Emerald Adavance Flashcards
APR and conditions payment
The Annual Percentage Rate (APR) is 35.9%. If approved, you are required to make minimum monthly payments on the outstanding balance. These payments will be the greater of $25 or 4% of the outstanding principal balance. If your payment is late for any reason, there is a $7.50 late fee. The late fee is applicable 14 days after the due date. If you do not make timely, minimum monthly payments, it is a breach of the Emerald Advance terms and conditions and disqualifies you from maintianing the year-round line of credit.
You are required to pay the entire outstanding balance down to zero no later than February 15, 2023
Annual Fee
Upon approval and as part of the initial draw, the annual fee of $45 is automatically deducted from the available credit. The subsequent annual fee if the borrower qualifies to maintain their line of credit year-round drops to $30
Late Payment
Each late payment and payments less than the minimum monthly payment amount which is $25 or 4% of the outstanding balance whichever is greater, will incur a late payment fee of $7.50. The late fee would apply if the payment isn’t made within 14 days of the due date. Note that the 14 days is not a grace period; all payments are due on the 15th of the month. There is also a fee of $20.00 for any payment made by check in which the paying bank returns the check for any reason.
Sources of Income
Wages and tips must be dated within 30 days of the current date of the application. This type of income document may be in the form of a pay stub or a different type of paycheck from an employer. It is important to pay attention to paystubs that may not have the employer’s name on them or perhaps are handwritten.
Social Security
Social security is a qualifying type of income and must be dated within 12 months. This source can come from a social security statement, a printout from the social security office, or even a bank account statement that shows the source of the income.
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When an applicant uses self-employed income for their Emerald Advance application, it is important to explain the why behind the need for the applicant’s prior-year return rather than just documentation that was used to complete the Schedule C.
Red Flags pay stub
validity of the document. Below are some things to be aware of.
* The employee’s social security number does not match the application or credit report. Note that for identity reasons, SSNs may not appear on the pay stub.
* The employee or employer’s name does not appear on the pay stub.
* Handwritten pay stub.
* Pay stub from a large employer that was NOT computer-generated.
* Different “type” fonts on the pay stub.
* Signs of correction tape, white-out, or alterations.
* “Squeezed” numbers. Numbers that appear tightly packed and different from other numbers and letters on the pay stub.
* Rounded dollar amounts.
* A check that was issued on a Sunday or holiday.
* The wages shown are not consistent with other income documentation (Forms W-2 or Form 1040).
* Borrower and/or party with same/similar last name signed payroll check.
* State tax not deducted (where applicable).
* Year-to-date totals do not add correctly from check to check.
* Social Security and Medicare taxes do not calculate correctly.
* Check numbers do not increase sequentially.
Non Qualifying Income
- Temporary disability and/or sick pay
- Temporary assistance for needy families (i.e., food stamps, etc.)
- Annual bonus
- Monetary gifts from relatives or others
- Rental income
- Royalties
- Farm income
- Interest and dividend income
- Income from businesses created in the current tax year
o This can be used for tax estimation - Unemployment
Singed Agreements
Document Purpose
Client Service Agreement Helps the applicant understand what to expect, and both parties agree to binding individual arbitration should a dispute arise. This is much the same as the CSA form that is used for tax preparation.
Emerald Advance Terms and Conditions A seven-page document that explains the terms of the Emerald Advance, including payment schedules, paydown date, resting period, qualification for year-round access, late fees, draws, and the Arbitration Agreement. This is the actual Line of Credit agreement that they agree to if approved.
Emerald Advance Application The applicant agrees that they are applying for the Emerald Advance line of credit, they are providing true and accurate information, and are not currently filing or planning to file bankruptcy.
Consent to Disclose Disclosure allows H&R Block to release the applicant’s tax return data collected during the application to the bank to evaluate their eligibility for the Emerald Advance line of credit (if applicable).
Pathward Bank Privacy Notice Explains how the bank shares the applicant’s information and how they can limit that sharing if they choose.
Pay down to zero
This process will include explaining to the applicant their obligation to pay down their Emerald Advance to a zero balance by February 15th along with how to draw money against their Emerald Advance line of credit.
Annual Paydown to Zero
Paydown to zero is due on February 15 each year. If the applicant indicates they wish to return to H&R Block for income tax preparation
applicants understand that, while the paydown to zero date is February 15, they are still responsible for making their minimum monthly payment as explained during the application process.
Maintaining Secure Line of Credit
Maintaining Savings-Secured
Make timely minimum monthly payments on any outstanding balance Make timely minimum monthly payments on any outstanding balance
Paydown to zero by February 15 9% APR
Determine credit limit and establish and deposit equal funds to an Emerald Savings account by April 1.
Script
You could get a line of credit up to $1,000
&R Block Emerald Advance℠ is subject to underwriting approval with available credit limits between $350-$1,000. Fees apply. Offered at participating locations. Loan Amounts Up to $3,500 ($250, $500, $750, $1,250, and $3,500)
