Q: How does Branch determine my advance limit? And why would that decrease?
There are a few different things that can impact your advance limit. First and foremost, we use your past direct deposit amounts to calculate your advance limits. At first, you will only qualify for a small percentage of your average direct deposits, but that will continue to increase as you have successful paybacks in the system. Second, we look at your spending throughout a pay period. If you leave a cushion of funds in your account on pay day, and you spend less than you earn, then you should see your advance limits continue to increase.
Sometimes, advance limits decrease. This can happen for a few reasons:
- Your most recent direct deposit amounts decreased
- You spend a large percentage of your paycheck on the day you get paid
- You have paybacks in a "pending" status. As soon as this completes, you should see your advance limits increase
- You were late on re-payment
- You do not have enough history with us