Polar Credit offers a credit line which is a new way to access cash quickly and manage your cashflow from month to month. Whether you have a flexible income or you like to have an available credit stream in case of financial emergencies, a credit line could be ideal for you. This article aims to establish what a credit line is, how credit lines work and the benefits of using a Polar Credit Line.
A credit line is often compared to a credit card because they are similar products in some ways. However the main difference is that a credit card means using a payments card to make purchases, whereas a credit line involves the funds being transferred directly into your bank account. This means you can spend the credit with your normal debit card, and you can meet direct debits and standing orders with minimal hassle.
You can withdraw up to your credit limit at any time (including weekends, throughout the night and on bank holidays) to help you meet unexpected payments or emergency expenses. Having a credit line means you don’t have to make a new application every time you want to access credit as it is a revolving credit facility. Additionally, you can only borrow up to your credit limit so there’s no risk of borrowing outside your approved limit (as is possible with some overdrafts).
Like a credit card, you must make at least a minimum payment each month, but otherwise the repayments are quite flexible. While it’s always advisable to repay as much of your credit line as you can afford, some months just aren’t very financially forgiving which is why a minimum payment alone is sufficient.
You can only apply for a Polar Credit Line online, but the application is quick and you’ll receive your decision within minutes.
If approved, you’ll be able to withdraw funds directly into your bank account on the same day. We use the Faster Payments Service to make the transfers so as long as your bank supports FPS, the money will be instantly in your account. There is a minimum withdrawal amount of £25, but you can withdraw as much of your credit limit as you need to cover your essential payments.
You can repay your balance in full at the end of your statement period, or you can just make a minimum payment – whatever works best for you. We would always encourage you to repay your credit line as soon as you can afford to do so. This also means you’ll have more of your credit limit available in future should something else unexpected crop up.
We will periodically review your credit line use to see if you qualify for a credit limit increase, or if your borrowing indicates you may benefit from a credit limit decrease. You can also ask to amend your credit limit at any time.
We want you to feel in control of your credit line, so if you no longer need the service, you can settle the balance and close the facility any time. Just send us an email or a contact form using our Contact page and we will happily action your request. If you decide you would like a Polar Credit Line again in the future, you will need to submit a new application.
There are several benefits of having a credit line with Polar Credit. Apart from having flexible repayments and occasional credit limit increases, we also actively work to reduce your rate of interest, so your borrowing actually becomes cheaper. You don’t have to do anything other than be a responsible borrower.
After your first year with us, we will reduce your interest rate by 10%, and then 5% every six months thereafter until you reach our minimum 29.9% pa interest rate. This is because we want to make borrowing sustainable, even if you don’t have the best credit score right now.
Polar Credit is a direct lender which means there are no brokers or middle-men involved, and we have a friendly customer service team on hand every day of the week to answer any queries or help you manage your account.
Visit the Polar Credit Info Hub to check out our other articles on credit lines, other credit products and general money management guides.