How do I use SimplyCredit?
To use SimplyCredit, you first apply for a new line of credit from one of our bank partners. The credit line will have an APR and credit limit based on your creditworthiness. If you accept the terms of this new line of credit, you will setup your SimplyCredit account by adding your credit and department store cards to your SimplyCredit account. You can make balance transfers to your cards from this new line, consolidating your balances to one low rate. You'll make one payment to your SimplyCredit line, saving on interest charges and paying down your debt faster than you would otherwise.
What terms will the SimplyCredit line of credit have?
The terms of your new line of credit (APR and limit) will be determined by your creditworthiness and the underwriting policies of the partner bank issuing the line. In general, the interest rate we offer you will be lower — often significantly lower — than what your credit and department stores cards currently charge. You have the option to decline the offer if you do not want it. Declining the offer will not impact your credit score in anyway.
Do you really only charge simple interest?
Yes, SimplyCredit lines use simple interest. We believe compounding interest — being charged additional interest because you’re borrowing from your cards — is unfair and predatory. To combat this, we charge only simple interest on the lines of credit we offer. Even if the bank partner offering your line of credit does not offer simple interest rates, we will pay the difference between the compound and simple interest charges so that you only pay simple interest.
What will this cost me?
There is no cost to use SimplyCredit. You will pay simple interest on any credit you use from the credit line we issue you.
What information do you need from me for a SimplyCredit account?
We need some basic information (your name, address) as well as your social security number and permission to pull your credit bureau report and determine the details of your new line of credit. After you accept the terms, you will need to securely link up your credit card, department store card, and checking accounts with your SimplyCredit account.
Is my information secure on SimplyCredit?
Yes, the security of the information you share with us is our top priority. We encrypt all sensitive information, including social security numbers and account numbers, and store it in a walled-off data environment with strict firewalls and access points. We do not sell or share your information with anyone except those required to run our service.
Are there any hidden fees or penalties that I might run into?
We have no hidden fees or penalties. We do not believe in charging extra fees or surprising you with unexpected penalties or fine print. The only fee we charge is simple interest on the credit you use.
Why do you need my checking account information?
You need to make one monthly payment to your new line of credit. Connecting your checking account lets you make this payment in the easiest way possible. At present, we do not accept payment by check or any other form.
How can SimplyCredit offer me a better rate?
Most credit card companies overcharge their customers. For example, department store cards charge interest rates between 25% and 30% regardless of your credit score because they feel they can lure customers in with one-time discount coupons. Working with our bank partners, your SimplyCredit rates are determined by holistic evaluation of your profile and not what we can get away with charging you.
What will my monthly payment be?
Your monthly payment is based on the amount of credit you are using and the interest rate (APR). Miminum payments need to cover that month's interest charges plus 2-3% of the principal, at simple interest. For $1,000 in balances at 9% APR, you can expect a monthly payment of about $30-$40.
You should always pay more than the minimum payment whenever you can. The more, the better, actually. Low minimum payments will help you get through the tough times, but making only the minimum payment on a regular basis will keep you in debt 2-3 times longer than you need to be.
How do I pay my monthly statement?
Your SimplyCredit account is connected to your checking account. We withdraw the correct payment amount from your checking account each month. You can either make onetime payments every month or you can enroll in AutoPay with the payment setting that works best for you.
Will you send me payment reminders?
Yes, we'll send you reminders. You can also customize the payment notifications for your account.
What happens if I miss a payment?
We encourage everyone to use AutoPay so that you never miss a payment. If you want to manually pay, we’ll send you reminders to help you remember when a payment date is coming up. If you still miss a payment then please pay as soon as you remember. You will pay no fees or penalties for a late payment. Even if the partner financial institution that provides the line of credit charges a late fee, we will pay it on your behalf so that you do not have a late fee.
If we have not heard from you to make alternative arrangements for your account and you are more than 30 days late making a payment, we will suspend the automatic payment of your enrolled cards and report your account as delinquent to the credit bureaus. Please be sure to contact us if you find yourself late and unable to pay.
What happens if I can't pay my monthly statements?
If you’re having trouble making your monthly payments, please contact us and we can come up with a plan to get you back on track. If we don’t hear from you within 30 days of the due date, your account will be marked as delinquent and we’ll have to report it to the credit bureaus.