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.