How Does a Line of Credit Work?

A line of credit works in a similar way to a credit card, in that you have the freedom to use the cash when you need it. You apply once and have access to your credit limit as long as your loan remains open.

How to Apply for a Line of Credit Loan

How Does a Line of Credit Compare to a Payday Loan?

A line of credit gives you more flexible options than other short-term credit products, such as payday loans. Let’s compare. A payday loan is a short term loan that offers you cash that is typically scheduled to be paid back in full on your next pay day, along with a flat fee. A line of credit loan allows you to make monthly payments and not pay off the full loan at one time. A line of credit allows you to pay down your loan, and then access more cash - up to your credit limit - at any time. Whereas with a payday loan, if you need more cash, you have to apply for a new loan.

  Line of Credit Loans Payday Loans
Repayment Terms There are several repayment options to choose from, including making minimum payments gradually over time or repaying your balance in full to reduce interest. Payday loans are typically due to be paid in full on or around your next pay day.
Loan Fees Pay daily interest for the time you use the cash. If you do not have a balance, there are no fees to keep your loan open.
View an example finance charges.
Usually you will pay a flat fee or flat percentage for the amount you borrow.
View an example fee schedule.
Additional Cash Apply only once and request cash advances as often as you need up to your available credit limit. As you pay down your balance, you have more credit to access. If you need additional cash, you will have to apply for a new payday loan once your current loan is paid in full.

Line of Credit Loan Questions

A: Speedy Cash offers line of credit loans up to $1,500. The amount that you’re approved to borrow is based on a number of different factors including your monthly income and credit score.

A: Depending on the state you live in, Speedy Cash offers multiple ways for you to access your credit. You can access your credit using our mobile app, by signing into your online account, or by visiting a Speedy Cash location (where stores are available).

A: Speedy Cash gives you options to repay your loan. You can choose from any of the following payment options:

  • Minimum Payment: Each billing cycle, all interest accrued at the end of the prior billing period and a percentage of your principal balance will be due.
  • Additional Payments: You may make payments in addition to your minimum, in any amount and at any time. Repaying your account balance early can reduce your interest.
  • Pay in Full: You may pay your account balance in full at any time without any prepayment penalties. Paying your balance in full will reduce your interest and reinstate your full available credit.

Have more questions?

Visit our FAQ page.