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

As a current Citi charge card consumer, you have gotten mail or notices you have actually a fascinating funding option — known as a Flex Loan — built into your bank card account.

You may not utilize this choice for a daily basis.

But, solutions each time a Citi Flex Loan might be a less expensive solution to either:

  • make sure acquisitions or
  • better handle your credit balances to cover them down faster.

Find out how it really works to see should you ensure that is stays at heart for future borrowing on the Citi bank card.

What exactly is 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.

However for practical purposes, they could work similar to an individual loan, however with a faster process.

Unlike conventional unsecured loans, in which you need certainly to make a formal application, Citi Flex Loans work within your current charge card arrangements.

For instance, for those who have credit cards aided by the present borrowing limit of $8,000, you could have a Flex Loan offer of $5,000 – and sometimes even the entire level of your total borrowing limit.

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

The offer will be presented on your online statement if you’re an existing Citi credit card customer. After that you can go for the Flex Loan supply if it actively works to your benefit, or ignore totally if it does not.

And simply as being a Flex Loan does not enhance your current bank card credit restriction, it does not 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 provide you with complete control of the mortgage process.

As described above, a particular level of your current borrowing limit should be readily available for a Flex Loan. Then you’re able to elect to personalize the mortgage to suit your own requirements.

A good example according to various loan quantities and loan terms, however with a solitary rate of interest for every single:

Types of monthly premiums on Citi Flex Loans (predicated on 9.99per cent APR)

That interest will likely to be given by Citi in advance, so you’ll should just select the mortgage quantity – up to the utmost allowed – while the term that best produces a payment that is monthly is wonderful 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, let’s say you are taking a Flex Loan of $5,000 for 60 months, by having a payment of $106. In the event that you already owe $3,000 on the charge card, with a payment that is monthly of60, your re re re payment is supposed to be $166, with a blended balance of $8,000.

In the event your total bank card borrowing limit is $10,000, your available credit will likely then be paid down to $2,000.

The flexibleness with this loan system is exactly what makes it appealing.

For a lump sum loan

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

It gets the benefit that there’s no application charge for every single Flex Loan you are taking.

As soon as 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 times. However you will have the choice to get a check by mail.

For the purchase

Another function is it is possible to often utilize Flex Loans in order to make a purchase that is eligible.

For instance, if you should be buying computer gear for $2,000, maybe you are able to utilize a Flex Loan to help make the purchase during the register.

This may supply you with the capability to decide how quickly you wish to spend the acquisition down.

Who are able to access this funding option?

Flex Loans can be found just with A citi credit that is existing card.

Nevertheless, they’re just accessible to pick clients.

Even in the event that you’ve possessed a Citi account fully for years, it is feasible no Flex Loan supply may be provided.

What’s more, also when you have a Flex Loan supply, may possibly not be described as a permanent function of the charge card. Citi can make the offer open to you “from time and energy to time”.