Credit repair agencies do not handle these. Ī line of credit sweep is an arrangement between a bank and a customer, much like any other account service. This is done to pay down debts from idle funds automatically.

The latter refers to an automatic transfer of excess checking account funds into a line of credit. A credit sweep is not the same as a line of credit sweep. credit sweepīefore going further, it is essential to understand a key terminology difference. These actions are prohibited by the Credit Repair Organizations Act and are clear indications that such a company is not on your side. If you approach a credit repair company and they demand upfront payment or seem to be withholding information, do not engage with them.

If some items are not fraudulent, a credit sweep is illegal. You also must be able to prove identity theft with a police report. As mentioned, it only works if all the items on your credit report are fraudulent, which is rarely the case. Ī credit sweep is not a wise strategy for credit repair. Often, these companies charge high fees for this service.

Your legal rights with credit repair servicesĬredit sweep programs typically promote the ability to remove negative items on your credit report by disputing every single item on your credit report.

If your credit needs a clean-up, you can dispute individual issues and fix errors on your credit report yourself, for free. This can save you thousands of dollars in fees. It’s important to note that any action performed by a credit repair company can be done on your own. While credit card fraud statistics show that fraud cases continue to increase, a credit sweep is not the answer. However, unless all items on your credit report are fraudulent (which is improbable), a credit sweep is illegal. The sweep will claim the items are fraudulent, usually as a result of identity theft. If your checking account has excess funds, the system pays outstanding loan balance (if any) first and invests any remaining funds into the Investment Sweep option you selected.A credit sweep refers to an action taken by a credit repair company that claims to “sweep” your credit report and dispute all negative items at one time. If the account has a deficit balance, the system draws funds from your investment balance (if any) first, and from an established line of credit, if necessary. At the end of each day, we analyze your checking account to see if you require additional funds to cover disbursements or hold idle or excess balances.

Combination Sweep - Combines Investment Sweep and Loan Sweep services to help you maximize investment earnings and minimize interest expense.

At the end of each day, your checking account is analyzed to determine whether you require funds to pay disbursements or whether the line of credit can be paid back with excess funds in the account. Payments to the line of credit have no minimums or increments.

Loan Sweep - Ensures that funds are borrowed from a Regions Line of Credit only when necessary, and that the line of credit is paid down as soon as funds are available to reduce your interest expense.

Regions Working Capital Sweep and Money Market Mutual Fund Sweep.

If funds are drawn below the target balance, the funds are matured from investments and redeposited to the checking account.

Investment Sweep - Transfers checking account balances in excess of your specified target balance into an investment instrument that earns a competitive interest rate.

Regions Treasury Management offers the following Sweep Services 1 to help you maximize investment earnings, minimize idle balances, and reduce interest expense so you can improve cash flow management.

Credit sweep services