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Brazos Valley Schools Credit Union Moves
Top Cardholders to the Head of the Class
At Brazos Valley Schools Credit Union, credit
cardholders get tangible rewards when they earn an
A+. This type of innovative management and promotion
have enabled the credit union to grow from its
modest 1954 beginnings in Katy, Texas, to cover 13
counties.
Brazos Valley Schools Credit Union began as the
Tri-County Teachers Credit Union, changing its name
in 1976 to reflect its broadening field of
membership. Since opening that first branch 52 years
ago, Brazos Valley Schools Credit Union has grown to
seven branch offices, with two more planned in 2007.
With 38,287 members, the credit union has assets of
$320 million, 4,932 credit cardholders, and 11,820
debit cardholders.
In a little over a year, the longtime TNB Card
Services client has seen a dramatic increase in its
credit card program. From April 2005 to April 2006,
for instance, average retail sales grew by 18%,
nearly tripling the credit union’s traditional
annual growth rate. Average credit lines have grown
from $2,700 to $3,400, and outstanding balances have
climbed 11%, to $6.2 million. Barbie Jaloway, vice
president of administration for Brazos Valley
Schools Credit Union, says the newly introduced Cash
Rewards program and tiered pricing have powered the
recent portfolio growth.
“When we scored our cardholders’ accounts, we
found that in excess of 50% of our cardholders had
A+ credit ratings,” Jaloway said. “We also found
that we had a fair number of members with poor
credit, but who still pay their credit card in a
timely manner. “Our lower-scoring members were
paying the same rate as our A+ members, so we felt
that it was time to reward our higher-scoring
members by offering them better rates.” By scoring
the portfolio, Brazos Valley Schools Credit Union
has been able to offer more flexible rates.
Cardholders with high credit scores get the best
rates, of course. But while cardholders with lower
credit scores pay a slightly higher rate, at 15%,
that rate is still competitive with cards offered by
national issuers.
The credit union also gives other rewards to its
cardholders, such as a 1% cash rebate for Platinum
account holders, a skip-a-payment option, and an
annual automatic limit increase. This year, Brazos
Valley Schools Credit Union is working with TNB on a
card activation promotion to encourage inactive
cardholders to use their cards, as well as a new
MasterCard account acquisition promotion.
By continuing to offer enticing reward programs,
Brazos Valley Schools Credit Union hopes to drive
even more business expansion. “Our promotions have
been very well received by our cardholders, and we
intend to expand on our success and continue
providing a competitive and attractive card program
that will create loyalty among our members,”
Jaloway said.
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