Line of Credit FAQs
“What does ‘line of credit’ mean?” “How does a line of credit loan work?” Are these questions you want answers to? Take a look at our line of credit loan answers below.
The Essentials
Q. How does a line of credit loan work?
A:
If you’re familiar with the way credit cards work, then you’re familiar with a line of credit loan: you have a max amount available and daily interest. For example, you could be approved for $500, but you’re in control of how much you borrow (up to your credit limit). As you pay back your principal balance, you can access your available credit up to your approved amount. Oops, we forgot to mention you can access your available credit limit all without having to apply for a new loan! Yup, you read that right.
Q. How much money can I borrow with a personal line of credit?
A:
The maximum amount you can borrow with an Avío Credit line of credit is $5,000. Don’t stop reading! Our legal team likes us to make sure we dot the i's and cross the t's…The amount you’re approved to borrow depends on a variety of factors including your state, monthly income and credit score. If approved, you’ll be given your credit limit during the online application process.
Q. How can I access my available credit?
A:
As long as you have available credit, then you can get access to it! You can request a cash advance within your online account. Your account will clearly show if you have available credit and the amount available. If you don’t have available credit, then you will have access to credit once you pay down your principal balance.
Q. Can I change what my credit limit is?
A:
Unfortunately, this feature is not available at this time but it could be one of our future projects. Thanks for suggesting the idea!
Q. Will my interest rate ever increase?
A:
Nope! What you see is what you get. We don’t believe you should stress about interest rates changing on your loan. With an Avِío Credit line of credit loan, the rate outlined in your loan agreement will stay the same throughout the entire life of your loan!
Application Process
Q. What do I need to apply for a line of credit?
A:
Here’s what you’ll need to get started on applying for an Avío Credit line of credit:
Form of identification
Steady source of income
Open and active checking account
Valid email address
Q. Can you let me know if I am approved before I give you all of my personal and banking information?
A:
Unfortunately, your application for credit cannot be submitted without filling out all the necessary information on our loan application. We ask for your banking information because, if approved, it is the fastest and easiest way for us to deposit your funds into your account.
Q. When will my money be deposited?
A:
Avío Credit will fund your online personal loan using direct deposit. This means money in your pocket (well, bank account) in less than one business day! However, keep in mind that technical errors can happen once in a while, in which case it might take a bit longer than one business day to receive your money. Technology makes things quicker…most of the time!
Repayment ABCs
Q. What are my repayment options?
A:
Avío Credit gives you options on repaying your personal loan. Choose from any of the following 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 early payment penalties. Paying your balance in full will reduce your interest and reinstate your full available credit.
Q. When will my payments be due?
A:
Payments are typically due around your pay days. Your personal loan payments include a percentage of the loan’s principal balance, plus the accrued interest.
