Helping you Understand the Cost of Credit

No one wants to run into hidden fees and confusing terms. With a Line of Credit through CreditFresh, you can expect a transparent experience with a simple repayment structure including a Billing Cycle Charge and Mandatory Principal Contribution.

Payment Breakdown

If you have an Outstanding Balance, you’ll be responsible for making Minimum Payments.

The exact amount of each Minimum Payment will vary depending on the activity on your account. You will receive a periodic statement before each due date which will give you all the information you need, including account activity and the breakdown of your upcoming payment.

Click each card below for some important definitions.

Mandatory Principal Contribution

help See Definition

The Mandatory Principal Contribution is the portion of each Minimum Payment that goes towards paying down 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.

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Billing Cycle Charge

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Each Minimum Payment includes a Billing Cycle Charge, which is calculated based on your Average Daily Principal Balance for each Billing Cycle. Refer to your Line of Credit Agreement, or any amendments, for the Billing Cycle Charges that apply to your account.

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Minimum Payment Amount

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Minimum Payments can be due on a bi-weekly, semi-monthly or monthly basis, depending on your income frequency. Each Minimum Payment includes a Mandatory Principal Contribution and a Billing Cycle Charge. The exact amount of each Minimum Payment will vary depending on the activity on your account.

Billing Cycle Charge Table

Your Line of Credit Agreement, or any amendments, will indicate the specific Billing Cycle Charges applicable to your Line of Credit. These documents can be found in your online account.Your Billing Cycle Charge is dependent on your

See below for an example of a Billing Cycle Charge table. Note that Billing Cycle Charges may vary based on your individual qualifications*.

"Average Daily Principal Balance" on your periodic statement: Receive income weekly, bi-weekly or semi-monthly, your Billing Cycle Charge: Receive income monthly, your Billing Cycle Charge:
$0.01 - $10.00 $5.00 $10.00
$10.01 - $250.00 $15.00 $30.00
$250.01 - $500.00 $30.00 $60.00
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* You will receive a notice explaining how your credit score may impact the cost of your Line of Credit

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How it Works

Meet Michael

How it Works

Meet Michael

Michael needs extra money for some unexpected home repairs and completes an application online at CreditFresh.com.

Michael is approved for a $5,000 Line of Credit and decides to request a draw of $2,025.

He needs to make repayments based on the Outstanding Principal Balance from his Line of Credit ($2,025).

Since Michael receives his income on a bi-weekly basis, the repayments on his Line of Credit will also be scheduled bi-weekly.

How Michael Pays Back his Line of Credit

If Michael decides to only make the minimum payment amount for each billing cycle, his remaining principal balance will steadily decrease overtime.

Average Daily Principal Balance Principal Contribution Billing Cycle Charge Minimum Payment Amount Remaining Principal Balance
Michael's 1st Repayment $2,025.00
$20.25
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$130.00
=
$150.25
 $2,004.75
Michael's 2nd Repayment $2,004.75
$20.05
+
$130.00
=
$150.05
 $1,984.70
Michael's 3rd Repayment $1,984.70
$19.85
+
$115.00
=
$134.85
 $1,946.86

Disclaimer: These are representative examples of the first three minimum payments. The examples assume a draw is made at the start of a billing cycle, 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. Continuing to only make Minimum Payments will take longer to pay down the Line of Credit. Additional payments are encouraged and payment in full is accepted, without penalty, at any time.

Make Extra Payments to Reduce Principal Balance Faster

If Michael were to pay more than the minimum payment amount for his first 10 payments, he would see his remaining principal balance decrease faster, and in turn, the amount he would pay in Billing Cycle Charges would also decrease faster, lowering his overall cost of credit. Compare Michael’s payments where he paid only the minimum amount versus if Michael had paid $50 extra on each scheduled payment. You can see how making extra payments reduced his principal balance and associated Billing Cycle Charges compared to only making Minimum Payments.

If Michael were to pay more than the minimum payment amount for his first 10 payments, he would see his remaining principal balance decrease faster, and in turn, the amount he would pay in Billing Cycle Charges would also decrease faster, lowering his overall cost of credit.

Compare Michael’s payments where he paid only the minimum amount versus if Michael had paid $50 extra on each scheduled payment. You can see how making extra payments reduced his principal balance and associated Billing Cycle Charges compared to only making Minimum Payments.

Michael Only Pays the Minimum
Payment Amount

$1,831.37

Principal Balance After 10 Payments

Save 11.4% in fees

VS
Michael Pays $50 More
Each Payment

$1,353.28

Principal Balance After 10 Payments

Savings of 11.4% in fees

Michael Only Pays the Minimum
Payment Amount

$1,831.37

Principal Balance After 10 Payments

VS
Michael Pays $50 More
Each Payment

$1,353.28

Principal Balance After 10 Payments

Savings of 11.4% in fees

lightbulbHelpful Tip

Making Extra Payments is Encouraged

There are no penalties for making larger or additional payments. In fact, as in Michael’s case, it may help reduce your principal balance and also decrease the amount you will pay in Billing Cycle Charges over time, subject to your individual account activity.

lightbulbHelpful Tip

Making Extra Payments is
Encouraged

There are no penalties for making larger or additional payments. In fact, as in Michael’s case, it may help reduce your principal balance and also decrease the amount you will pay in Billing Cycle Charges over time, subject to your individual account activity.

Payment Calculator

Try it out yourself

Use the calculator below to help give you an idea of how much you might owe for your Minimum Payments.

This calculation is for illustrative and general information purposes only. The Minimum Payments due for each Billing Cycle will vary depending on the activity on your account.

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2

$100

Average Daily Principal Balance Mandatory Principal Contribution Billing Cycle Charge Minimum Payment Amount

$0

$0

+

$0

=

$0

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