LemFi credit works as a revolving line of credit, with purchases automatically split into 12 monthly installments, often used for "Send Now, Pay Later" remittances. Repayments are structured with daily interest calculations, allowing for interest savings on early repayments.
What this means
- Purchases are automatically split over 12 months, and repayments are deducted automatically from your linked bank account via Open Banking.
- When using "Send Now, Pay Later," you send funds immediately and create a deferred payment obligation that is paid back in installments.
- Standard interest rates apply to the credit and will be displayed on the savings account page.
- You can repay earlier than scheduled to reduce the total interest paid, as interest is calculated daily.
- Users can set a repayment date that fits their schedule.
- Late or missed payments are reported to credit reference agencies, which can negatively affect your credit score.
What you should do
You can:
- set up automatic payments (Autopay)
- make manual repayments
- Ensure funds are available in your linked account for automatic repayments to avoid issues.
What to expect
- Paying early can reduce the interest you pay
- Missing payments may impact your credit score
Next steps
To avoid issues, make sure you repay on time.