Overdraft and Credit Line

What is Overdraft?

• Your One account provides access to a low-cost, flexible credit through Overdraft.
  Overdraft is fee-free!
• Overdraft connects to your Spend Pocket to cover purchases that take your balance below $0.
• Overdraft is automatically repaid with deposits into your Spend Pocket.
• If you need to carry a balance into the next month, we charge you 1% interest a month, 12% APR.
• You can enable Overdraft directly in your Spend Pocket.
• If you add a paycheck direct deposit to your One account, you may be eligible for an increased Overdraft limit with time.
• Fund your One account with a single deposit of at least $20 to get access to Credit Line Overdraft Protection.

What is Credit Line?

• For qualified paycheck customers, One account provides access to low-cost flexible credit through Credit Line
• Add Credit Line to your One dashboard by tapping Get more from One in the One app.
• Overdraft and Credit Line both share the same credit limit.
• Credit Line displays any credit you have used as a positive balance.
• Your available credit can be used by assigning your One card to the Credit Line Pocket. After assigning your One card, subsequent card transactions are posted to this Pocket until you reassign it to another Pocket.
• Credit Line is also where you will repay any credit that you use.
• You can view your total balance, your minimum payment due, your next due-date, and the ability to repay any balance in the Credit Line Pocket.
• Credit Line has a monthly grace period before interest is owed. You will have up to the bill due date of the month in which you owe credit to repay before owing interest at 1% per month, or 12% APR.
• On the bill due date, your payment is due and includes interest accrued during the month.
• To repay your Credit Line balance:
  • Tap Pay in the Credit Line Pocket then transfer funds into the Credit Line Pocket using any available funds from other Pockets.

FAQs

What is different between Overdraft and Credit Line?

Overdraft and Credit Line are different loan accounts. Both are revolving lines of credit, but they share a single credit limit. We linked these credit products so they can work how you actually use your money—not like the traditional products that big banks offer.

Overdraft automatically covers any transactions that would make your Spend Pocket negative, and charges an interest rate if you carry a negative balance. Unlike many traditional overdraft products on the market today, One does not charge fees.

Credit Line is a separate Pocket, designed for when you need to carry a balance, or finance a purchase. For example, If you need to make a purchase in one month, such as a new couch—you can charge it to the Credit Line Pocket and pay it off over time. Assign your One card to the Credit Line Pocket then purchase the new couch.

The two Pockets share a single line of credit. One underwrites your single One amount and you can choose how to use the money. For example, you have a $100 limit, you could be negative $50 in Overdraft and have a balance of up to $50 in Credit Line for a total of $100.

• Fund your One account with a single deposit of at least $20 to get access to Credit Line Overdraft Protection.

Does it cost me anything to use Overdraft?

Overdraft kicks in when your Spend Pocket drops below $0.00. Overdraft begins accruing interest at 1% per month, or 12% Annual Percentage Rate (“APR”)*, at the time of an Overdraft transaction. You will not be charged interest on Overdraft if you repay it in full by the end of the same calendar month in which you initiated the transaction(s). Any negative balance, including billed interest, will be automatically paid down with the next deposit into your Spend Pocket.

Does it cost me anything to use Credit Line?

There are no fees to use Credit Line. If you carry a balance—paying less than the total amount due on your bill—we bill you 1% per month, or 12% APR. Credit Line works like a traditional credit card.

How much available Credit do I have?

Your available credit limit is visible inside the One app dashboard and in the Spend Pocket.
If you enabled Overdraft and also have Credit Line, your available credit can be used through spending past $0.00 in your Spend Pocket, directly with Credit Line, or a combination of both. As credit is used from either Spend Pocket or Credit Line, the available credit will proportionally decrease in the other.

How can I increase the amount of credit I have access to?

You may be eligible for an increase in your Credit Limit after a direct deposit has been added to your One account for over a month. To be eligible, the monthly income must be a qualifying direct deposit of more than $500. Learn more about what qualifies as a direct deposit here.

You can also check if you are eligible for an increase when you log into your One account then tap in your Spend Pocket settings. Tap the 3 stack dots in the top right corner of your Spend Pocket then tap the Check eligibility button next to Credit limit increase.

If you have a Credit Line and are eligible for an increased limit, you will see a message in your One app dashboard notifying you to accept your increase. This new limit is available at the same rate and terms.

We do not manually review Credit Line increase requests. Instead, our system is constantly looking at the amount and consistency of your direct deposits and other factors, such as credit history, to make automatic updates to the available credit.

What is the difference between using Overdraft through Spend and using Credit Line directly?

Overdraft can only be used through Spend by spending below $0.00. Credit Line works like a traditional credit card and can be accessed directly without taking your Spend Pocket below $0.00. Simply assign your One card to Credit Line to begin using Credit Line funds for a purchase.

Overdraft kicks in as soon as you drop below $0.00 in your Spend Pocket. You won’t owe interest on Overdraft if the credit you use is repaid in full by the end of the calendar month from when the first Overdraft transaction is made. When unpaid, Overdraft charges interest at 1% per month, or 12% APR*, which begins accruing at the time of an Overdraft transaction.

Eligible customers can also access the separate Credit Line by setting up a paycheck direct deposit. This Credit Line begins accruing interest at 1%, or 12% APR, at the time of a Credit Line transaction and can be repaid directly within the Credit Line Pocket. Customers can assign their One card to the Credit Line Pocket to access Credit Line funds directly at any time.

Customers can assign their One card to Credit Line to access funds directly (not just through Spend) at any time. Customers who have at least one paycheck direct deposit in their One account can also transfer funds from Credit Line to their Spend Pocket.