Unlike traditional online loans (such as installment loans), with a Line of Credit offered through CreditFresh, you aren’t required to borrow the entire amount you are approved for all at once. Access the money as needed, so long as you have available credit, your account is in good standing, and you otherwise meet any criteria required to request a draw from your account.
With a Line of Credit from a Bank Lending Partner through CreditFresh, you can expect a fully transparent process.
Payment Breakdown
If you have an Outstanding Balance, you’ll have to make Minimum Payments. Each Minimum Payment includes:
Minimum Payments can be due on a bi-weekly, semi-monthly or monthly basis, depending on your income frequency. The exact amount of each Minimum Payment will vary depending on your account activity. You will receive a periodic statement for each Billing Cycle with details including the amount of your upcoming Minimum Payment, your Due Date and other account information.
Billing Cycle Charge
Each Minimum Payment includes a Billing Cycle Charge, which is calculated based on your Average Daily Principal Balance for each Billing Cycle. The Average Daily Principal Balance is determined by adding the daily principal balance for each day in the billing cycle and dividing that sum by the total number of days in that billing cycle. See below for an example of a Billing Cycle Charge table.
Mandatory Principal Contribution
A portion of each Minimum Payment goes towards your principal balance. The Mandatory Principal Contribution will vary depending on your income frequency. Refer to your Line of Credit Agreement, or any amendments, for more details.
Making Extra Payments
There are no penalties for making extra payments over and above your Minimum Payments. In fact, it will help reduce your principal balance and may also decrease the amount of Billing Cycle Charges you pay, subject to your individual account activity. You can make additional payments by logging into your online account or by contacting us during our operational hours.
Cost of Credit Example
To demonstrate what is included in each Minimum Payment, let’s look at the following examples for monthly and non-monthly income frequencies. We assume in these examples that there is an outstanding principal balance of $1,500 for three billing cycles.
Monthly Income Frequency (each Minimum Payment is about 30 days apart):
Billing Cycle Example
Average Daily Principal Balance
Mandatory Principal Contribution (A)
Billing Cycle Charge – Table 1 (B)
Minimum Payment Due (A+B)
Remaining Principal Balance
1
$1,500.00
$30.00
$184.00
$214.00
$1,470.00
2
$1,470.00
$29.40
$184.00
$213.40
$1,440.60
3
$1,440.60
$28.81
$184.00
$212.81
$1,411.79
Non-Monthly Income Frequency (each Minimum Payment is about 14 days apart):
Billing Cycle Example
Average Daily Principal Balance
Mandatory Principal Contribution (A)
Billing Cycle Charge – Table 1 (B)
Minimum Payment Due (A+B)
Remaining Principal Balance
1
$1,500.00
$15.00
$85.00
$100.00
$1,485.00
2
$1,485.00
$14.85
$85.00
$99.85
$1,470.15
3
$1,470.15
$14.70
$85.00
$99.70
$1,455.45
Note: These examples assume a draw is made at the start of a billing cycle, and that only Minimum Payments are made and no additional draws are requested on the Line of Credit. This example is for illustrative and informational purposes only. The actual Minimum Payment(s) due on your Line of Credit may vary based on individual circumstances and will depend on your individual account activity.
Billing Cycle Charge Table
Your Line of Credit Agreement including any amendments, which can be found in your online account, will indicate the specific Billing Cycle Charges applicable to your Line of Credit. See below for an example of a Billing Cycle Charge table. Note that Billing Cycle Charges may vary based on your individual qualifications*.
If the “Average Daily Principal Balance” appearing on your periodic statement is:
If you are paid weekly, bi-weekly or semi-monthly, your Billing Cycle Charge will be:
If you are paid monthly, your Billing Cycle Charge will be:
$0.01 – $10.00
$5.00
$10.00
$10.01 – $250.00
$15.00
$30.00
$250.01 – $500.00
$30.00
$60.00
$500.01 – $750.00
$38.00
$80.00
$750.01 – $1,000.00
$55.00
$119.00
$1,000.01 – $1,250.00
$70.00
$151.00
$1,250.01 – $1,500.00
$85.00
$184.00
$1,500.01 – $1,750.00
$100.00
$216.00
$1,750.01 – $2,000.00
$115.00
$249.00
$2,000.01 – $2,250.00
$130.00
$281.00
$2,250.01 – $2,500.00
$144.00
$300.00
$2,500.01 – $2,750.00
$160.00
$337.00
$2,750.01 – $3,000.00
$172.00
$362.00
$3,000.01 – $3,250.00
$186.00
$400.00
$3,250.01 – $3,500.00
$200.00
$433.00
$3,500.01 – $3,750.00
$214.00
$463.00
$3,750.01 – $4,000.00
$228.00
$494.00
$4,000.01 – $4,250.00
$242.00
$524.00
$4,250.01 – $4,500.00
$256.00
$554.00
$4,500.01 – $4,750.00
$270.00
$585.00
$4,750.01 – $5,000.00
$283.00
$613.00
*You will receive a notice explaining how your credit score may impact the cost of your Line of Credit.
3-Step Process to Open Your Line of Credit Account
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Step 1: Submit your Request
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Step 2: Get Approved1
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Step 3: Request a Draw Online
A Line of Credit through CreditFresh provides you with financial flexibility and a safety net for unexpected expenses that may come your way. Submit a request today – getting started is simple and the process only takes a few minutes to complete.
Why Choose a Line of Credit through CreditFresh?
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Quick and Easy Online Application
Applying is quick and easy – and can be done from home or on-the-go. The process is transparent and can be completed in minutes.
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Fast Funding3
Enjoy fast funding as soon as the same business day3 so that you can handle emergency expenses with urgency.
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