A personal line of credit is neither a credit card nor a personal loan, but it functions a little bit like both. Like a credit card, Elasticâ€™s line of credit lets you borrow any amount of money, up to your credit limit, at any time. You can pay that money back at your own pace, as long as you make the minimum payment required each month.
However, unlike a credit card, you must request a cash advance online to withdraw the money you need; your funds will then be deposited into your checking account or sent to you as a check by mail. Other lines of credit like Elastic, such as Mobiloans, operate similarly.
Fees depend on your billing cycle, and theyâ€™re higher for customers who elect to pay monthly rather than bi-weekly or semi-monthly. Elasticâ€™s cash advance fee is charged as a percentage of any funds you request. If you donâ€™t pay your balance off in full before your billing cycle ends, youâ€™ll also be charged a carried balance fee according to the balance remaining on your statement.
Here are those fees in action:
Because of the fee structure on Elasticâ€™s line of credit, it can be expensive for customers who donâ€™t pay off their balance in full each billing cycle.
To be eligible for an Elastic line of credit, you must be at least 18 years old (19 years old if you live in Alabama or Nebraska), have an active checking account, have a regular source of income or benefits and reside in a state where Elastic is offered. The lender website, however, does not explicitly outline in which states it operates.
The ability to draw on the Elastic line of credit whenever you need extra cash makes it a great option for people who canâ€™t save up an emergency fund. Itâ€™s recommended that you have at least six months of basic living expenses in a savings account to cover emergencies and unexpected events.
When deciding whether a personal line of credit or a credit card is best for you, consider that low-interest credit cards are reserved for borrowers with strong credit. You could open a secured credit card if you have bad credit, but they do come with low credit limits.
Elasticâ€™s line of credit is good for short-term needs, as carrying a balance from month-to-month will result in hefty fees; people looking to finance something long-term might consider a bad credit personal loan. The best way to use Elasticâ€™s line of credit is to pay your balance in full every month.
Many Elastic reviews on LendingTree (which owns MagnifyMoney) speak positively about how fast and easy it is to borrow money while admitting that the fees are incredibly high, while a number of customers also mentioned how convenient Elastic could be in times of emergency.
Hector, a resident of Pompano Beach, Fla., found it â€śquick and easyâ€ť to get funds for an emergency situation: â€śLike they said, the next day you will have the money and thatâ€™s exactly what happened.â€ť
However, several Elastic complaints have mentioned confusion over finance charges and problems paying off a balance early.
You can apply for Elastic quickly and easily. From Elastic.com, you can enter your name, email address and state of residence to get started. If eligible, youâ€™ll then be prompted to create an Elastic account from which you can complete the application.
As you move through the process, Elastic will require identifying information such as your Social Security number, and theyâ€™ll also check your credit to determine whether you qualify for a line of credit, and for how much.
If your Elastic loan application is approved, the cash advances you request are usually deposited in your bank account the following business day, if you elect for direct deposit.
No. Loans involve a one-time, fixed deposit in your account and are paid off in regular installments, whereas Elasticâ€™s line of credit is there for you to withdraw the amount you need when you need it.
No. Elastic does charge higher fees than many lenders, but those fees are clearly stated on their website.
Yes. In order to complete the application process, you will have to undergo a credit check.
It depends. If you miss payments or carry a high balance relative to your credit limit, you could experience a drop in your credit score. However, if you pay off the money you borrow on time, a line of credit can help you build credit.
If you miss your required payment for even one month, you wonâ€™t be able to request new cash advances and you may face defaulting on your line of credit. Once youâ€™re in default, you may be required to pay off your balance in full immediately, and you could see a negative impact on your credit.
If you request a cash advance before 5:00 p.m. EST, your funds will be sent by direct deposit the next business day or by check in the mail within two business days.
Applicants who are listed as Covered Borrowers in the Military Lending Act database are ineligible to apply for an Elastic line of credit.
You can select to pay monthly, bi-weekly or semi-monthly. Monthly means your payments are due once per month, bi-weekly means your payments are due every two weeks and semi-monthly means your payments are due twice per month.
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