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

As a current Citi credit card customer, you might have gotten mail or notices you have a fascinating funding option — called a Flex Loan — built into your bank card account.

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

But, there are times each time a Citi Flex Loan could be a less expensive solution to either:

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

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 currently provides standard unsecured loans to borrowers.)

They’re more of a hybrid between signature loans and old-fashioned bank card credit restrictions.

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

Unlike conventional unsecured loans, where you intend to make an application that is formal Citi Flex Loans work within your current charge card plans.

As an example, you may have a Flex Loan offer of $5,000 – 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 don’t need certainly to make an application for a Flex Loan at all.

If you’re a current Citi charge card client, the offer are going to be presented in your online declaration. After that you can opt for the Flex Loan supply if it actively works to your benefit, or ignore entirely if it does not.

And simply as being a Flex Loan does not boost your current bank card credit limitation, it does not reduce it either.

In the event that you don’t use the Flex Loan, the total borrowing limit is designed for your bank card.

How It Functions

Flex Loans offer you complete control of the mortgage procedure.

As described above, a specific level of your existing borrowing limit are going to be designed for a Flex Loan. Then you’re able to elect to modify the mortgage to suit your needs that are own.

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

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

That rate of interest will likely to be given by Citi in advance, so you’ll should just select the mortgage amount – up to the utmost allowed – together with term that best produces a payment that is monthly 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, 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 in your charge card, by having a payment of $60, your brand-new re re payment will likely to be $166, with a blended 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 with this loan system is exactly what makes it appealing.

For a lump sum loan

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

Moreover it gets the benefit there is no application cost for every single Flex Loan you are taking.

As soon as you access a Flex Loan – other compared to a purchase – funds is utilized in your money in less than 1 or 2 company times. You will also provide the possibility to get a check by mail.

For the purchase

Another function is you can often make use of Flex Loans in order to make a purchase that is eligible.

As an example, 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 capacity to quickly payday loans California determine how you intend to spend the purchase down.

Who is able to access this funding choice?

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

Nevertheless, they’re only open to select clients.

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

What’s more, also when you have a Flex Loan supply, it would likely maybe not be described as a permanent function of one’s bank card. Citi will make the offer accessible to you “from time for you time”.