Are you looking to take out a loan, but aren’t sure which type of loan to take out? More than 20 million Americans have taken out personal loans, with the average balance being a little over $16,000.
People take out personal loans for vacations, car payments, credit card debt, and a variety of other reasons. If you’re looking to take out a personal loan, consider a Flexpay loan.
What is a Flexpay loan? And, why should you consider it?
Check out this guide to learn everything you need to know about Flexpay loans.
1. What is a Flexpay Loan?
A Flexpay loan is actually an unsecured open line of credit. Once your loan is approved, you can withdraw cash at any time, just as long as you stay within your approved line of credit.
Your credit line may be anywhere from a few hundred dollars to a few thousand dollars. How big your line of credit is will depend on how much you’re borrowing as well as the lender you work with.
With Flexpay loans, you’ll be charged interest for the amount you borrow, and you’ll be expected to make minimum monthly payments.
2. Flexpay Loan vs Personal Line of Credit
It’s important to understand that Flexpay loans are different than personal lines of credit. Many credit unions and banks offer personal lines of credit to businesses and individual borrowers.
Rates, repayment terms, and fees depend on a variety of factors, including your credit score, and whether the line of credit is unsecured or secured with collateral. If you have good credit and offer collateral, you can get a generous line of credit from the bank or credit union.
Flexpay loans, on the other hand, are unsecured. This means they’re a good option for people with rough credit or little to no credit history. You may not even have to undergo a credit check to get a Flexpay loan. You can click here to learn more about qualifying for a Flexpay loan.
3. Benefits of Flexpay Loans
Flexpay loans offer many benefits, including:
Flexpay loans come with smaller, more manageable payments. Instead of owing the total amount of your loan on the next pay date, you can pay back this loan over time.
This means you can still easily manage your monthly expenses while repaying your loan.
If you’re in need of money quickly, a Flexpay loan is a great option, as you can be approved in as little as 24 hours. If you need to cover a necessary, immediate expense, this type of loan is a great option.
And, you’ll be able to pay it back in more budget-friendly amounts.
Another great thing about Flexpay loans is that they offer payment flexibility. You can choose to pay the minimum amount on the due date, or, you can pay the loan in full or pay off an extra portion of it without worrying about any sort of penalty.
Plus, if you pay early, you can reduce your overall interest rate.
Are You Ready to Take Out a Flexpay Loan?
Now that you’ve read this guide, it’s time for you to decide if a Flexpay loan is right for you. If the answer is yes, then it’s time to start researching lenders.
And, be sure to check back in with our blog for more money-handling tips and tricks.