Flex Loans Guide

What Is a Flex Loan?

A flex loan is typically an unsecured personal line of credit that works more like a credit card than a personal loan. With most flex loans, you can access funds up to a preset credit limit, which is determined by the lender, and your borrowing power will be replenished as you pay off what you owe. You’ll usually pay interest on flex loans, but only on the amount you actually borrow.

Key Things to Know About Flex Loans

• Flex loans typically do not require a credit check. Instead, lenders consider your income and other factors to determine your ability to repay the loan and the terms you should receive.
• Flex loans are offered by banks, credit unions, online lenders, and payday lenders.
• Flex loan APRs and fees vary widely, but flex loans from banks and credit unions typically charge lower APRs.
• Flex loans from online and payday lenders typically charge very high APRs, up to 280% or more.
• Flex loan amounts vary based on the provider and your overall creditworthiness but tend to be small.

While flex loans generally work as described above, some major banks, such as Wells Fargo and Citi, offer a product called a “flex loan” that’s more like a small personal loan with set monthly repayment amounts.

Popular Flex Loan Options

Wells Fargo

Wells Fargo offers small flex loans that eligible existing customers can apply for. The application, loan funding, and loan repayment are all done through the Wells Fargo app, and you can check for an offer by logging in to the app.

• Loan Amount: $250 or $500
• Cost: Flat fee of $12 or $20; no interest charged
• Repayment Terms: 4 equal monthly installments
• How You Get Funds: Deposited to your Wells Fargo bank account

Citi

Citi’s flex loan operates similarly to a credit card cash advance, but without the steep fees usually associated with cash advances. Eligible Citi credit card customers can take cash from their existing credit card account, and then repay the amount in monthly installments at a fixed APR. The minimum monthly payment for your flex loan will be added to your monthly credit card bill. You can log in to your Citi account online to check for a flex loan offer.

• Loan Amount: $500 up to your existing credit card’s limit
• Cost: Fixed APR; generally lower than your Citi credit card’s APR
• Repayment Terms: 12 to 60 equal monthly installments
• How You Get Funds: Deposited to your bank account or mailed as a check

Advantis Credit Union

Funds from the Advantis Personal Flex Line are directly deposited into your checking or savings account, and the whole process can be done right from the credit union’s app. To join the credit union, you need to live or work in Washington or certain parts of Oregon, or be related to someone who does.

• Loan Amount: $250 - $30,000
• Cost: 15.24% - 24.24% (V) APR
• How You Get Funds: Transfer to your Advantis checking or savings account

SkyPoint Federal Credit Union

SkyPoint Federal Credit Union offers a flex loan with very few requirements, no credit check, and fast approval. The application process is entirely online, providing easy access to cash, but you’ll need to be a SkyPoint member and have an account open for at least 3 months to be eligible for a flex loan.

To join SkyPoint, you need to live, work, worship, attend school, or volunteer in certain parts of Virginia, Washington, D.C., or Maryland. Alternatively, you could join if you’re related to someone who is eligible or you live in the same house as a current member.

• Loan Amount: $250 - $1,000
• Cost: 28% APR + $20 application fee
• Repayment Terms: Up to 3 or 6 months

Advance America

Online lenders like Advance America offer quick and easy applications, making it simple to open a Flex Line of Credit. Advance America welcomes applicants with any credit score, which can be helpful for borrowers with bad credit, but the APR can be high. Advance America flex loans are repaid in full with a single payment or in monthly installments. Keep in mind that Advance America only offers the Flex Line of Credit in certain states.

• Loan Amount: Up to $3,000, depending on your creditworthiness and state of residence
• Cost: Up to 259%, based on your state of residence
• Repayment Terms: Either pay full amount at once, or make set monthly payments
• How You Get Funds: Deposited into your bank account

How Flex Loans Work

1. Apply or accept the offer.

   Depending on the institution, you may be able to apply for a flex loan online or via an app. You will usually need to provide documents like a copy of your ID, proof of income, and bank statements. In some cases, you may only need to accept the flex loan offer in your existing account rather than applying for the loan.

2. Get your credit line.

   Once approved, the provider will give you access to a credit account  – often with no set payoff date, like a line of credit. Banks and credit unions may require that you have a checking, savings, or credit account with them before opening a flex loan. Some banks, such as Citibank, may use your established credit card account as your flex money source.

3. Receive your money.

   Flex loan funding is usually quick, taking anywhere from a few minutes to a few business days after approval. With a Wells Fargo Flex Loan, for example, funds are deposited into your Wells Fargo bank account. Other flex loan providers will simply allow you to withdraw from your line of credit account into a bank account. There may be restrictions and other rules for withdrawing cash depending on your lender.

4. Spend the funds.

   You can use the money from your flex loan for almost anything. You simply access the money the same way you would with a credit or debit card.

5. Repay the balance.

   In most cases, you can choose to pay only the minimum each month, pay the balance in full, or anything in between. In some cases, however, you’ll be required to repay your loan in set monthly installments. For example, the Wells Fargo Flex Loan allows eligible account holders to borrow a small amount that’s repaid in four set monthly payments. Interest may be charged on the amount you withdraw, depending on the loan provider.

Flex Loan Advantages and Disadvantages

Flex loans can be an attractive option for people with limited credit history or low credit scores since many lenders don’t do a credit check. Just keep in mind that some lenders will check your credit at some point in the process. Citibank, for example, will check your credit score during the application for the original credit account that you need to have before getting a flex loan. You can typically get money within a couple of business days, and you can continue to borrow as you pay down your balance each month.

On the other hand, flex loans can come with high interest rates and might lead some borrowers into getting overwhelmed by debt. It’s also worth noting that flex loan fees, interest rates, and repayment terms vary widely and depend on the provider. Flex loans are still a more affordable option than payday loans, though both can be more costly than personal loans.

Alternatives to Flex Loans

If you have good credit or something to offer up as collateral, you may be better off looking at low-APR personal loans or secured loans for your borrowing needs. You might also consider a no-fee credit card if you want a cheaper option than a flex loan.

Credit cards with no fees allow you to borrow money for free for up to a few weeks if you pay your entire balance every month, thanks to credit card grace periods. Select credit cards also offer 0% APR introductory periods that can be helpful if you’re able to pay back the loan before the introductory period is up.