Eligible Citi cardholders can enter Citi Flex Plan to both borrow money from their accessible credit score or repay a big buy with a hard and fast month-to-month cost plan. Right here, we break down each Citi Flex Plan choices and its options that will help you resolve if it’s a bank card profit price exploring.
What Are Citi Flex Plans?
The Citi Flex Plan is a bank card characteristic that enables some Citi cardholders to leverage their line of credit score in two methods:
Citi Flex Pay enables you to make a bank card buy, after which pay it again over a time period with a hard and fast fee. Citi Flex Mortgage permits you to borrow out of your card’s accessible credit score and repay it utilizing a hard and fast month-to-month cost.
The thought with each choice is to provide you a strategy to make a big buy or borrow cash without having to use it for a brand new line of credit score. You might also find yourself with a decrease rate of interest than you’ll by going different routes, comparable to taking out a private mortgage or carrying everyday buy stability in your card.
Not each Citi cardholder can be eligible to make use of a Citi Flex Plan as a result of presents are based mostly on creditworthiness. Those that do qualify will both obtain a direct supply from Citi, or they will log in to their account to examine if a proposal is accessible.
How Does Citi Flex Pay Work?
Citi Flex Pay enables you to select a particular buy made together with your bank card and pay it off over a set time period at a hard and fast rate of interest. You get to decide on the period (which can fluctuate from three to 48 months relying on the quantity of the acquisition), and you’ll know the mounted quantity and APR forward of time so to plan your price range accordingly.
The mounted month-to-month cost can be added to your card’s minimal quantity due every month till you attain the total payoff.
Citi Flex Pay additionally lately partnered with Amazon so to select to make use of the cost plan properly within the Amazon checkout window when utilizing your Citi card.
How Are Card Funds Utilized When You Use Citi Flex Pay?
Citi Flex Pay purchases wouldn’t have to be paid individually out of your common bank card invoice. How it really works is that your mounted month-to-month cost quantity can be added to your common bank card with minimal cost due.
If you happen to make a cost that’s greater than the minimal quantity due, the additional quantity can be utilized to the account stability that has the best APR. So for instance, say you could have everyday buy stability of $5,000 (with an APR of 14.99%), after which you could have a Citi Flex Pay buy that requires you to pay $75 monthly (and has an APR of seven.99%). In case your minimal stability due is $125, that would come with your mounted $75 Citi Flex Pay cost and a further $50 towards your $5,000 stability. Nevertheless, should you resolve to pay $250, that further $125 could be utilized to your common buy stability since that APR is greater?
Due to this fact, if you aim to pay additional towards your Citi Flex Plan stability, you would need to first cowl the complete minimal cost for that billing interval and the total quantity of your common buy stability. Then, something past that might be utilized to your Citi Flex Plan stability.
How Does Citi Flex Mortgage Work?
Taking a Citi Flex Mortgage is a straightforward course should you’re certified. There isn’t a particular software, no charge, and no onerous inquiry made in your credit score report. After you have a proposal (extra on that under), you possibly can see particulars in your account on-line. Citi will record the month-to-month cost choices and reimbursement phrases (together with the APR and the month-to-month cost you’ll owe), relying on the mortgage quantity you plan to borrow. The minimal Citi Flex Mortgage quantity is $500, whereas the utmost relies on how many accessible credit scores you could have, in addition to different elements Citi considers comparable to your creditworthiness.
When you select a mortgage quantity, you possibly can request an examination by mail or a financial institution deposit in that quantity. Direct deposits could arrive in as little as one enterprise day.
Whereas an extended cost period could decrease your month-to-month cost and provides your price range respiration room, it should additionally price you extra curiosity over time than a shorter time period. Select the shortest period you possibly can afford.
How Are Card Funds Utilized When You Use A Citi Flex Mortgage?
Identical to Citi Flex Pay, your Citi Flex Mortgage mounted cost can be added to your minimal cost every month. If you happen to pay greater than the minimal owed, the extra cost can be utilized first to the stability with the best curiosity.
