Line of Credit Service

As the holder of the prepaid debit card you may qualify for a line of credit from which funds can be transfeered immediately onto your prepaid debit card. The Line of Credit service can help get you through a financial emergency by providing you funds when you need them most.

Use Line of Credit Wisely

Qualification Criteria

You qualify when your employment and wages have been verified. Once you become eligible, the Line of Credit will be available to you.

Cost of the Line of Credit

For every $20 you access, you will be charged a fee of $2.50, which will be deducted from you next deposit.

Accessing Line of Credit for Short-Term Needs

In each case, the funds are immediately transferred onto your prepaid debit card. Credits, fees, and repayments are shown in the transaction history associated with your card.

Repaying Your Balance

The full amount of any outstanding balance and fee must be repaid within 35 days. Any outstanding balance and fee will be automatically deducted from any electronic deposit that occurs after you request the funds, which could include your recurring payroll or other benefit-related income or a special one-time, non-repetitive deposit (e.g., a tax refund, dividend, or insurance check). As a result, while each credit must be repaid within 35 days, your credit may be repaid much sooner depending on the timing of your next electronic deposit. (For additional information and examples, read the "How is my credit repaid?" question below.)


Frequently Asked Questions

How do I know how much I can access?

Once you become eligible for the Line of Credit service, your available credit limit can be obtained by going online to the website provided, or by calling the Line of Credit Customer Service number on the back of the card. Like other lines of credit, as you transfer funds from your line of credit, your available limit will decrease. When the funds are repaid, your available credit limit is restored.

How is the fee calculated?

The fee is a one-time transaction charge and is not dependent on the length of time the accessed funds are outstanding. The fee is $2.50 for every $20 that is accessed.

How is my credit repaid?

When subsequent deposits are made onto your prepaid debit card, an automatic repayment of your outstanding credit and fee will be made. Any deposits (such as your payroll or benefit-related income, tax refund, or other special one-time non-repetitive deposits) will be used for repayment. For example, if you receive your paycheck every two weeks, the accessed funds and fee will be repaid on the same day your next paycheck is electronically deposited onto your prepaid debit card, even if you accessed the funds only one or two days prior to the next deposit. Plan ahead – and understand that this type of credit is expensive. For example, if you receive your paycheck every two weeks and need a $200 credit for approximately two months, the $200 credit will be repaid with your next paycheck and you may need to take another credit. In this scenario, in the absence of other sources of income, you would need to initiate the credit four times during the two-month period and would incur a total of $100 in fees (four $200 credits at a cost of $25 per credit equals $100). If your incoming deposit is not sufficient to repay the full outstanding credit and fee, a partial repayment will be made resulting in an unpaid balance. The Bank will take repayment of the remaining unpaid balance from any deposit until the credit and fee is repaid in full. For example, assume you have a total outstanding balance of $180 ($160 credit and a $20 fee) and you receive an electronically deposited paycheck of $150. The Bank will take $20 for the outstanding fee and $130 repayment leaving a $30 remaining balance to be repaid. The remaining $30 unpaid balance will be repaid from the next electronic deposit. However, if any credit or fee is not repaid in full within 35 days from the date of the credit, the Bank will automatically debit your prepaid debit card for the necessary amount (see response below).

When does my credit need to be repaid?

If no electronic deposits (or electronic deposits in an insufficient amount) are made into your checking account for a period of 35 days, we will automatically debit your prepaid debit card for the full amount of the outstanding credit and fee. If there are insufficient funds on your prepaid debit card at that time, all remaining funds will be withdrawn so you will have a $0 balance and a pending payment of the remaining balance. As a result, any additional transactions on your prepaid debit card will be declined and subject to transaction fees for declines. If you cannot repay your remaining Line of Credit balance and fees, you risk the termination of your prepaid debit card.

How often can I access my line of credit?

You may access your line of credit (in $20 increments) as often as you like – up to your available credit limit. This service is designed to provide access to cash on a short-term basis when you may need it most. If you use the service for more than 12 consecutive periods, your credit limit will be gradually reduced by $100 in future periods until your credit limit is $0 or you do not use the service for one period. (A period is approximately one month – your exact period cycle dates can be found at Line of Credit Customer Service.) For example, assume your calculated line of credit limit is $500 and you have used the Line of Credit service in each of the last 12 consecutive periods. In the 13th period, your line of credit limit will be $400 ($500 less $100). If you continue to use the service your line of credit limit in the 14th period will be $300. If you continue to use the service thereafter, your line of credit limit will continue to decrease by $100 each consecutive period until it equals $0 for one period. You can avoid this reduction in your standard credit limit if you do not take a new credit for one complete period at any time. Your current line of credit limit is available at the Line of Credit Customer Service web site or phone line.

What if my prepaid debit card balance is negative when I access my line of credit?

When you access the service, the credit is automatically transferred onto your prepaid debit card. If your prepaid debit card is negative, the credit will be applied as a “deposit” against your negative balance. If your prepaid debit card balance is negative for up to seven consecutive days, you will not be able to access the Line of Credit service.

Can the Line of Credit Service be used to prevent declines of my prepaid debit card?

If you find yourself in a situation where the funds on your prepaid debit card may be insufficient to cover transactions for which you typically use your card, you may choose to access the Line of Credit service to avoid declines on those transactions. However, in order for a credit to cover a transaction that otherwise would be declined for insufficient funds, the credit must be completed before you incur the transaction that otherwise would be declined. The funds will be automatically transferred onto your prepaid debit card. The Line of Credit service is an expensive form of credit, and while the fee may be lower than an overdraft or insufficient funds fee, you may want to consider other forms of overdraft protection that may be available to you.