What Is Instant Credit and How Does It Work?
Transferring money from your bank to your MyConstant account is easy but not always quick. Some ACH transfers can take up to 5 business days to reach your account.
As a result, we’ve introduced Instant Credit — a program that gives you an immediate line of credit on MyConstant — so you can start earning immediately.
Here’s how Instant Credit works:
Your Instant Credit limit = Value of your current balance + $1,000 (max $5,000)
For example, if you have a balance of $4,000, your Instant Credit limit is $5,000. This means if you deposit $5,000 or more in a single transaction you’ll earn 4% APY on the first $5,000 immediately, or can invest it in a fixed-term loan for 6-7% APR. Please note you can’t withdraw Instant Credit.
Remember though, if we don’t receive your ACH within 21 days from the time you initiated the transfer your instant credit will be canceled. That includes any and all investments made using instant credit.
If this is due to an ACH reversal, you may also be charged a fee and have your instant credit limit revoked.
As of November 18th, 2020 — once your ACH transfer has cleared — you must wait 7 days to withdraw fiat funds. This helps avoid ACH reversals (which cost you money) and keeps withdrawals free.
How to avoid an ACH reversal
An ACH reversal occurs when an ACH transfer is canceled and the money returns to your account.
We have a blog (scroll halfway down) that explains what happens with an ACH reversal, how to avoid them and the penalties incurred.
The primary points you want to remember to avoid an ACH reversal are the following:
- Ensure that your bank account accepts ACH transfers.
- Make sure you have enough money in your account for at least 48 hours after your ACH request.
- Link a checking account, not savings account, to avoid any withdrawal limit.
Even though ACH transfers can be a bit slow, our Instant Credit program ensures that you can start using your money instantly. Let us know at [email protected] if you have any questions with Instant Credit or linking your bank account.
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