card limits to levels that would build loyalty and yield renewed interest in using the Municipal cards. Advisors Plus analyzed a variety of cardholder information using its proprietary analytics to determine who would receive an increased credit limit, and how much the increase would be.

Over 2,500 cardholders received the promotion, and their spending levels were rigorously measured against a control group. One year later, cardholders with the increased limits showed purchase activity that was 15% higher than the year before, versus an increase for the control group of only 2%.