Edward Jones: Investment Firm, But Do They Offer Loans?

Edward Jones is a financial services firm that provides investment solutions and advisory services to clients in the United States and Canada. The company offers a range of services, including retirement accounts, savings plans, estate planning, and trust services, as well as banking options such as credit and debit cards. In addition to these services, Edward Jones also provides loans in the form of a Personal Line of Credit and a Reserve Line of Credit. These loan options allow clients to borrow funds using their eligible investment accounts as collateral. The Personal Line of Credit is a margin loan with a competitive interest rate, while the Reserve Line of Credit is offered through Edward Jones, SBL, LLC, a non-bank lender. Edward Jones also offers a Business Plus Mastercard with features such as a 0% introductory APR on balance transfers and a rewards program.

Personal Line of Credit

Edward Jones provides a range of services to help clients manage their cash and credit needs. One of these services is the Edward Jones Personal Line of Credit.

The Personal Line of Credit is a margin loan taken against the value of the margin-eligible investments in your account. This allows you to borrow against your investment portfolio. Your investments continue to work towards your financial goals while serving as collateral for the credit.

The Personal Line of Credit is flexible and convenient, allowing you to access credit anytime by using a "Write Your Own Loan" check or by calling your financial advisor. There is no credit check or loan committee. The interest rate is based on the size of the relationship you have with Edward Jones, so the more assets you have under their care, the lower your relative interest rate.

It is important to note that borrowing against securities has its risks and is not appropriate for everyone. There is a possibility of losing more funds than deposited in the margin account. If the value of your collateral declines, you may be required to deposit additional funds or securities, or your securities may be sold to meet the margin call without notice.

To determine if the Personal Line of Credit is the right solution for your borrowing needs, it is recommended to consult with an Edward Jones financial advisor. They can provide complimentary consultations and help you understand the associated terms, conditions, risks, and costs.

Reserve Line of Credit

The Reserve Line of Credit is a loan option offered by Edward Jones, SBL, LLC, a non-bank lender and affiliate of Edward Jones. It is available in most states, but it is important to check with a financial advisor to confirm availability in your state.

The Reserve Line of Credit allows clients to borrow funds using securities and assets within eligible accounts. This option helps retain ownership of investments and potentially avoid the tax consequences of selling them. It is important to note that there are risks involved with borrowing against securities, and it may not be suitable for everyone.

The availability of the loan depends on the lender's authorisation to extend credit in the client's state of residence, the value of the assets, including securities held in the pledged accounts, and the eligibility guidelines set forth in the Reserve Line of Credit Agreement. The interest rate is variable, fluctuating with the base rate, which is either 4.00% or the current prime rate, whichever is higher.

To apply for the Reserve Line of Credit, clients must first consult their financial advisor to determine if this loan option is appropriate for their needs. If it is, a loan application is completed and submitted for underwriting review.

Business Plus Mastercard

The Edward Jones Business Plus Mastercard® is a credit card for business owners. It has no annual fee and offers a range of benefits, including:

• Loyalty Points®: Cardholders can earn Loyalty Points® on eligible net purchases, which can be redeemed for airfare, cash deposits into an Edward Jones account, gift certificates, merchandise, or cash back. New cardholders can earn 15,000 bonus Loyalty Points® by spending $1,000 in eligible net purchases within the first 90 days of opening their account. These bonus points are equivalent to a $150 cash deposit into an Edward Jones investment account.
• 0% Introductory APR: The Business Plus Mastercard offers an introductory APR of 0% for balance transfers made within the first 60 days of account opening, valid for the first 12 billing cycles.
• Travel Benefits: Cardholders and their eligible dependents are covered by Worldwide Travel Accident Insurance at no extra cost when the entire cost of their travel fares on common carriers (train, plane, bus, or ship) is charged to the card. Additional travel benefits include special business discounts, Mastercard golf privileges, and Priceless® experiences.
• Security: The card provides added security through Zero Fraud Liability, Enhanced ID Theft Protection, and emergency services.
• Online Tools: Edward Jones offers free online tools such as Spend Analysis and Mobile Receipt Management to help cardholders track their business expenses.
• Auto Rental Coverage: The card offers auto rental coverage, as detailed in the Mastercard Guide to Benefits.

To apply for the Edward Jones Business Plus Mastercard, existing clients can log in to Online Access and visit the Loans & Credit section within the Accounts tab.

In addition to the Business Plus Mastercard, Edward Jones also offers other credit card options, such as the World Plus Mastercard and the World Mastercard, as well as various lines of credit, including the Personal Line of Credit and the Reserve Line of Credit.

Home financing solutions

Edward Jones is a financial services firm that provides investment solutions and advisory services to clients in the United States and Canada. The company offers a comprehensive suite of services, including home financing solutions, to help clients achieve their long-term financial goals.

One of the home financing solutions offered by Edward Jones is the Personal Line of Credit. This is a margin loan that allows clients to borrow against the value of their margin-eligible investments. The Personal Line of Credit offers competitive rates, convenience, and confidentiality. Clients can access the line of credit anytime and use it for various purposes, including short-term financing for a home loan.

Another option is the Reserve Line of Credit, offered by Edward Jones, SBL, LLC, a non-bank lender. This line of credit is available in most states and allows clients to borrow funds using securities and assets within eligible accounts. The Reserve Line of Credit can help clients retain ownership of their investments and potentially avoid tax consequences associated with selling those investments. However, it is important to note that borrowing against securities has its risks and may not be suitable for everyone.

In addition to these lines of credit, Edward Jones also provides personalized financial advice and investment solutions to help clients with their home financing needs. The company's business model emphasizes personal relationships and customized advice, ensuring that financial plans are tailored to the individual needs and aspirations of each client.

Overall, Edward Jones offers a range of home financing solutions, including lines of credit and investment strategies, to help clients achieve their financial goals and make their dream of homeownership a reality.

Borrowing against securities

Edward Jones offers a Personal Line of Credit, which is a margin loan taken against the value of the margin-eligible investments in your account. This allows you to borrow against your investment portfolio. The Personal Line of Credit is offered by Edward D. Jones & Co., L.P. ("Edward Jones"), which is a SEC-dually registered broker-dealer and investment advisor, not a bank.

The Reserve Line of Credit is offered by Edward Jones, SBL, LLC, a non-bank affiliate of Edward Jones. This is an uncommitted demand line of credit secured by eligible securities in select investment accounts. The availability of the Reserve Line depends on whether the lender is authorised to extend credit in the state where you reside, the value of the assets, including securities held in the pledged accounts, and the eligibility guidelines set forth in the Reserve Line of Credit Agreement.

With the Personal Line of Credit, your investments can continue to help you work toward your goals while serving as a source of collateral for credit under certain conditions. Edward Jones offers competitive rates that are based on your eligible assets under their care. You can access the line of credit at any time and there is no credit check or loan committee. The repayment schedule is flexible, but there is always the requirement to pay back the loan, including interest.

It is important to understand the risks and costs associated with borrowing against securities. Borrowing against securities is not appropriate for everyone and there is a chance you could lose more funds than you deposit in your account. If the value of your collateral declines, you may be required to deposit additional cash or securities, or your securities may be sold to meet the margin call without notice. The firm can increase its maintenance margin requirements at any time and/or not grant an extension of time on a margin call. Interest will begin to accrue from the date of the loan and be charged to your account.

Frequently asked questions