Citi Flex Loan Review: Pay Less Interest By Borrowing Against Your Bank Card

Citi Flex Loan Review: Pay Less Interest By Borrowing Against Your Bank Card

As an existing Citi charge card consumer, you could have gotten mail or notices you have actually a financing that is interesting — called a Flex Loan — built to your bank card account.

You may not utilize this choice on a daily basis.

But, there are occasions whenever a Citi Flex Loan can be a cheaper option to either:

  • Make purchases that are certain
  • better handle your credit balances to pay for them down faster.

Understand how it really works to see in mind for future borrowing on your Citi credit card if you should keep it

What’s Citi Flex Loan?

Citi Flex Loans aren’t unsecured loans within the sense that is strict. (Citi currently provides standard loans that are personal borrowers.)

They’re a lot more of a hybrid between signature loans and conventional bank card credit limitations.

But also for practical purposes, they are able to work just like a individual loan, however with a considerably faster process.

Unlike old-fashioned signature loans, in which you have to make an application that is formal Citi Flex Loans work within your existing bank card plans.

As an example, for those who have a charge card because of the present borrowing limit of $8,000, you could have a Flex Loan offer of $5,000 – and sometimes even the complete quantity of your total borrowing limit.

You don’t need certainly to make an application for a Flex Loan at all.

If you’re a current Citi charge card consumer, the offer is likely to be presented on your own online declaration. After that you can go for the Flex Loan provision if it actively works to your benefit, or ignore completely if it does not.

And merely as a Flex Loan does not boost your existing bank card credit limitation, it doesn’t reduce it either.

The full credit limit will be available for your credit card if you don’t take advantage of the Flex Loan.

How It Functions

Flex Loans offer you control that is complete the mortgage procedure.

As described above, a certain level of your current borrowing limit may be designed for a Flex Loan. Then you can elect to personalize the mortgage to suit your needs that are own.

A good example according to various loan amounts and loan terms, however with an interest that is single for every:

Samples of monthly obligations on Citi Flex Loans (according to 9.99per cent APR)

That interest will likely be supplied by Citi in advance, so you’ll should just select the mortgage quantity – up to the utmost allowed – additionally the term that best produces a month-to-month repayment that is wonderful for you.

In the event that you curently have a superb stability against your borrowing limit, the latest loan will express an extra payment.

As an example, let’s say you are taking a Flex Loan of $5,000 for 60 months, having a payment of $106. In the event that you already owe $3,000 on the bank card, by having a payment per month of $60, your re re payment would be $166, with a combined balance of $8,000.

Should your total bank card borrowing limit is $10,000, your available credit will likely then be paid off to $2,000.

The flexibleness of the loan system is really what makes it appealing.

For a lump sum loan

It lets you access element of your line of credit like a phrase loan with a set rate of interest, payment, and restricted term.

In addition it gets the benefit that there surely is no application cost for every single Flex Loan you are taking.

When you access a Flex Loan – other compared to a purchase – funds could be utilized in your money in as low as one to two company days. However you shall also provide the possibility to get a check by mail.

For a purchase

Another function is you are able to often utilize Flex Loans in order to make a qualified purchase.

As an example, you may be able to use a Flex Loan to make the purchase at the register if you are purchasing computer equipment for $2,000.

This may provide you with the capability to quickly determine how you need to spend the purchase down.

Who are able to access this funding choice?

Flex Loans can be obtained just with a current citi credit card.

But, they’re just offered to pick clients.

Also it’s possible no Flex Loan provision will be offered if you’ve had a Citi account for years.

What’s more, also when you have a Flex Loan supply, it could maybe not be a permanent function of one’s charge card. Citi will make the offer open to you “from time for you time”.

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