/
5 minute read
August 4, 2022

About Credit Products

Hidden

A credit product is a collection of characteristics, such as the credit line range and required fees or APRs, that determines the behaviors and attributes of its associated offers and credit accounts.

On the Marqeta platform, credit products are represented by the products resource. For the complete endpoint reference, see Credit Products.

At the end of this guide, you should understand:

  • How credit products affect their associated offers or accounts.

  • Whether to create an offer or account (based on the credit product).

  • How to create a credit product on the Marqeta platform.

Creating associated credit accounts

A credit product functions like a template for creating accounts. Many characteristics of a credit product can later be defined in its associated accounts. For example, you can specify whether a product has a return payment fee, but the actual fee value is defined when creating an account from that product.

The characteristics of a credit product answer the following questions when creating an account:

  • What is the maximum and minimum credit limit that can be applied?

  • What is the interest method used?

  • What required fees need to be defined?

  • What is the billing cycle day and payment due day?

  • When determining the minimum payment on a statement, what is the minimum payment percentage or minimum payment amount?

Product characteristics

The following characteristics belong to credit products. Certain characteristics determine the behavior and attributes of its associated credit offers or accounts, such as the credit limit range, important key days, interest, fees, and rewards.

Status

Credit products can have one of the following statuses:

  • DRAFT – The credit product is in the process of being created.

  • PENDING_APPROVAL – The credit product has been created and is awaiting approval.

  • SENT_FOR_REVISION – The credit product has been returned for revision.

  • ACTIVE – The credit product is active and you can create offers from it.

  • REJECTED – The credit product has been rejected and cannot be worked on. Its status cannot be changed.

  • ARCHIVED – The previously active credit product has been archived.

Credit limit range

A credit product’s credit limit range determines the minimum and maximum credit limit you can define for its associated credit accounts.

Usages

You can define how a credit account is used and what types of balances are permitted on the account.

Config

You can configure the billing cycle day, payment due day, and fees. Any configurations made on a product will be passed to its associated credit accounts, where its properties can be further defined.

Key days

The following key days in a credit product determine the key days in its associated credit accounts:

  • The billing cycle day is the day of month a new billing cycle begins. At the end of a billing cycle, you bill the account holder for any unpaid purchases and fees incurred during the billing cycle.
    The billing cycle day for a credit product determines the billing cycle day for its associated credit accounts.

  • The payment due day is the day of month that payment for the previous billing cycle is due.

Minimum payments

A credit product’s minimum payment amount can be a flat amount or a percentage.

  • A minimum payment flat amount is the minimum flat amount to be paid on the payment due day.

  • A minimum payment percentage is the minimum payment as a straight percentage of the total statement balance at the end of a billing period, to be paid on the payment due day.

The minimum payment amount is either the minimum payment flat amount or the minimum payment percentage, whichever is greater. If at the end of a billing period, the total statement balance is less than the minimum payment flat amount, the minimum payment amount is equal to the total statement balance.

Join our developer newsletter