MICHIGAN CITY, Ind.–Credit unions across the country this week have both jumped on the Black Friday shopping cart with special offers of their own, while also warning members about the risks from decisions that can turn into financial turkeys during one of the busiest shopping periods of the year from Black Friday to Cyber Monday.
Although lending rates aren’t nearly as festive as they were just a year ago, credit unions are promoting loan specials and dangling incentives to get members to use their cards (or transfer balances) this holiday seasons.
But first, this gift from CUToday.info: some trivia on the history of Black Friday:
- The term "Black Friday" was first coined in 1869, but it had nothing to do with shopping. Instead, two investors, Jay Gould, and Jim Fisk, caused a market crash by driving up the price of gold. As a result, the stock market dropped 20%, foreign trade stopped, and farmers witnessed a huge drop in corn and wheat value.
- In Philadelphia during the late 1950s and early 1960s, the term was resurrected and used to refer to the day between Thanksgiving and the Army-Navy game when the event would summon large crowds of tourists and shoppers, requiring extra hours put in by law enforcement to moderate the traffic and by retail workers, who had longer shifts as stores remained open later.
- In the 1980s that the term became synonymous with shopping when retailers reinvented the "Black Friday" name to reflect the backstory of how accountants used different color ink — red for negative earnings, and black for positive earnings — to denote a company's profitability. Black Friday became the day when stores finally turned a profit.
With that knowledge now unwrapped, a look at some of what credit unions are doing this year:
Multiple Offers in Michigan City
In Michigan City, Ind., Members Advantage CU is offering what it is calling “Amazing Deals” from Nov. 15 through Dec. 31. Among the offers:
- A 0% APR on its gold card for six months for all purchases made during the promotional period
- A 4.99% APR on card balance transfers
- An 8.99% APR on its Signature Holiday Loans on amounts up to $2,000
- 50 basis points off its standard auto loan rate
- A 2.99% rate on a home equity line of credit (plus a drawing for a $50 gift card)
- $5 for switching to e-statement
- And as part of its 12 Days of Giving promotion, the opportunity to have the CU pay a member’s last debit card transaction, up to $50
Yes, Virginia, There is a Deal from HRECU
In Virginia, Hampton Roads Educators Credit Union is offering a loan special that ran for three days this week.
HRECU was offering a 3.79% APR auto loan, a 3.54% rate on auto loan refinancings, personal loans from 10%, and a Visa Platinum Rewards card with an ARP of 6.9%. It was also offering a savings-secured loan beginning at 3%.
St. Nick in St. Joseph’s
In St. Joseph’s, Mo., Goetz Credit Union is offering a “Pre-Black Friday” loan special that offered a 12-month term at 6%.
You Do the Talking
Under the headline, “Don’t Speak to Black Friday, Let Black Friday Speak to You,” Kara Yaquinta wrote on a blog posted by Tropical Financial Credit Union, “How many times have you gone into Black Friday with the intent of purchasing certain items, but because we live in South Florida the long lines say otherwise. This year, it’s time to leave the thermos at home, keep the lawn chair in the car and not worry about staking out your spot in line…Instead of going into Black Friday with a list of specific items you’re going to buy, don’t set expectations.”
The blog offers this advice:
- There’s nothing wrong with going just to browse
- Go where there’s no line
- Follow the signs (to the sales)
- Listen to the salespeople
Loan Sale at SRP
SRP FCU is urging members to “gear up to take advantage of all the Black Friday and Cyber-Monday sales” with its “personal loan flash sale!” The credit union has lowered its personal loan rates to as low as 6.99%.
“So, whether you’re out shopping with the Black Friday crowds or online shopping from home, get everyone on your list what they’re wanting without breaking the bank.”
Black Friday Shopping Center
On its website, Hope Credit Union in Mississippi is offering a Black Friday Shopping Center.
“Have you begun crossing items off your holiday wish list? Whether you’re looking to purchase clothing, technology, home goods, electronics, or toys, there’s likely a Black Friday deal for that,” its website reads. “While the holiday shopping scene has changed this year as retailers adjust to circumstances surrounding the pandemic, Black Friday sales are still on!”
This year many stores have been rolling out select deals both online and in-store throughout the month of November to avoid the influx of customers on Black Friday alone. During this week and the next, the deals are getting even hotter leading up to Thanksgiving and Black Friday!
“HOPE is all about helping you to save money, so we have the scoop on Black Friday deals from some of the major players in Black Friday this year. Our Black Friday Shopping Center shows you current and upcoming sales from Amazon, Home Depot, Best Buy, Target, Walmart, Bed Bath & Beyond.”
The site then lists those retailers and some of the specials they are offering.
‘Holly, Jolly Loans’
In Franklin, Tenn., Southeast Financial Credit Union is offering “Holly Jolly Holiday Loans.”
“Between shopping for gifts and entertaining, holiday expenses can add up fast and really blow your budget. We want to help you make sure you have the cash to check off everything on your list,” the credit union said. “During our Holly Jolly Holiday Loan promotion, borrow up to $5,000 at a low, 5% APR and pay it back in 12 monthly payments.
“Whether you need $500, $5,000, or anything in between, put some extra jingle in your pocket this season without breaking the bank. Call us to apply on Black Friday or Cyber Monday or apply online all weekend long.”
In addition, Southeast Financial CU is also offering double points on all purchases made on its Visa Platinum and Visa Signature card through its CURewards program.
10 Tips Shared
On its website, Deere Employees CU in Moline, Ill., has a blog posting titled, “10 Tips to Win on Black Friday-Cyber Money.” Those 10 tips include:
- Sign up for emails
- Do your homework
- Prioritize your shopping list
- Get social
- Shop with a friend
- Create a budget—and stick to it
- Price check in the store
- Check the cost of shipping for purchases or returns
- Don’t even try to price match
- Shop on Wednesday
- Bonus tip – stay safe from hackers while you shop
Special Black Friday Loan
In Connecticut, Franklin Trust FCU is offering a Black Friday & Cyber Monday loan for amounts from $500 to $2,500 with a term out to 12 months. The promotional offer ends Nov. 30.
Be Careful, CU Cautions
Stark FCU in Canton, Ohio is cautioning its members to be careful over “Misleading advertising this Black Friday.”
“Here at Stark FCU, we hate to see your money go to waste, so we’ve put together a list of misleading advertising schemes you may come across when hunting for deals this Black Friday. Be an informed consumer and shop smartly,” the credit union advises.
Stark FCU is cautioning members to be wary of:
- Very limited quantities
- No discount
- Full price with a store gift card
- Sales based on a dishonest manufacturer’s price
- Stripped-down or downgraded versions
“You deserve to find fantastic deals this Black Friday. Look out for these deceptive advertising techniques so that you only walk away with actual bargains,” the credit union said.
Watch Out For Trojan Horse Deals (But Get This Trojan Card)
In Los Angeles, USC Credit Union, which serves the University of Southern California, is offering both a special card deal and advice to members on shopping carefully.
USC CU is offering a 0% APR on its credit card on all purchases made this Black Friday weekend whether online or instore for six months.
Separately, it is advising members to avoid the “rookie mistake” of most Black Friday shoppers by “entering the battlefield without a strategy.”
Saying it is offering the “intel so you can get the most bang for your buck,” it is advising members to:
- Start researching early
- Know what to buy
- Check return policies
- Save receipts
- Prepare your rewards cards