Citi Flex Loan Review: Pay Less Interest By Borrowing Against Your Bank Card
As a current Citi bank card consumer, you may possibly have gotten mail or notices which you have actually a financing that is interesting — known as a Flex Loan — built to your charge card account.
You’ll not utilize this choice for a basis that is regular.
But, solutions whenever a Citi Flex Loan are a cheaper option to either:
- Make purchases that are certain
- better handle your credit balances to cover them off faster.
Understand how it really works to see should you ensure that it stays at heart for future borrowing on the Citi bank card.
What exactly is Citi Flex Loan?
Citi Flex Loans arenвЂ™t unsecured loans within the strict feeling. (Citi currently provides standard signature loans to borrowers.)
TheyвЂ™re a lot more of a hybrid between signature loans and conventional charge card credit limitations.
However for practical purposes, they are able to work just like an individual loan, however with a even faster process.
Unlike conventional unsecured loans, for which you intend to make an application that is formal Citi Flex Loans work within your current bank card arrangements.
For instance, you may have a Flex Loan offer of $5,000 вЂ“ or even the entire amount of your total credit limit if you have a credit card with the current credit limit of $8,000.
You donвЂ™t need certainly to submit an application for a Flex Loan at all.
The offer will be presented on your online statement if youвЂ™re an existing Citi credit card customer. After that you can go for the Flex Loan supply if it works to your benefit, or ignore totally if it does not.
And simply as being a Flex Loan does not raise your current charge card credit restriction, it does not reduce it either.
The full credit limit will be available for your credit card if you donвЂ™t take advantage of the Flex Loan.
How It Functions
Flex Loans provide you with control that is complete the mortgage procedure.
As described above, a specific level of your current borrowing limit will likely be designed for a Flex Loan. Then you’re able to decide to modify the mortgage to suit your very own needs.
A good example centered on various loan quantities and loan terms, however with a solitary interest for every single:
Types of monthly obligations on Citi Flex Loans (predicated on 9.99per cent APR)
That interest will soon be given by Citi in advance, so youвЂ™ll should just select the mortgage quantity вЂ“ up to the utmost allowed вЂ“ while the term that best produces a month-to-month repayment that is useful for you.
The new loan will represent an additional monthly payment if you already have an outstanding balance against your credit limit.
As an example, letвЂ™s say you are taking a Flex Loan of $5,000 for 60 months, having a payment that is monthly of106. In the event that you already owe $3,000 in your charge card, by having a payment per month of $60, your payment is going to be $166, with a blended balance of $8,000.
In case your total bank card borrowing limit is $10,000, your available credit will likely then be paid off to $2,000.
The flexibleness for this loan system is exactly what makes it appealing.
For a lump sum loan
It lets you access element of your personal line of credit like a term loan with a hard and fast rate of interest, payment per month, and term that is limited.
It has got the benefit there is no application cost for every Flex Loan you are taking.
When you access a Flex Loan вЂ“ other compared to a purchase вЂ“ funds may be utilized in your bank account in less than 1 or 2 company times. However you shall also provide the choice to get a check by mail.
For a purchase
Another function is you can often use Flex Loans which will make a purchase that is eligible.
As an example, if you’re buying computer gear for $2,000, maybe you are able to use a Flex Loan to help make the purchase during the register.
This can supply you with the capacity to quickly determine how you need to spend the acquisition down.
Who is able to access this funding option?
Flex Loans can be obtained just with a current citi credit card.
Nonetheless, theyвЂ™re just open to choose clients.
Also itвЂ™s possible no Flex Loan provision will be offered if youвЂ™ve had a Citi account for years.
WhatвЂ™s more, also it may not be a permanent feature of your credit card if you have a Flex Loan provision. Citi could make the offer open to you вЂњfrom time for you timeвЂќ.