Line of Credit in Kansas

A Line of Credit is a form of borrowing that provides access to a predetermined maximum Line of Credit amount, known as the credit limit. Unlike traditional loans, where you receive a single lump sum amount, a Line of Credit allows you to borrow money as needed up to the approved limit. You can think of a line of credit as an additional option that’s readily available when you need it. Once you’re approved for a Line of Credit, you can access funds when you need to cover unexpected expenses. As you make timely payments, the credit becomes available again and can be used at your convenience.

To understand how a Line of Credit works, let’s go through a step-by-step process:

1. Application: You apply for a Line of Credit online by submitting an application. We will review your credit score, income, identification, and other factors to evaluate your credit profile.
2. Approval: If approved, you are given a credit limit, which is typically the maximum amount you can borrow. The actual amount you can borrow at any given time depends on your outstanding balance, credit limit, and terms of your account agreement. You can track this available credit in your Account Home.
3. Accessing Funds: Once the Line of Credit is established, you can access the funds easily and conveniently.
4. Repayment: As you draw on your Line of Credit, you’ll start accruing interest on the borrowed amount. You will need to make minimum periodic payments, which can vary based on your outstanding balance and the terms of the account agreement. You will receive a statement each billing cycle that details account transactions, charges and fees, as well as the amount of your minimum payment and when it’s due.
5. Available Credit: As you timely repay the borrowed amount, the credit becomes available again, providing you with a source of funds that you can use whenever the need arises.

A “draw” refers to the act of borrowing funds from your available credit line. One of the benefits of our Line of Credit product is the option to initiate daily draws, so you have the ability to withdraw (or “draw”) funds from the credit line at your convenience. The amount you draw is added to your outstanding balance, and you are then required to make regular payments on the drawn amounts according to the terms of your account agreement. You control when and how much you draw against your Line of Credit. As long as your account remains in good standing, you can draw what you need up to your credit limit.

To apply for a Line of Credit in Kansas, follow these steps:

• Check Eligibility: Review the eligibility criteria. For a Line of Credit with Flexibility, you’ll need to meet the following minimum requirements:
  • Must be employed or have a source of regular income.
  • Must be a US citizen or a permanent resident.
  • Must be 18+ years of age.
  • Must have an active checking account in your name.
  • Other credit eligibility requirements.
• Gather Documentation: In certain cases, we may need additional documents, which may include proof of identity, income, and bank account verifications. It can speed up the process if you have these on hand.
• Apply Online: Submit your application here.
• Wait for Approval: We’ll quickly review your application and assess your credit profile and financial situation.
• Agree to Terms: If approved, carefully review the terms of the account agreement, including interest rates and repayment options, before agreeing to the terms.
• Start Using the Credit: Once approved, you can start using your Line of Credit to cover expenses as needed.

A Flexibility Line of Credit is only available in select states. To be eligible, you must be a resident of the state in which you apply. For a list of current states, please click here. However, Flexibility is continually expanding into new states to better serve consumers around the country, so make sure to check our website from time to time.

Yes, if you’re able to, we recommend you pay down as much of your Line of Credit balance as you can. This will help reduce your interest charges. Maintaining a lower balance can also allow you to have a higher draw amount of available credit.

Both installment loans and lines of credit are common types of financial products used to borrow money. Each operates differently and has its own pros and cons.

A Line of Credit is a flexible financing option intended to allow you to access a predetermined credit limit when you need it. A borrower is given a maximum amount allowed to borrow, also known as the “credit limit”, and can typically borrow or draw any amount, up to the approved credit limit. You will only be charged interest on the borrowed or drawn amount. High-interest lines of credit can be expensive and should be used only for short-term financial needs, not long-term solutions. This is why it is recommended that you only borrow what you can afford to pay back.

On the other hand, a Kansas installment loan would be repaid over a fixed period of time in regular installments. Generally, a borrower receives the approved loan amount upfront and pays back a portion of the principal and the interest and/or fees through each required minimum payment, until the loan is fully repaid.

A key difference between a Kansas installment loan and Line of Credit is how a borrower receives and pays back the funds. With an installment loan, a borrower typically receives the full amount upfront and repays the loan according to a predetermined repayment schedule, whereas a Line of Credit allows the borrower to access funds as needed. Overall, there are various types of installment loans and lines of credit and each may have features that are suited to different borrowing needs. Always closely review your account agreement and loan terms to find a product that works for you.