How does paying off my line of credit work?

The process of paying back the line of credit is simple. You pay back part or all of the capital borrowed from your line of credit at your own pace.

However, you must repay the minimum payment shown on your monthly statement. This payment includes the sum of interest, insurance premiums (if any), and any additional amounts required to keep the account balance within the credit limit.

 

Important:

You need to make this minimum payment without using your line of credit.

Interest on a line of credit is calculated daily, from the first day it is used. So it's best to start paying off your balance as soon as you can. You can reuse the credit you've paid off whenever you want.

 

Want to learn more?

• See the financing comparison page for more details on how a line of credit works.

 

Good to know:

Pay off your line of credit as soon as possible to reduce the amount of interest you’ll need to pay.

 

Want to learn more?

Read our article on lines of credit to learn more.