In case your account has a Flex Mortgage stability and a stability switch stability (with an APR lower than that of the Flex Mortgage), funds can be utilized to your Flex Mortgage stability earlier than they are going to be utilized to the transferred stability. This means your complete Flex Mortgage stability should be paid off earlier than your stability switch may have funds utilized to it. You would attain the top of a promotional 0% stability switch interval without having lowered the transferred stability in any respect.
How Do You Apply For a Citi Flex Plan?
When you can’t apply for a Citi Flex Plan, a direct supply is perhaps despatched to you through mail or e-mail, or be listed on your Account Overview web page on-line. You may also contact Citi customer support to ask in case you are eligible for Citi Flex Plan or different presents.
Ought to You Use a Citi Flex Plan?
Utilizing a Citi Flex Plan generally is a useful instrument in some conditions, however, provided that used properly.
After you have a proposal, you’re in
It could actually prevent cash
A set-rate mortgage may make budgeting simpler
No further charges
You might be tying up your accessible credit score for longer
You’ll not earn rewards with a Citi Flex Mortgage
You would get in over your head
After you have a proposal, you’re in: There isn’t a separate credit score examination or software required to make use of a Citi Flex Plan, which suggests no onerous inquiry in your credit score report. It could actually prevent cash: You’ll be able to probably pay a decrease APR utilizing Citi Flex Pay than your regular buy APR. A set-rate mortgage may make budgeting simpler: Realizing you could have a set cost due each month may fit higher in your price range than having a bank card invoice that varies month-to-month.No further charges: Metropolis Flex Mortgage doesn’t tack on any mortgage charges like another mortgage merchandise do. There aren’t any additional charges for Citi Flex Pay, both.
You might be tying up your accessible credit score for longer: If considered one of these plans tempts you to run much bigger stability than you in any other case would, you might be affecting your credit score utilization. Utilization refers to how a lot of your whole credit score restriction is getting used, and it’s a significant factor in how credit score scores are calculated. The extra accessible credit score you employ, the larger the adverse impression it may have in your scores. You’ll not earn rewards with a Citi Flex Mortgage: Purchases paid for with Citi Flex Loans should not eligible for rewards. You should still earn rewards on purchases you employ Citi Flex Pay for. You would get in over your head: Citi Flex Plans could enhance your month-to-month minimal cost quantity to a stage that strains your price range.
Discover Your Choices
Earlier than you decide on a Citi Flex Plan, take a look at other choices. As an example, you might be able to get a decrease fee with a private mortgage. The typical private mortgage fee within the second quarter of 2020 was 9.5% for a 24-month mortgage, in response to the Federal Reserve.
Another choice is perhaps getting a brand new bank card with a 0% introductory buy fee, and utilizing that card to make your massive buy. You’d pay it off with no curiosity should you clear the stability throughout the promotional interval.
Or, should you’ve already acquired a Citi card, you might be able to open a stability switch card and repay that stability with a 0% APR. Simply take into account that as soon as the promotional interval ends on both of these sorts of presents, you’ll pay an everyday bank card rate of interest, which can be greater than what you’d pay on a Citi Flex Plan.
Metropolis Flex Pay permits you to repay a purchase order over time with a probably decrease APR than your regular buy APR. And Metropolis Flex Mortgage gives quick entry to money without having to use for brand spanking new credit score. Each could be useful for debtors who want some wiggle room however don’t wish to undergo a brand new mortgage or bank card software. For many who have a robust credit score and don’t thoughts exploring new merchandise, there could also be higher methods to unfold out the price of a purchase order. For instance, you might apply for a private mortgage or open up a brand new bank card with a 0% introductory APR. The underside line: Metropolis Flex Plan could be good in a pinch, however, use it sparingly. Borrowing or buying gadgets past your means will simply add to your month-to-month minimal cost burden, and that may trigger hassle down the road.