If you’ve been hit with a financial emergency and have nowhere to turn for some fast cash, think about taking out a flex loan. These types of loans can get you out of a sticky situation fast: may people apply for flex loans to pay unexpected medical bills, car repairs, moving expenses, or even if you need a bridge between paychecks. So what are flex loans and how do they work? Simply put, flex loans are typically small-dollar loans that borrowers can pay back on a flexible schedule. First-time borrowers can typically borrow anywhere from $200 to $1,000, but the amount is based on individual state laws, a percentage of the borrower’s net monthly income, and is subject to lenders’ policies. If you have a flex loan part of its beauty is that you can pay it back as quickly or as slowly as you are able. Flex loans are also known as installment loans, as they work similarly.
How Flex Loans Work
Flex loans work much like credit line loans; in fact, think of a flex loan like a credit card that offers long-term installment payments and open-ended credit lines. The money you borrow is available, but you can use as little or much of it as you like. All you have to do is consult a flex loan lender, find out how much money you qualify for, and then use the money as needed. To secure a flex loan, you will need some source of verifiable income (the lender must know you have a way to pay it back!); a government-issued, photo ID, an open bank account, and a vehicle that is lien-free if you plan to use your car or motorcycle as collateral for the loan.
Ways to Pay Flex Loans
Flex loans come with payment plan, but another great thing about these types of loans is that if, on your loan payment due date you aren’t feeling flush, you can simply pay the amount due. If you have some extra money, you can add that to your payment and pay that flex loan balance down earlier. Flex loans never have late fees associated with them and as you pay your balance down you can take out more cash until you reach your limit. There are never payoff penalty fees associated with flex loans, either, so this type of loan gives you a whole lot of control. If you cannot make your flex loan payment on the due date, the lender will work with you to either change the due date, reduce the payment, or skip a payment altogether. It is essential to keep in mind, however, that the best way to pay a flex loan is to throw as much money as you possibly can toward it with each payment. This type of credit does not come cheap, and interest rates apply for each day you have the money. You can make the minimum payment if you have to, but keep in mind that it will more interest fees, which translates to a longer time to pay off the balance. Once you pay off your flex loan, most lenders will be willing to keep your credit line open so you can start the whole process over again.
How to Apply for Flex Loans
Interest rates and terms for flex loans vary according to the state in which you live and the amount you need to borrow, so make sure you find out that information according to your state laws. Interest rates can be high on flex loans, so shop around and find the best rate you can. It’s also a good idea to find a reputable lender you trust if you’re interested in a flex loan. You can go about this by searching online for different lenders in your areas, perusing their websites, and gathering any information you can there. You should also take the time to search for borrowers’ reviews of lenders, as this can be extremely helpful when it comes time to choose yours. Another avenue to explore is asking friends or family if they’ve ever taken out a flex loan or know someone who has; you can often get a great referral to a good lender this way. Whatever you decide to do lender-wise, at least make sure the organization follows all state and federal lending laws and is state-licensed.
Benefits of Flex Loans
If you don’t have great credit and can’t get a traditional loan from a bank, a flex loan could be your answer. Lenders of these types of loans don’t even conduct a credit check; flex loans are designed for those experiencing a financial emergency, so these lenders are used to less-than-stellar credit. A flex loan could be your answer if you need money fast and you want options when you pay it back. Once your loan is approved, you can usually get funding the next business day, which can really help if you’re poor and find yourself in a financial crisis. You won’t need perfect credit to secure a flex loan, and many companies offer online applications, making it even easier to get one. One great benefit of a flex loan is that if you have bad credit, you can use a record of good payments to rebuild your credit.
How to Be Approved for a Flex Loan
Getting approved for a flex loan is usually easy and quite fast. You typically have to fill out a short application, present your documents listed above, and sign on the dotted line; next, the lender will likely arrange for your money to go into your back account via direct deposit sometimes even the same or next day! Many lenders offer easy, online applications for potential borrowers to complete, which pre-approves them in seconds. Flex loans are always free to apply for and there is no obligation to accept the loan terms once you have applied. Although flex loans are not for everyone, if you have a good understanding of how a flex loan works, you do your research regarding lenders, and you try your hardest to pay down the loan as quickly as possible, you can fix your short-term financial problem and have a very positive experience to boot.