Personal Loan – What is a Flex Loan? | Flex Loan vs. Personal Loan

Personal Loan - What is a Flex Loan? | Flex Loan vs. Personal LoanPersonal Loan – What is a Flex Loan? | Flex Loan vs. Personal Loan – image from pixabay.com

Personal Loan – What is a Flex Loan? | Flex Loan vs. Personal Loan. Flex loans are generally offered by means of payday lenders and name loan lenders. A majority of these loans might seem like a good alternative if you wish fast access to cash – however, they can be highly high-priced within the long run.

Here’s what you should know about flex loans:

What is a flex loan?

Pros and cons of flex loans

How flex loans compare to personal loans and credit score cards

Can you get a flex loan with bad credit?

Check personal loan rates earlier than taking into account a flex loan

What is a flex loan?

A flex loan is a variety of unsecured personal line of credit. With a flex loan, you’ll have access to a credit line that you can repeatedly draw on and pay off. You in simple terms pay interest at the actual amount you borrow with a flex like, and you’ll have to make a minimal payment each month till you pay it off – similar to a credit score card.

Unlike other forms of loans – such as personal loans – you can in all likelihood still qualify for a flex loan no matter if you have deficient or fair credit.

Keep in mind: Interest rates on flex loans are generally better than the rates on personal loans or personal strains of credit – which may make them a much more high-priced variety of credit.

If you opt to take out a flex loan or another style of loan (such as a personal loan), be sure to consider how much that loan will price over time. This way, you can prepare for any added expenses. You can estimate how much you’ll pay for a loan using our personal loan calculator below.

Enter your loan information

Loan amount

?

Enter the total amount borrowed

$

Interest rate

?

Enter your annual interest rate

%

or

Loan term

?

Enter the amount of time you have to repay your loan

years

Total Payment

$32,433

Total Interest

$17,433

Monthly Payment

$270

With a $15,000 loan, you’ll pay $270 month-to-month and a total of $17,433 in interest over the lifetime of your loan. You’ll pay a total of $32,433 over the life of the loan.

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Learn More: Personal Loan vs. Line of Credit: A way to Choose

Pros and cons of flex loans

Here are a few reasons you would possibly opt for a flex loan:

Generally easy to qualify for, no matter if you have poor credit

Flexible phrases that allow you to repeatedly access money

Approval is typically fast, providing you with fast access to cash

However, flex loans aren’t always a good choice. Here are some drawbacks to maintain in mind:

High interest rates, commonly as much as 200% APR or more

Minimum payments would not cover more than interest and fees, which may preserve you in debt longer

A revolving line of credit would lead to a long run debt cycle for some borrowers

Check Out: How Personal Loans Impact Your Credit Score

How flex loans compare to personal loans and credit score cards

Here are several important facets to notice as you compare flex loans to other varieties of credit:

,Type of credit,Average APR,Loan amounts,Loan terms

Flex loan,Revolving,Up to 200% APR or higher

(depending at the lender and state),Typically $500 as much as $5,000

(depending on the lender),Flexible

Personal loan,Installment,Varies,$600 to $100,000

(with Pulp partner lenders),1 to 7 years

(depending at the lender)

Credit card,Revolving,16.28%,About $30,000 on average

(possibly as much as $500,000, depending on credit),Flexible

Personal loans

A personal loan is a style of installment loan, which means you’ll pay it back in fixed payments by way of the end of a particular repayment term. Those loans also typically include a lot decrease curiosity rates compared to flex loans.

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Unlike revolving credit score like a flex loan or credit card, you’ll get the funds from a personal loan as lump sum. The time to fund for a personal loan is typically one week or much less – however, some lenders also provide next- or even same-day loans if you’re approved.

Tip: You can generally use a personal loan for almost any personal expense, such as debt consolidation or domestic improvements.

If you decide to take out a personal loan, make sure to consider as many creditors as possible to find the correct loan for you. Pulp makes this easy – you can compare your prequalified rates from our partner lenders within the table under in two minutes.

Lender,Fixed Rates,Loan Amounts,Min. Credit score Score,Loan Phrases (Years)

View details,9.95% – 35.99% APR,$2,000 to $35,000**,580,2, 3, 4, 5*

View details,6.49% – 29.99% APR,$5,000 to $35,000,740,1, 2, 3, 4, 5

View details,5.99% – 29.99% APR,$5,000 to $35,000,600,3, 5

View details,6.99% – 24.99% APR,$2,500 to $35,000,660,3, 4, 5, 6, 7

View details,7.99% – 29.99% APR,$10,000 to $35,000,Not disclosed by lender,2, 3, 4, 5

View details,10.68% – 35.89% APR,$1,000 to $40,000,600,3, 5

View details,15.49% – 35.99% APR,$2,000 to $25,000,580,2, 3, 4

View details,3.99% – 19.99% APR,$5,000 to $100,000,660,2, 3, 4, 5, 6, 7

(up to 12 years for domestic development loans)

