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.

Subject to state regulations, eligibility, credit check, underwriting and approval. Rates, terms and conditions apply. Installment title loans subject to minimum auto value requirements. See associate for details. Lending decisions and funding times subject to system limitations. Same day funding only available for Opt+ cardholders and in-store pickup. Minimum age to apply in Alabama is 19. A single payday advance is typically for two to four weeks. However, borrowers often use these loans over a period of months, which can be expensive. Payday advances are not recommended as long-term financial solutions. Customers with credit difficulties should seek consumer credit counseling.

NOTICE: The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant's income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The Federal agency that administers compliance with this law concerning this creditor is the Consumer Financial Protection Bureau, 1700 G Street NW, Washington DC 20006 and the Federal Trade Commission, Equal Credit Opportunity, Washington DC 20580.

In Texas, Speedy Cash operates as a Registered Credit Access Business (CAB). The actual Lender is an unaffiliated third party. Speedy Cash engages in the money transmission business as an authorized delegate of Western Union Financial Services, Inc. under Chapter 151 of the Texas Finance Code. Speedy Cash engages in the money transmission and/or currency exchange business as an authorized delegate of MoneyGram Payment Systems, Inc. and Western Union Financial Services under Chapter 151 of the Texas Finance Code.

In Ohio, SCIL, Inc. dba Speedy Cash, is a registered Ohio Credit Services Organization (CS.900174.000) operating pursuant to the Ohio Credit Services Organization Act. The actual lender is an unaffiliated third party. The Ohio laws against discrimination require that all creditors make credit equally available to all credit worthy customers, and that credit reporting agencies maintain separate credit histories on each individual upon request. The Ohio civil rights commission administers compliance with this law.

CA: Licensed by the California Department of Business Oversight pursuant to the California Deferred Deposit Transaction Law. California loans other than deferred deposit loans are issued pursuant to the California Financing Law. Installment Title Loans subject to minimum auto value requirements.

Nevada: The use of check-cashing services, deferred deposit loan services, high-interest loan services or title loan services should be used for short-term financial needs only and not as a long-term financial solution. Customers with credit difficulties should seek credit counseling before entering into any loan transaction.

Tennessee: The State of Tennessee requires a minimum principal reduction. In order to comply with the minimum state-required principal reduction, Speedy Cash requires that minimum payments include a principal reduction of 2% or $2.50 for Customers who get paid bi-weekly/twice-a-month, or 4% or $5 for Customers who get paid monthly, whichever is greater.

Opt+: This card is issued by Axiom Bank or Metropolitan Commercial Bank, Member FDIC, pursuant to a license from Visa. Visa is a registered trademark of Visa USA Inc. All trademarks and service marks are property of their respective owners. ATM: Free withdrawals at any Speedy Cash or Rapid Cash location. Transaction fees will apply for all other ATMs. No charge loads/unloads at Speedy Cash and Rapid Cash locations only.

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