Most likely the two biggest benefits of the Citi Flex Loan are:

1. It could provide a lesser rate of interest than your credit card that is regular APR.
2. It will probably provide you with the capacity to maintain at minimum component of the outstanding card stability being a fixed-rate term loan.

The 2nd benefit may function as the biggest.

A payment structure that is fixed

Among the disadvantages that are major charge cards is the revolving nature. You may carry a balance – forever unless you have the discipline to pay your balance off in full each month.

Utilizing the Flex Loan, you possibly can make a purchase, and restrict the word to as low as year.

That may force you to definitely pay back at minimum component of one’s stability on a hard and fast schedule, in the place of allowing it to move ahead for decades.

No origination costs or credit check

An additional benefit of a Citi Flex Loan is the fact that there are not any origination charges.

A full $600 for the fee for example, if you take a $10,000 personal loan, with a 6% origination fee, you’ll pay.

Not just that, however the origination charge will be deducted from your own loan quantity.

In place of getting $10,000, you’ll receive just $9,400. That could never be quite adequate for many that you would like related to the loan that is personal.

Additionally, there are no application costs and no credit check included once you access your Citi Flex Loan.

Since you’re currently a Citi consumer, with an approved credit limit, you can just access the mortgage once you decide to.

Just Exactly Just How Citi Flex Loan Might Not Work With Your

Though Citi Flex Loans adds a extra choice to your bank card account, you can find restrictions you should be alert to.

Loan size may be restricted

The minimal loan quantity is $500.

The utmost loan quantity is the borrowing limit (unless the Flex Loan optimum happens to be set at a lower life expectancy degree by the lender).

The Citi Flex Loan can’t be used to your overall outstanding stability due, maybe so that they can get a lesser rate of interest or set the payoff term that is definite.

Any balance that is outstanding more than one of your cards will have to be compensated based on the initial terms.

The rate of interest things probably the most

It may be higher than what you would pay for a typical personal loan, especially when you compare it to the top online personal loans available though it may be lower than your regular Citi credit card rate.

You are probably planning to spend less in interest in the event that you simply sent applications for a regular loan that is personal.

perhaps Not really a financing option that is reliable

The Flex Loan will not express the expansion of extra credit.

If the bank card limitation is $10,000, and you’re provided a Flex Loan supply, it shall maybe maybe maybe not raise the number of the borrowing limit.

It simply provides you with the capability to categorize several of your outstanding balance as a fixed-rate loan, in the place of revolving debt.

The Flex Loan can be available on the account fully for an occasion, then be withdrawn.

Citi has not yet suggested so it will be a feature that is permanent of account, but alternatively the one that should be offered “from time and energy to time”.

That means it is a lot more of a marketing offer than a continuing advantage, just like the means creditors periodically give you a temporarily low price on brand brand new acquisitions and transfers of balance.

Summary

A Citi Flex Loan offers you the capacity to access your borrowing limit under more managed circumstances.

For those who have an important purchase or a need for funds for a short-term foundation, it is possible to access the Flex Loan percentage of your borrowing limit, and repay it in as low as year.

In many instances, the attention price regarding the Flex Loan also needs to be less than your regular charge card price.

By doing so, it will probably be a limited-use feature in really certain situations. But exactly it won’t be nearly as flexible because it eliminates the revolving aspect of credit cards.

Nevertheless, it provides Citi charge card clients the capacity to have better control of at the least a part of the credit card that is outstanding stability.

Ask a concern

MyBankTracker

Appreciate that you have provided your experience with the Citi Flex Loan. Hopefully, it will help with clients who will be considering this loan product that is new.

rellwood

That flex loan is susceptible to the apr hierarchy. Meaning, you use a flex loan on the remaining available balance, whatever over the minimum payments (your current flex loan payment, plus the minimum on the balance transfer) goes to the flex loan if you already have a lower apr balance transfer on that card, and.

Should your balance transfer is for 1 . 5 years, along with your flex loan is actually for 36months, and you also make a lot more than the minimum re payments, thinking you will have repaid that transfer time, you’re going to be set for a rude awakening whenever the period is up. You can expect to simply be capable of making payments that are minimum it until that flex loan is paid in complete.

kelela37clch

Extremely article that is informative many thanks a great deal!

rellwood

Be cautious aided by the print that is fine these “loans” these are typically yet another stability transfer. They are not that loan into the feeling that the re re payment is similar each and they don’t affect anything you might already have on your account month. These are generally yet another form of a stability transfer.

We believed you had or spent on your card would be treated as if the “loan” wasn’t there that they were treated like a separate entity, and whatever. They also put up the web site to demonstrate the “Flex Loan” as an area that is separate. Ensuring you knew it was that loan for XXX amount of cash with a group range repayments and a group rate of interest, after which it can state whatever your payment could be. Then it suggested just how much ended up being kept for you “loan” and just how numerous navigate here payments you’d available.

Though the declaration i acquired that month indicated that in the event that flex loan apr had been a lot more than other things that was from the card, then any such thing throughout the minimum would get towards that loan. Therefore, it’s not an “additional” re re payment within the minimum you need to have. It’s being compensated during the exact same price as your present purchases but it’s apr should determine if it gets what exactly is on the minimum or perhaps not. To ensure wonderful 10.99per cent interest 36 thirty days stability transfer I’d going just isn’t getting any thing more compared to the minimal payment per month because that “loan” is taking whatever over their “monthly re re re payment” is as well as the minimum as a result of the transfer.

Had we understood that I happened to be likely to be paying it back once again in the exact same price as a regular stability transfer, aided by the greater apr. price using over everything above the minimum re re re re payments, I would personallynot have taken it. Not a way.

BTW, NEVER have over limitation on the charge card for just about any explanation. The payment period back at my card begins regarding the seventeenth associated with the month, and I also took away that “loan” regarding the sixteenth, the mortgage quantity brought my borrowing limit into the maximum, nevertheless the following day the attention charges from the current stability transfer I’d over by $22.50 on it came due and pushed it. This is in Might. The June statement arrived and it had a large notice saying that my “flex Plan” aka my “Flex Loan” rate of interest will be going as much as 24% in addition to total level of re payments offered to me personally would get from 36 to 30 launching in August 28. Given that i believe from it, we suspect that my stability transfer we already had is roofed into the “Flex Arrange” yet again 10.99% price goes to 24%.