View details,6.99% – 19.99% APR1,$3,500 to $40,0002,660

(TransUnion FICO®ï¸ Score 9),3, 4, 5, 6, 7

View details,18.00% – 35.99% APR,$1,500 to $20,000,None,2, 3, 4, 5

View details,5.99% – 24.99% APR,$5,000 to $40,000,640,2, 3, 4, 5

View details,6.49% – 17.99% APR,$600 to $20,000

(depending on loan term),670,1, 2, 3, 4, 5

View details,6.95% – 35.99% APR,$2,000 to $40,000,640,3, 5

View details,5.99% – 18.83% APR,$5,000 to $100,000,Does no longer disclose,2, 3, 4, 5, 6, 7

View details,6.94% – 35.97% APR,$1,000 to $50,000,580,3, 5

View details,8.27% – 35.99% APR4,$1,000 to $50,0005,580,3 to five years4

Compare rates from those lenders without affecting your credit score. one hundred pc free!

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All APRs reflect autopay and loyalty discounts wherein available | LightStream disclosure | Read extra about Rates and Terms

Credit cards

Like flex loans, credit score cards are a style of revolving credit you can pull from on an ongoing basis with out a fixed payoff date.

While credit card curiosity rates are commonly greater than personal rates (depending on your credit), they’re generally decrease than what you’ll pay in interest on a flex loan.

Ultimately, how much you’ll pay in curiosity on a credit card depends on the balance you carry and even if you pay it off by the due date each month. Remember that based on the card, you might also have to pay annual charges or different fees, such as for cash advances.

Tip: Some credit cards provide 0% APR introductory periods. This means if you pay off your card by the time this period ends, you won’t pay any interest.

However, if you can’t repay your balance in time, you may be caught with hefty curiosity charges.

Learn More: Finest Personal Loan Lenders

Can you get a flex loan with bad credit?

Unlike personal loans and credit cards, you can in all likelihood get a flex loan whether you have bad credit. Flex loan lenders usually don’t require a credit investigate for flex loans at all. To qualify for a flex loan, you’ll generally in simple terms want to:

Be a U.S. citizen

Be 18 or older

Show proof of employment

Have a bank account

However, keep in mind that flex loans can include enormously high curiosity rates. If you need to borrow money, it’s usually a larger idea to take out a personal loan so that you can avoid getting stuck with high-interest debt.

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Tip: In contrast to flex loans, you’ll typically want well to excellent credit score to qualify for a personal loan. Some lenders also provide personal loans for bad credit, although those generally include better interest rates compared to good credit score loans.

Another preference if you’re struggling to get approved for a personal loan is to apply with a cosigner. No longer all creditors allow cosigners on personal loans, yet some do. Even if you don’t need a cosigner to qualify, having one can get you a lower interest rate than you’d get on your own.

Check personal loan rates earlier than considering a flex loan

If you would like to borrow money and are considering a flex loan, it’s a well idea to compare personal loan rates as well. Whether you have poor credit, you might still qualify for a much lower interest rate on a personal loan compared to a flex loan.

Tip: In some situations, you might still must take out a flex loan. If this is the case, be sure to come up with a payoff strategy before getting your loan to minimize the cost as much as possible

Make certain to borrow simply what you need and to pay it off in the shortest amount of time you can afford to avoid extra curiosity charges and fees.

If you choose to take out a personal loan, remember to consider as many creditors as you can to locate a loan that fits your needs. Pulp makes this easy – you can compare your prequalified rates from distinctive lenders in two minutes.

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About Rates and Terms: Rates for personal loans presented by creditors on the Pulp platform range between 4.99-35.99% APR with phrases from 12 to 84 months. Rates awarded incorporate lender discounts for enrolling in autopay and loyalty programs, in which applicable. Actual rates may be different from the rates advertised and/or shown and would be based on the lender’s eligibility criteria, which include factors such as credit score score, loan amount, loan term, credit score usage and history, and vary based on loan purpose. The bottom rates available typically require ideal credit, and for some lenders, may be reserved for specific loan functions and/or shorter loan terms. The origination rate charged by the lenders on our platform ranges from 0% to 8%. Each lender has their own qualification criteria with appreciate to their autopay and loyalty discounts (e.g., some lenders require the borrower to select autopay previous to loan investment in order to qualify for the autopay discount). All rates are found by means of the lender and must be agreed upon among the borrower and the borrower’s selected lender. For a loan of $10,000 with a 3 year repayment period, an curiosity rate of 7.99%, a $350 origination expense and an APR of 11.51%, the borrower will be given $9,650 at the time of loan funding and will make 36 monthly payments of $313.32. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in covered within the APR/interest rate throughout the lifetime of the loan, the borrower will pay a total of $11,279.43. As of March 12, 2019, none of the lenders on our platform require a down payment nor do they charge any prepayment penalties.

 

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