A consumer with bad credit could be able to get a flex loan from a financial institution that offers it. What are flex loans? These are small loans intended for consumers who are looking to borrow up to $4,000 for any number of reasons including medical bills, auto repair or other expenses. The traditional banks only offer certain types of loans and so consumers will go to these small lenders for the funds.
It does not matter if you need the funds for three months or seven days, it is important that you get the appropriate amount of money that you need for whatever reason. This type of loan provides flexibility to the end user and gives the control needed to spend it.
Convenience and Flexibility
Unlike installment loans or payday loans, flex loans offers the consumer the convenience of making a one-time application and get the funds at any time. In addition, the consumer can make payments at their own convenience and at their own pace as long as the dates for the scheduled payments are met. If you needed a small amount such as $25, you could get that as well, but this is the minimum amount.
How it Works
Once you receive your flex loan, you can pay the minimum due or an extra amount to reduce the balance and pay it off faster. You pay no late fees and as your balance continues to be reduced as you pay, you will be able to get more money as long as it is within your credit limit. There is no penalty attached to your payment if you pay off the balance at an earlier date. In fact, your line of credit will be kept open so that if you are interested in additional withdrawal of funds, you can do so at a later date.
Flex Pay Installment Loans
The flex-pay installment loan is different from the normal payday loans that you may have heard about. You would pay back the lender with monthly installments that have scheduled dates instead of paying back the entire amount on the next scheduled pay date. If you need quick cash for unexpected expenses and find it difficult to repay the entire loan amount on the next pay date, then this loan is for you. The lender will give you specific dates to pay back the loan, but you can also pay the entire amount or make extra payments on the principal at any time that you want and there is no penalty associated with that either. When you make those extra payments, it lowers the interest rate that you will have to pay on the loan.
The Bottom Line
If you are unable to obtain a loan from a traditional bank, then this is the type of loan that will suit you, especially if you are undergoing financial hardship of any kind. Flex loans, if paid on time with no delinquency can help the consumer who has bad credit to restore their credit. You have the option to consolidate all of your debt with a flex loan as long as the amount is no more than $4,000.