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Flex loans are generally offered by payday lenders and title loan lenders. These kinds of loans might seem like a good option if you need fast access to cash — however, they can be extremely expensive in the long run.
Here’s what you should know about flex loans:
- What is a flex loan?
- Pros and cons of flex loans
- How much can you borrow with a flex loan?
- How to qualify for a flex loan
- How to get a flex loan
- How flex loans compare to personal loans and credit cards
- Other alternatives to flex loans
- Can you get a flex loan with bad credit?
- Will a flex loan hurt your credit?
- Check personal loan rates before considering a flex loan
What is a flex loan?
A flex loan is a type of unsecured personal line of credit. With a flex loan, you’ll have access to a credit line that you can repeatedly draw on and pay off. You only pay interest on the actual amount you borrow with a flex like, and you’ll have to make a minimum payment each month until you pay it off — similar to a credit card.
Unlike other types of loans — such as personal loans — you can likely still qualify for a flex loan even if you have poor or fair credit.
If you decide to take out a flex loan or another type of loan (such as a personal loan), be sure to consider how much that loan will cost over time. This way, you can prepare for any added expenses. You can estimate how much you’ll pay for a loan using our personal loan calculator below.
Enter your loan information to calculate how much you could pay
With a $ loan, you will pay $ monthly and a total of $ in interest over the life of your loan. You will pay a total of $ over the life of the loan.
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Learn More: Personal Loan vs. Line of Credit: How to Choose
Pros and cons of flex loans
Here are a few reasons you might opt for a flex loan:
- Generally easy to qualify for, even if you have poor credit
- Flexible terms that let you repeatedly access money
- Approval is typically fast, giving you quick access to cash
However, flex loans aren’t always a good choice. Here are some drawbacks to keep in mind:
- High interest rates, sometimes up to 200% APR or more
- Minimum payments might not cover more than interest and fees, which could keep you in debt longer
- A revolving line of credit could lead to a long-term debt cycle for some borrowers
Check Out: How Personal Loans Impact Your Credit Score
How much can you borrow with a flex loan?
The amount you can borrow with a flex loan depends on the lender you choose. Some lenders will consider your income to determine your credit limit. However, you can typically borrow anywhere from $100 to thousands of dollars.
Flex loans often have lower borrowing limits than standard personal loans and personal lines of credit. If you need to borrow a large sum of money, you may need to choose another option.
How to qualify for a flex loan
Fortunately, flex loans are generally easy to qualify for. In most cases, you won’t need good or excellent credit to get approved. In fact, most lenders won’t even check your credit score.
Most lenders that offer flex loans have a few very lenient requirements, such as:
- An application: You’ll have to fill out a short application form and share some details about yourself and your income. It shouldn’t take more than a few minutes to complete.
- Proof of income: Typically, lenders will require you to submit documents that prove your income to show your ability to repay what you borrow. These documents may include pay stubs, tax forms, or bank statements.
How to get a flex loan
If you’re interested in a flex loan, follow these steps:
- Shop around. Not all flex loans are created equal. Do your research and find at least a few lenders that offer them. Then, compare borrowing limits, rates, fees, and terms.
- Apply. Most lenders will let you apply for a flex loan online. However, some lenders may require you to apply in person. Be sure to double-check your application and submit all required documents to avoid delays with approval and funding.
- Receive your funds. Upon approval, the lender will distribute your funds. This may occur the same day you get approved, within 24 hours, or in a few business days.
How flex loans compare to personal loans and credit cards
Here are several important points to note as you compare flex loans to other types of credit:
| Type of credit | Average APR | Loan amounts | Loan terms | |
| Flex loan | Revolving | Up to 200% APR or higher (depending on the lender and state) | Typically $500 up to $5,000 (depending on the lender) | Flexible |
| Personal loan | Installment | Varies | $600 to $100,000 (with Credible partner lenders) | 1 to 7 years (depending on the lender) |
| Credit card | Revolving | 16.28% | About $30,000 on average (possibly up to $500,000, depending on credit) | Flexible |
Personal loans
A personal loan is a type of installment loan, which means you’ll pay it back in fixed payments by the end of a specific repayment term. These loans also typically come with much lower interest rates compared to flex loans.
Unlike revolving credit like a flex loan or credit card, you’ll get the funds from a personal loan as lump sum. The time to fund for a personal loan is typically one week or less — however, some lenders also offer next- or even same-day loans if you’re approved.
If you decide to take out a personal loan, be sure to consider as many lenders as possible to find the right loan for you. Credible makes this easy — you can compare your prequalified rates from our partner lenders in the table below in two minutes.
