About the Line of Credit
A MoneyKey Line of Credit provides you with the benefits of a traditional loan, but allows you to have more control over your cash flow. Once approved, you can borrow any amount up to your available credit limit. When you pay down the principal balance of your Line of Credit, you can continue to access the remaining credit available up to your credit limit.
What is my Credit Limit?
Your credit limit is the amount of cash that you can access on your MoneyKey Line of Credit. For this Line of Credit, credit limit amounts range from $200 to $1,000.
How much will my Line of Credit cost?
Your MoneyKey Line of Credit accrues interest at a Daily Periodic Rate of 0.06575%. The corresponding interest rate is 24%. Interest is only charged on the amount you use i.e. the outstanding principal balance. Interest is calculated by multiplying the Daily Periodic Rate by the Average Daily Principal Balance of your account during that billing cycle.
Your account will accrue a Cash Advance Fee each time you withdraw funds from your Line of Credit. This fee will be equal to ten percent (10%) of the amount of the withdrawal. For example, if your credit limit is $750 and you obtain a $500 advance, we will deposit $500 into your bank account and include a Cash Advance Fee of $50 on your next Periodic Statement.
- As a monthly paid customer, you will be charged a Minimum Account Charge of $30 for each $100 of your Average Daily Principal Balance as calculated at the close of each billing cycle OR
- As a weekly, bi-weekly, and semi-monthly paid customer, you will be charged a Minimum Account Charge of $15 for each $100 of your Average Daily Principal Balance as calculated at the close of each billing cycle.
How is the Average Daily Principal Balance calculated?
The Average Daily Principal Balance of a MoneyKey Line of Credit is calculated by adding the Daily Balance of your Line of Credit account for each day in your billing cycle and dividing that sum by the number of days in your billing cycle.
The Daily Balance of your Line of Credit account is the daily opening balance of your account, plus any new withdrawals you make on such day, less any principal payments/credits made to your account on such day.
What is the Required Principal Payment?
The Required Principal Payment, which is included in your Minimum Payment, will be equal to 2%, 5% OR 10% of the Outstanding Principal Balance as of the close of each billing cycle.
If you opened your Line of Credit prior to May 24, 2016
Your Minimum Payment contains a 2% contribution toward your Outstanding Principal Balance. In other words, if you only make your Minimum Payment on your next Due Date and you have no Amount Past Due and do not make any additional draws between now and your Due Date, you will reduce your Outstanding Principal Balance by 2%.
If you opened your Line of Credit on or after May 24, 2016
For customers who receive their income on a weekly, bi-weekly or semi-monthly basis, your Minimum Payment includes a 5% contribution toward your Outstanding Principal Balance. For customers who receive their income on a monthly basis, your Minimum Payment includes a 10% contribution toward your Outstanding Principal Balance. In other words, if you only make your Minimum Payment, have no Amount Past Due, and do not make any additional draws between now and your Due Date, your Outstanding Principal Balance will be reduced by 5% or 10%, depending on your income frequency.
MoneyKey encourages you to make additional payments over and above your Minimum Payment in order to pay down your principal balance thereby reducing your principal balancing owing, increasing your available credit and decreasing your interest charges. If you want to make additional payments or pay your Line of Credit down to a zero-dollar balance, you must contact us at least 24 hours prior to your due date.
What is my Minimum Payment?
Your Minimum Payment is the minimum amount due in each Billing Cycle. Your Minimum Payment will consist of (i) Fees accrued during each billing cycle (includes the cash advance fee plus the minimum account charged); (ii) Interest accrued during each billing cycle; and (iii) your Required Principal Payment.
As mentioned above, MoneyKey encourages you to make additional payments over and above your Minimum Payment in order to reduce your principal balance owing and minimize your fees and interest charges.
Are there additional charges?
No. There are no additional charges beyond what has been disclosed here.
Can I cancel my Line of Credit?
You can rescind your Line of Credit at no cost within three (3) business days of the effective date of your initial draw by phone at 1-866-255-1668 or via email at email@example.com. If you do rescind your Line of Credit, you will be responsible for returning the entire principal balance back to us. If you do not return the entire principal balance to us, your Line of Credit will remain in full force and effect and you will accrue fees and interest on such outstanding principal balance.
Who funds the Line of Credit in Maryland?
Lines of Credit in the State of Maryland are funded by MoneyKey-MD, Inc.
I have a few more questions
For additional questions, or if you would like to learn more about the MoneyKey Line of Credit, please call our friendly Customer Care team at 1-866-255-1668, or check out the frequently asked questions (FAQs) for this product.