The SECU Rewards Card!
😎 A well thought out bungy plunge into more credit card debt for SECU members? Hope you will reread yesterday's post [link]. The hard financial truth is rewards cards do three things: 1) give members who regularly payoff their cards in full subsidized rewards benefits paid for by members who carry a balance, 2) purposefully seduce members who carry balances into paying much higher interest rates (usually @ 3+% more), and 3) confirms for members that SECU is no longer promising "we have your back" in the financial world. Buyer beware!
✅ Americans'
household debt levels, including credit card debt, rose to new all-time
highs in the fourth quarter of 2024, according to a report by the
Federal Reserve Bank of New York. [link - Consumesrs are ‘in trouble’ with ‘incredible loads’ of credit card debt, expert warns.]
😎 The"New/new" management's credit card credit score :
❋ SECU Credit Card Balances:
December, 2021 Credit Card balances: $880 million
December, 2024 Credit Card balances: $1.209 billion ➡➡ UP 37%! (Bravo!)
❋ SECU Credit Card Annual Charge-offs:
December, 2021 Credit Card Charge-offs: $9 million
December, 2024 Credit Card Charge-offs: $54 million ➡➡ UP 600% (OMG!)
✅ "Risk comes from not knowing what you are doing." - Warren Buffett
Whoops, wrong rewards! Can make it up on volume, perhaps?
How many A paper loans are in that 54 million? How many 50k unsecured loans?
ReplyDeleteIf the goal is bad decisions and losing other peoples money, looks like loan administration is winning.
New logo "people fleecing people"?
ReplyDeleteDamn! Does anyone in the Loan Dept know what they are doing!? Where is the CLO in all of this mess? Do the CEO and Board look at these numbers? If so do they care? What's being done to stop the bleeding?
ReplyDeleteOf course the CEO cares lol
DeleteProfit, Profit, Profit.....
ReplyDeleteonce they said this they let the horse out of the barn....
Freudian slip I'm afraid...
If this were truly what members wanted or needed, why not offer a rewards DEBIT card? Over a million members have one compared to 350k that have a credit card.
ReplyDeleteUsed to be a lot more common prior to the Durbin Act (Dodd-Frank). Write your legislator.
Delete