Cooperatives Partner with Financial Institution
More than 1,000 utility cooperatives will be able to offer their members/customers a platinum Visa credit card with a low interest rate due to a new partnership between the National Rural Utilities Cooperative Finance Corp. (CFC) and First USA. Combined, CFC member electric utilities generate power for approximately 14 percent of U.S. households.
Through the Co-op Power Plus program, cooperatives will offer their customers a platinum Visa credit card featuring an introductory 3.9 percent APR for five months and a 9.99 percent APR thereafter, one of the lowest rates among credit cards in the United States. A comprehensive marketing package, including promotional information, is being made available to cooperatives to inform their customers of the new program.
“This program allows cooperatives to enhance their relationship with residential customers by providing a value-added product that consumers want,” said Joel Allen, CFC program director. “It also gives cooperatives an additional revenue stream that does not have any financial risk.”
CFC is a not-for-profit cooperative with membership that consists of electric cooperative distribution systems, power-supply systems, statewide associations and service organizations. CFC provides private-market financing and related financial services to its more than 1,000 cooperative utility owners across the United States.
“First USA is excited to be entering the utility industry through a partnership with CFC,” said James Stewart III, First USA executive vice president, partnership marketing. “This relationship allows us to tailor an outstanding consumer value to millions of power customers who are also the cooperatives` owners.”