flex loan

What is a Flex loan?

Flex loans really aren’t loans at all. Flex loans operate more like a credit cards than a loan. 

Flex Loans Defined 

Flex loans are just an unsecured open line of credit. Similar to a credit card, first you must apply for a flex loan. Once approved, you can withdraw cash at any time up to your credit limit, which can be anywhere from a few hundred dollars to thousands of dollars, depending on the state you live in, the lender you’re using, and how much you’re borrowing.

Also much like a credit card, with a flex loan, you will be charged interest for what you borrow. You will also get a monthly statement detailing your spending. You are expected to make a minimum payment every month, at least. And much like a credit card, interest can accumulate quickly if you’re only paying your minimum payment. Be prepared that you might be charged a fee daily, monthly or even every time you use your flex loan.

Pros of a Flex Loan

If an unexpected expense arises and you find yourself short on cash and need to borrow, a flex loan is an option available to you. 

It is an easy way to get money quickly, some even paying out in as little as two business days. 

Flexibility is in the name and it’s exactly what this kind of loan offers its customers. So securing this line of credit is relatively fast and easy

If you have a bad credit score or little to no credit history, a flex loan is an option available to you because flex loans are unsecured, and lenders may not require a credit check. But as with virtually any type of credit, the more risk the lender assumes, the higher the interest rate you’re likely to pay.

If you do not take out the maximum amount available to you, you will easily be able to borrow more later on. 

Cons of a Flex Loan

Flex loans have notoriously high-interest rates and sometimes even triple-digit APRs making this type of borrowing expensive and financially risky. 

You will have to pay interest on any money spent, and depending on the loan amount, the interest rates could be sky-high.

You will still have to pay the balance of your loan at some point, and if you are only making the minimum payment each month, the interest rates can add up quickly. 

Because it is so easy to obtain, it can be easy to fall into a cycle of continuous borrowing, thus leading to a cycle of debt. 

It could negatively affect your credit because of a hard credit check unless you consider an option like the Citi flex loan that uses your credit card information to extend your credit line. 

Much like an installment loan, you must consider the loan term to consider your monthly payments which could last indefinitely. 


If you have decent credit, collateral, or a co-signer, it may be smarter to obtain a payday loan, a personal loan, a cash advance, or even a title loan to avoid the excessive interest rates and fall into a cycle of debt. It’s important to consider why you are borrowing the money and how you plan to pay the money back. 

However, if you need money now and have rough credit, a flex loan could be a viable option for you. Just be sure to think about how much you actually need to borrow and how you plan on paying it back. Be sure to read the fine print to make sure the lender you choose isn’t charging outrageous daily interest or insane origination fees. Keep good habits and plan to pay your flex loan off much like you would a high-interest credit card payment.

Are you looking to set up a bank account with little to no credit? At Cambio Money, we’ve got your back.

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