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

As a current Citi charge card customer, you have gotten mail or notices which you have actually a financing that is interesting — called a Flex Loan — built to your charge card account.

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You may not utilize this choice for a basis that is regular.

But, there are occasions whenever a Citi Flex Loan could be a less expensive solution to either:

• be sure acquisitions or
• better handle your credit balances to pay for them off faster.

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

What exactly is Citi Flex Loan?

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

They’re more of a hybrid between signature loans and conventional charge card credit restrictions.

However for practical purposes, they are able to work similar to an individual loan, however with a faster process that is much.

Unlike conventional unsecured loans, for which you intend to make an official application, Citi Flex Loans work within your current bank card plans.

As an example, for those who have a charge card with all the current borrowing limit of $8,000, you might have a Flex Loan offer of $5,000 – and on occasion even the complete level of your total borrowing limit.

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

If you’re a preexisting Citi charge card client, the offer will undoubtedly be presented on your own online declaration. Then you’re able to opt for the Flex Loan supply if it works to your benefit, or ignore totally if it does not.

And merely as being a Flex Loan does not boost your credit that is existing card 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 Works

Flex Loans provide you with complete control of the mortgage procedure.

As described above, a particular quantity of your current borrowing limit is going to be designed for a Flex Loan. After that you can decide to personalize the mortgage to suit your very own requirements.

An illustration predicated on various loan quantities and loan terms, however with an interest that is single for every single:

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

That rate of interest is likely to be given by Citi in advance, so you’ll should just select the mortgage quantity – up to the utmost allowed – as well as 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 that is monthly of106. In the event that you already owe $3,000 on the bank card, by having a payment per month of $60, your brand-new re re re payment will likely be $166, with a mixed balance of $8,000.

Then be reduced to $2,000 if your total credit card credit limit is $10,000, your available credit will.

The flexibleness of the loan system is the reason why it appealing.

For the lump sum loan

It lets you access element of your personal line of credit like a term loan with a hard and fast interest, payment per month, and term that is limited.

In addition has got the benefit there is no application cost for every single Flex Loan you are taking.

When you access a Flex Loan – other compared to a purchase – funds may be used in your money in as low as 1 or 2 company days. However you shall likewise have the choice to get a check by mail.

For a purchase

Another feature is you can sometimes use Flex Loans to help make a purchase that is eligible.

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 supply you with the capacity 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 citi credit that is existing card.

Nevertheless, they’re just open to choose clients.

Also in the event that you’ve possessed a Citi take into account years, it is possible no Flex Loan supply would be provided.

What’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 “from time for you time”.