Citi Flex Loan - A Different Type of Personal Loan

Citi Flex - Pay for Large Purchases at a Lower Rate

The Citi Flex Loan is the newest product offering from financial services giant Citibank. Citibank is the fourth largest bank in the US with over $1.3 billion in assets.

The Citi Flex Loan is an innovative product that is available to current Citibank customers who already have an active Citi credit card account. Citi Flex lets qualified customers take a portion of their credit card limit and convert it into a personal loan with a fixed APR that is repaid in a specified number of months. You can choose your own repayment timeline, with the maximum repayment term 60 months. Longer term loans have higher interest rates.

No Application Necessary

The Citi Flex Loan process is fast and simple. You can receive funds deposited into your bank account in one to two days. You don’t need to submit a formal application and Citi doesn’t check your credit. You do need a current Citi Card account in good standing.

Citi checked your credit and required an application when you opened the Citi Card account that you use for your Citi Flex Loan, so they don’t require it again. Citi doesn’t charge an origination fee when you request a Citi Flex Loan.

Why Take a Citi Flex Loan?

Citi emphasizes a number of common uses for a Citi Flex loan, including:

1. To cover unexpected expenses
2. Take a "much-needed" vacation
3. Remodel your home

These expenses could be paid for by using your credit card, so why take out a Citi Flex loan? The main reason is that the Citi Flex loan payments will have a lower interest rate than your credit card interest rate. Your rate is not only lower, but it is a fixed rate, unlike your credit card balances. The monthly payment is also fixed and it is clear that if you make a set number of payments your Citi Flex balance will be paid off.

Citi lets you choose a repayment plan that works for you, though there is a minimum they required. Citi will present different options, making clear what your monthly Citi Flex payment will be. They also make clear that any balance you have on your credit card will have its own minimum payment obligation.

Citi Flex Pay

An interesting Citi Flex feature is that you can move eligible purchases after you have made them, shifting them from your regular CitiCard account to Citi Flex. This is called the Citi Flex Pay plan.Purchases made during your current or prior billing cycle that are greater than $100 can be included in your Citi Flex plan. Purchases that are eligible for moving into Citi Flex are clearly marked on your online or Ciit app account access.

Citi Flex is Part of Your Citi Account

Your Citi Flex Loan is part of your active Citi Card account. How much money you can borrow is based on your credit limit on your existing Citi Card account. Citi also determines your eligibility and the amount you can borrow based on your "creditworthiness and other factors." Citi doesn’t specify exactly what that means but they have access to your payment history on their account, so that clearly is one factor.

The Citi Flex transaction and information will appear on the same statement as you credit card. There is one monthly minimum payment required that covers both the CitiCard and Citi Flex balances. The statement makes clear how much you owe for each, but you make only one monthly payment.

Important Citi Flex Details

Before you take advantage of a the Citi Flex option here some important details.

• The minimum you can borrow on a Citi Flex loan is $500.
• CIti Flex Pay allows you to move elligble purhcases over $100 to a fixed rate repayment.
• No fees are charged for choosing to use Citi Flex, though late payment fees and other penalties can apply if you don't make your payment as agreed.