What is Credit Line?
Credit Line is a separate Pocket that can be added to your One account. It works just like a credit card but without the high-interest rates, separate applications, and annual fees! Assign your One card to the Credit Line Pocket to charge a purchase. It’s easy to use Credit Line to finance a purchase like a new couch or unexpected car repair, so you can pay off the purchase over time.
How Credit Line compares to traditional credit cards
Your Credit Line limit can grow over time. As more direct deposits come into your One account, you may become automatically eligible for an increased limit. Instead of being offered an exorbitantly high credit limit from the start (like traditional credit cards), One uses a variety of factors to offer you a credit limit that fits your needs and cash flow. Traditional credit cards often offer higher limits that might not make sense for you and could easily put you at risk of falling into a debt hole. We’re here to support you when you need to borrow money, but never an amount that you couldn’t repay. When you do become eligible for a new limit, you’ll be offered the same rate and terms.
5 reasons to use Credit Line instead of a credit card
1. No Fees
It’s sometimes hard for people to believe that there are no fees to use Credit Line. We’ve been conditioned to believe that it’s too good to be true and something must be lurking in the fine print that we haven’t found yet. Unlike traditional credit cards that have late fees, annual fees, or other unnecessary fees buried in fine print, Credit Line is fee-free all the way through.
2. No Balance Transfer Fees
If you’re looking to consolidate your debt at a lower interest rate, Credit Line may be able to help. Traditional credit cards charge a 3-5% balance transfer fee that can get stacked on top of the debt you already owe. Unlike credit cards, Credit Line has no balance transfer fees! Easily pay off all or a portion of your debt on another credit card by assigning your One card to the Credit Line Pocket then make a one-time payment to the original card. There can be huge savings when you are able to borrow at a lower interest rate, even a few less interest points can make a difference on your monthly payment and length of the loan.
3. No Dings To Your Credit Score
Every time you apply for a traditional credit card application, your credit score can take a hit. It’s because they are performing a “hard credit inquiry” and too many of those in a short amount of time can lower your credit score. When we offer Credit Line to One customers, we’re only performing a “soft credit inquiry” which means your credit score is safe and won’t be affected. If you’re preparing for a large purchase like a new car, mortgage, or personal loan, you’ll want to carefully watch what and how often you’re applying for new credit.
4. No Varied Interest Rates
Introductory rates at traditional credit cards can get you in the door, but often one small misstep (missed payment, partial payment, etc.) can make your interest rate skyrocket to an unbelievable high APR. One’s Credit Line at 12% APR⁑ is a fixed rate from day one until day zero. We’ll never double, triple, or even quadruple your interest rate because you had a small bump in the road.
5. No New Card
No one wants to be carrying around a 4” thick wallet chock full of plastic. We’re minimizing your wallet along with what you need to keep track of with Credit Line. Enjoy using the One card you already have and easily reassign it in the One app to spend from your Credit Line Pocket at any time then switch back to use it as a debit card. One card, many uses.
Organize your money, simplify your life. Make real progress.
Katie is a tech and finance writer, covering stories from building better financial health to credit cards. They are currently based in Sacramento, CA with their puppy Ollie and cat Bagel.