Possibly the two biggest features of the Citi Flex Loan are:
- It would likely provide a lesser interest rate than your credit card that is regular APR.
- It’s going to supply you with the capability to keep at part that is least of one’s outstanding card stability being a fixed-rate term loan.
The 2nd benefit may function as biggest.
A fixed repayment framework
One of several major drawbacks with bank 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.
Because of 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 part that is least of the stability on a set schedule, instead of allowing it to move ahead for a long time.
No origination costs or credit check
An additional benefit of a Citi Flex Loan is the fact that there are not any origination costs.
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 only this, however the origination charge will be deducted from your own loan quantity.
Rather than getting $10,000, you’ll receive simply $9,400. That will not be quite adequate for several that you would like related to the loan that is personal.
There’s also no application charges with no credit check included once you access your Citi Flex Loan.
You can simply access the loan when you choose to since you’re already a Citi customer, with an approved credit limit.
Just How Citi Flex Loan May Well Not Work With Your
Though Citi Flex Loans adds an option that is additional your bank card account, you can find limits you have to be conscious of.
Loan size might 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 diminished degree because of the lender).
The Citi Flex Loan can’t be reproduced to your present outstanding stability due, maybe so as to get a diminished rate of interest or set the payoff term that is definite.
Any outstanding stability on a number of of one’s cards will have to be compensated based on the initial terms.
The rate of interest issues probably the most
Though it might be less than your regular Citi bank card price, it might be greater than what you should purchase a typical personal bank loan, particularly when you compare it towards the top online individual loans available.
You are most likely planning to spend less in interest in the event that you simply sent applications for a typical personal bank loan.
perhaps maybe Not a financing option that is reliable
The Flex Loan doesn’t express the expansion of extra credit.
If for example the bank card restriction is $10,000, and you’re provided a Flex Loan supply, it will perhaps perhaps not boost the quantity of the borrowing limit.
It simply offers you the capacity to categorize a number of your outstanding stability as being a loan that is fixed-rate in place of revolving debt.
The Flex Loan could be available in your account fully for a period, then be withdrawn.
Citi have not indicated it will be considered a feature that is permanent of account, but instead one which is going to be offered “from time and energy to time”.
Which makes it a lot more of an offer that is promotional a continuous advantage, much like the means creditors sometimes provide a temporarily low price on brand brand brand new acquisitions and transfers of balance.
Conclusion
A Citi Flex Loan provides you with the capability to access your borrowing limit under more controlled circumstances.
You can access the Flex Loan portion of your credit limit, and pay it off in as little as 12 months if you have a major purchase or a need for funds on a short-term basis.
More often than not, the attention price in the Flex Loan also needs to be less than your regular bank card price.
By doing so, it’s going to work as a limited-use feature in extremely particular situations. But correctly given that it eliminates the revolving aspect of charge cards, it won’t be nearly as flexible.
Nevertheless, it provides Citi charge card clients the capacity to have better control of at the least a percentage of these outstanding bank card stability.
Ask a Question
MyBankTracker
Appreciate that you have provided the Citi Flex Loan to your experience. Ideally, it helps with clients who will be considering this loan product that is new.
rellwood
That flex loan is susceptible to the apr hierarchy. Meaning, if you have a lesser apr balance transfer on that card, and also you work with a flex loan in the staying available stability, whatever over the minimum payments (your present flex loan repayment, and the minimum in the stability transfer) would go to the flex loan.
In the event the stability transfer is for 18 months, along with your flex loan is for 36months, and you also make significantly more than the minimum re re payments, thinking you will have paid down that transfer time, you’ll be in for a rude awakening whenever that point is up. You certainly will simply be capable of making minimum repayments towards it until that flex loan is compensated 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” they have been yet another stability transfer. They’re not that loan into the feeling that your particular re re re payment is similar each and they don’t affect anything you might already have on your account month. They have been merely another type of a stability transfer.
We thought 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 internet site to demonstrate the “Flex Loan” as being an area that is separate. Making sure you knew it would say whatever your monthly payment would be that it was a loan for XXX amount of money with a set number of payments and a set interest rate, and then. Then it indicated simply how much ended up being kept you had available on you”loan” and how many payments.
Though the declaration i acquired that month suggested that in the event that flex loan apr had been significantly more than other things 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 ought to have. It’s being compensated during the rate that is same your present acquisitions but it is apr should determine if it gets what exactly is within the minimum or perhaps not. To make certain that wonderful 10.99per cent interest 36 thirty days stability transfer I had going just isn’t getting any other thing more compared to minimal payment per month because that “loan” is taking whatever over online payday loans Michigan their “monthly re re re payment” is and also the minimum as a result of transfer.
Had we understood it back at the same rate as a standard balance transfer, with the higher apr that I was going to be paying. price using over every thing above the minimum re re payments, I would personallynot have taken it. Not a way.
BTW, DON’T EVER have over restriction on your own bank card for almost any explanation. The payment period back at my card begins regarding the seventeenth regarding the thirty days, and I also took away that “loan” regarding the sixteenth, the mortgage amount brought my borrowing limit towards the maximum, nevertheless the following day the attention costs in the present stability transfer I experienced over by $22.50 on it came due and pushed it. This is in Might. The June declaration arrived on the scene and it had a large notice saying that my “flex Plan” aka my “Flex Loan” rate of interest could be going as much as 24% plus the total number of re re payments accessible to me personally would get from 36 to 30 launching in August 28. Now that i believe from it, we suspect that my stability transfer we already had is roofed when you look at the “Flex Arrange” yet again 10.99% price is certainly going to 24%.