Citi Flex Loan Guide | Bankrate

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Citi Flex Plan is a program that lets existing Citi cardholders use their already-approved credit in different ways. This program has two components: Citi Flex Pay and Citi Flex Loan.

Citi Flex Pay is a buy now, pay later feature that lets users split up the cost of eligible purchases into fixed monthly payments for a fixed plan cost. Citi Flex Loan, on the other hand, can be a useful alternative to running up a balance on your card for unexpected expenses or taking out a credit card cash advance.

This guide will focus on the Citi Flex Loan specifically, which lets users borrow money against their existing line of credit without a credit check. Learn how this loan works, how you can qualify and other details in the sections below.

How does a Citi Flex Loan work?

Note: Not all Citi card members are eligibile for Citi Flex Loans.

Citi Flex Loans let eligible Citi card members convert part of their credit card account’s credit limit into a personal loan. From there, they can pay off the loan amount in fixed monthly installments with both a fixed interest rate and fixed schedule (up to 60 months).

If you decide to apply for a Citi Flex Loan, you can receive your funds via direct deposit in one to two business days. As you pay off your Citi Flex Loan, the amount due on your account will include both your credit card’s minimum payment as well as the fixed monthly payment for your Citi Flex Loan.

Applicants can customize the loan terms during the application process, allowing them to settle on a monthly payment amount that works for them. There is no prepayment penalty, and you can choose to pay more than the minimum any time. Unfortunately, you can’t earn credit card rewards on your loan.

Citi Flex Loans: Pros and cons

Citi Flex Loans offer a convenient way to borrow money if you’re already a Citi cardholder, yet there are plenty of downsides to be aware of. Consider the pros and cons of this personal loan alternative before you request it on your Citi account.

Pros

• No credit check
• No origination fees
• Fixed rates
• Easy process

Cons

• No rewards
• Better rates available elsewhere
• No zero interest financing option
• Potential for credit impact
• Not available to everyone

• Pros in detail

  • No credit check: You don’t have to apply for more credit; thus, there will be no hard inquiry on your credit report.
  • No origination fees: These loans don’t come with any fees, including the pricey origination fees some personal loans charge. There are also no prepayment penalties.
  • Fixed rates: Interest rates on these loans are fixed, and you can see and agree to your offered rate ahead of time.
  • Easy process: You’re already in the Citi system and approved for a line of credit, so you won’t have to go through a lengthy process or fill out a full loan application to get started.

• Cons in detail

  • No rewards: You don’t earn credit card rewards, including cash back or rewards points, on Citi Flex Loans.
  • Better rates available elsewhere: Citi Flex Loans may come with a higher interest rate than you could get with a personal loan.
  • No zero interest financing option: Interest rates on Citi Flex Loans are definitely higher than you can get with credit cards that offer a 0 percent APR on purchases for a limited time.
  • Potential for credit impact: These loans can cause negative impacts to your credit score if your utilization goes up too far.
  • Not available to everyone: You must be targeted for a Citi Flex Loan to qualify, meaning they’re not available to everyone.

How to get a Citi Flex Loan

While not everyone is eligible for a Citi Flex Loan, you can see if this is an option for you with a few simple steps.

• Inquire in your Citi account: According to Citi, cardholders can check to see if they’re eligible for a Citi Flex Loan by logging in to an online Citi account.
• Call the card issuer: You can also call Citi customer service to ask if you’re eligible for a Citi Flex Loan. You can reach Citi at 1-800-950-5114.

Citi Flex Loan vs. Citi Flex Pay: What’s the difference?

Whereas Citi Flex Pay lets eligible cardholders break up the cost of eligible purchases over a specific length of time, Citi Flex Loans let Citi cardholders borrow money in a lump sum against their line of credit. The chart below breaks down the major differences between these two programs:

Alternatives to the Citi Flex Loan

If you’re on the fence about a Citi Flex Loan, make sure to consider some financing alternatives that may come with a better monthly payment, lower overall costs or both.

• Personal loans

  Personal loans can be offered with fixed interest rates as low as 6.49 percent for those who qualify, and you can also secure a fixed monthly payment and payoff date that will never change. It’s easy to apply for personal loans online, and you can get your money deposited into your bank account within a similarly short time.

• Home equity loans and HELOCs

  Home equity loans and home equity lines of credit (HELOCs) can work well if you have considerable home equity that you can borrow against. Both offer competitive interest rates, although they require you to use the value of your home as collateral for the loan. Note that home equity loans come with a fixed interest rate and fixed monthly payment similar to personal loans, whereas HELOCs offer a line of credit with a variable interest rate.

• Credit cards with 0 percent APR

  If you need to make a large purchase and pay it down over time, many credit cards offer 0 percent APR on purchases for a limited time. Some cards in this niche even let you earn rewards as you spend.

  Just note that credit cards with 0 percent APRs don’t usually apply this introductory rate if you use your card to get cash at an ATM. In other words, this option is best for purchases you make with plastic, but not really useful if you need cash.

Bottom line

Is a Citi Flex Loan a good idea? At the end of the day, only you can decide if this kind of financing is right for you. Before moving forward with a Citi Flex Loan, consider whether it aligns with your needs and ability to repay. Also, consider a few alternatives that might be less costly than a Citi Flex Loan over time.

Borrowing money doesn’t have to be stressful. Do your research to make sure you’re getting the best deal and find the best payoff plan for yourself.