| Lender | Fixed rates | Loan amounts | Min. credit score | Loan terms (years) |
|---|---|---|---|---|
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 7.99% - 35.99% APR | $10,000 to $35,000 | Not disclosed by lender | 2, 3, 4, 5 |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 9.95% - 35.99% APR | $2,000 to $35,000** | 550 | 2, 3, 4, 5* |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 7.99% - 15.19% APR | $10,000 to $50,000 | 740 | 3, 4, 5, 6 |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 8.99% - 35.99% APR | $2,000 to $50,000 | 600 | 3, 5 |
|
||||
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 6.99% - 24.99% APR | $2,500 to $35,000 | 660 | 3, 4, 5, 6, 7 |
|
||||
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 11.25% - 24.5% APR | $5,000 to $40,000 | 640 | 2, 3, 4, 5 |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 9.57% - 35.99% APR | $1,000 to $40,000 | 660 | 3, 5 |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 7.99% - 35.99% APR | $2,000 to $36,500 | 600 | 2, 3, 4, 5, 6 |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 7.99% - 24.99% APR | $5,000 to $100,000 | 700 | 2, 3, 4, 5, 6, 7 (up to 12 years for home improvement loans) |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 18.0% - 35.99% APR | $1,500 to $20,000 | None | 2, 3, 4, 5 |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 8.49% - 17.99% APR | $600 to $50,000 (depending on loan term) | 700 | 1, 2, 3, 4, 5 |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 6.99% - 35.99% APR | $2,000 to $50,000 | 640 | 2, 3, 4, 5 |
|
||||
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 8.99% - 25.81% APR10 | $5,000 to $100,000 | Does not disclose | 2, 3, 4, 5, 6, 7 |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 7.9% - 29.99% | $2,000 to $25,000 | 660 | Does not disclose |
|
||||
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 11.69% - 35.99% APR7 | $1,000 to $20,000 | 560 | 3, 5 |
|
||||
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 8.49% - 35.99% APR | $1,000 to $50,000 | 600 | 2, 3, 5, 6 |
|
||||
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 4.6% - 35.99% APR4 | $1,000 to $50,0005 | 620 | 3 or 5 years4 |
|
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Credit cards
Like flex loans, credit cards are a type of revolving credit you can pull from on an ongoing basis without a fixed payoff date.
While credit card interest rates are sometimes higher than personal rates (depending on your credit), they’re generally lower than what you’ll pay in interest on a flex loan.
Ultimately, how much you’ll pay in interest on a credit card will depend on the balance you carry and whether you pay it off by the due date each month. Keep in mind that depending on the card, you might also have to pay annual fees or other fees, such as for cash advances.
However, if you can’t repay your balance in time, you could be stuck with hefty interest charges.
Learn More: Best Personal Loan Lenders
Other alternatives to flex loans
If you decide a flex loan doesn’t make sense for you, you might want to consider these options:
- Borrow from friends and family: A trusted friend or family member may be willing to lend you money at a low interest rate or for no interest at all. If you go this route, be sure to write down the loan details and how you plan to pay it back so that everyone is on the same page.
- Personal line of credit: With a personal line of credit, you can withdraw money as often as you need to, up to a set credit limit. You’ll repay what you borrow plus interest each month. Keep in mind that you may have to pay a fee whenever you use your line of credit.
- Payday alternative loans (PALs): Some federal credit unions offer these loans, which let you borrow a small amount of money at a lower interest rate than payday loans. You typically must be a credit union member to qualify for a PAL.
- “Buy now, pay later” financing: With buy now, pay later programs, you can make purchases and pay for them over time, usually in fixed installments. Typically, there are no interest charges, but you may encounter late fees if you miss payments.
- Cash advance apps: Cash advance apps let you borrow a small amount from your next paycheck before you get it. You can use it to cover bills or any other expense that can’t wait until your next payday, and you won’t have to worry about interest.
Can you get a flex loan with bad credit?
Unlike personal loans and credit cards, you can likely get a flex loan even if you have bad credit. Flex loan lenders often don’t require a credit check for flex loans at all. To qualify for a flex loan, you’ll generally only need to:
- Be a U.S. citizen
- Be 18 or older
- Show proof of employment
- Have a bank account
However, keep in mind that flex loans can come with extremely high interest rates. If you need to borrow money, it’s usually a better idea to take out a personal loan so you can avoid getting stuck with high-interest debt.
Another option if you’re struggling to get approved for a personal loan is to apply with a cosigner. Not all lenders allow cosigners on personal loans, but some do. Even if you don’t need a cosigner to qualify, having one could get you a lower interest rate than you’d get on your own.
Will a flex loan hurt your credit?
Since most lenders won’t check your credit score, applying for a flex loan won’t hurt your credit. But if you make late payments on your loan or miss them altogether, your credit will likely take a hit.
That’s why it’s a good idea to budget for a flex loan in advance and make sure you can comfortably afford its interest rate and any fees. Failing to repay what you borrow may lower your credit score and steer you into a cycle of debt.
Check personal loan rates before considering a flex loan
If you need to borrow money and are considering a flex loan, it’s a good idea to compare personal loan rates as well. Even if you have poor credit, you might still qualify for a much lower interest rate on a personal loan compared to a flex loan.
Make sure to borrow only what you need and to pay it off in the shortest amount of time you can afford to avoid extra interest charges and fees.
If you decide to take out a personal loan, remember to consider as many lenders as you can to find a loan that suits your needs. Credible makes this easy — you can compare your prequalified rates from multiple lenders in two minutes.
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About Rates and Terms: Rates for personal loans provided by lenders on the Credible platform range between 4.60%-35.99% APR with terms from 12 to 84 months. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 10%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender. For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 11.51%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43. As of March 12, 2019, none of the lenders on our platform require a down payment nor do they charge any prepayment penalties.
Emily Guy Birken has contributed to the reporting of this article