What Are Flex Loans Online?
Money emergencies can throw you off guard and put your financial plans in jeopardy. If your savings or emergency fund do not accommodate such emergencies, it may be smart to take a loan. A flex loan online is one good one to consider.
A flex loan is an open-end, flexible line of credit, that an applicant can take out and pay in multiple installments. It’s more similar to a credit card loan than it is to a payday loan.
Once approved for a flex loan, you have an open-end of credit up till the credit limit. You are allowed to get as much cash as you need - within the credit limit - and pay back in manageable payments.
Unlike closed-end loans like personal, payday, or title loans, you do not need to apply for cash each time you need it. Basically, it’s a one-time approval loan.
Why Flex Loans?
There are many reasons why you should consider getting a flex loan. Chief among them is that the application process is quite easy and can be started and completed online. Others are:
Easy to qualify
Flex loans are easy to qualify for, even if you have bad credit. You could be approved for one once you can prove you earn enough to repay the requested sum in time.
Good credit isn’t a requirement
Good credit is generally not a requirement for many flex loan lenders. Most of these lenders look beyond your credit score when making considerations for approval. They may be more particular about your employment history, income, etc.
Flexible terms
Usually, flex loans have flexible terms that help the borrower easily and repeatedly access money whenever they like. The money can be used to finance the applicants' expenses as long as their limit isn’t exceeded.
Zero collateral requirement
Flex loans are mostly unsecured. Therefore, you may not need any form of collateral to secure one. Collateral may be used to negotiate better offers but it’s never a requirement for approval.
No cosigner requirement
You rarely need a cosigner to secure a flex loan. This remains the case whether or not your credit score is good. A lender should okay your application once the results of their assessment show you can afford one.
What Are the Drawbacks of Flex Loans?
Flex loans are quite the deal. They can help you get through financial emergencies and may be your only saving grace when other cash options fail. However, they are not without their cons. These are some of the reasons why some borrowers may rethink their decision to take out a flex loan or consider it only as a last resort.
High-interest rates
Flex loans are not cheap. While there are many regulatory laws to combat predatory lending, the interest rates on flex loans are considered very high compared to bank loans and some other loan options. Indeed, they can be as high as three-digit APRs.
Accumulate debt
Since it’s not a closed-end loan like personal or payday loans, some borrowers may end up taking on more debt than they can manage. You may continue to borrow and repay the borrowed cash plus the interest charged on it without necessarily reducing your debt.
Can I Get a Flex Loan With a Bad Credit Score?
Yes, you can. Flex loans are available to people with good and bad credit scores alike. Credit scores hardly count towards flex loan approvals. The lenders focus more on your ability to repay the borrowed cash rather than how you’ve handled debts in the past, which is usually highlighted in your credit report.
Most often than not, your chances of getting a loan are still fairly high once you meet the basic eligibility criteria, even if your credit score is far from excellent. Some of these eligibility criteria include that you;
- are at least 18 years old;
- have a government-issued ID;
- have a monthly income of at least $800;
- have a checking account;
- can provide valid contact information (phone number or email address).
Documents Needed to Get Started With a Flex Loan
You can apply for a flex loan with many lenders even if your credit score is far from stellar. But the following documents should be prepared and ready before you can be considered for one:
- Proof of residency/home address, usually a utility bill with your names clearly written on it
- Driver’s license or state-issued ID card
- Current bank statement or paystub
- Verification for other sources of income (if applicable)
Usually, the driver’s license or state-issued ID card is used to verify your identity, while the bank statement is used to verify your income to see how much loan you can conveniently afford.
Some lenders may require a few more documents. However, this is rarely the case, and even when this happens, the documentation requirement is not comparable to what’s required during bank loan applications.
FAQs:
How Much Can I Get With a Flex Loan?
This ultimately depends on the lender and their assessment of your borrower’s profile, including how much you can afford. However, you should be able to get anything from $500 up to $5000. Although the max isn’t as high as a personal loan, it is important to note that it’s a revolving credit; that is, it can be renewed as debts are paid off.
Alternatives to Flex Loans
There are many alternatives to flex loans. While some are short-term, others are long-term. They may also be grouped into secured or unsecured loans. The most common of these loans are cash advances, personal, payday, installment, same-day, car title, bad credit, and quick loans. These loans are available on CocoLoan.
