Are Flex Loans Convenient? What are the Advantages and Disadvantages of Flex Loans?
For those who have taken Flex loans at one point in time; if asked whether it is a loan, they will certainly tell you that it is not a loan. To a great extent, it is an unsecured credit offering. When we talk about unsecured, it means that you don't need to produce anything as a guarantee. An ordinary loan requires some sort of guarantee. For example, you will be required to prove that you can pay within a given period. In most cases, banks do offer loans for those who are employed because they are sure of deducting their loans from the salaries direct from the bank.
How long does it take to be approved and for you to withdraw?
The good thing with flex loans is that once applied for, you can get to withdraw any amount within a very short time. For example, you have just applied for a flex loan. The lender will use whatever available means to check your creditworthiness. If your creditworthiness is up to the standard, then the lender will send the amount requested into your e-wallet. That is the reason why many think that it works more like credit cards rather than ordinary loans.
Once the flex loan of any amount that has been requested has been approved, processed and sent to your e-wallet, the funds will be ready for withdrawal. The good thing with flex loan is that I can take a few minutes, a few hours and even seconds if you are a very creditworthy customer. Flex loans are unsecured credit but they are slightly different from a personal line of credit offered by individual banks. Most banks do offer credit just because you are one of the customers and that your funds are normally channeled through the banks.
What do your stand to accrue from taking a flex loan?
It is an immediate solution to your immediate financial needs. Most of the big banks will not serve you interest during a financial emergency. Life is full of uncertainties and it reaches a point where you need some quick cash. Big banks will refuse such a prompt request because their loans do take time to be processed. The only available and willing source of funds in the Flex loans. Flex loans will always take the risk of lending you some amount without asking for collateral security. That is one of the big advantages of Flex loans.
Flex loans do offer a huge amount depending on your credit score
There is no limit to flex loans. However, your limit will depend on your credit scores. If you have been borrowing from other lending institutions and you have been paying your loans on time, then there are high chances that your creditworthiness is impressive. As such, you can borrow as much as $4,000. This is different when it comes to bank loans. Bank loans will simply look at your salary or you inflow an outflow of funds into and out of the account.
Instant approval, processing and withdrawal
It takes a very short time for a Flex loan to be processed. In most cases, you will receive feedback that lets you know that your loan has been approved or not. Unlike banks where your approval may take weeks and come out negative, Flex loan lenders will let you know whether you qualify or not within seconds or very few minutes. If you qualify for it, then you will receive a message that says, your Flex loan request has been received and approved. Another message will come saying that it will be processed within a few minutes. True to the message, your Flex loan will be approved or disapproved within minutes.
It is an open-end line of credit
Flex loan is not a type of loan that will deduct your salary or income from your bank account. In that case, it is an open-ended kind of loan. What does open end means, it means that you can repay or service Flex loan from whatever sources and through the approved methods of repayments. In that case, you don't need to worry about your salary being deducted and more problems being created along the way. If we compare this with other loans, you will realize that they are reliable, flexible and even friendlier to a great extent.
Withdrawal at any time from whatever means
As soon as your Flex loan has been approved, you are free to withdraw even within minutes after the funds have been channeled to your e-wallet. What does that mean? It tells you that they are perfect during financial emergencies. You might be broke at 8 a.m. and rich in the next hour.
Setbacks associated with Flex Loans
One could end up paying more during repayment. Flex loans are convenient if paid within the window of repayments that have been put in place. But since they are very convenient, one could end up paying more than he/she had expected. Every convenient thing comes with a price. In other words, Flex loans are tied together with exorbitant interests and charges. Such charges are not aimed at pissing you off but they are aimed at creating value for the money you have borrowed. For some, it is worth it because Flex loans are convenient and affordable if borrowed in small amounts.
Flex loans are financially risky
Did you know that failure to pay back Flex loans could lead to debt collectors being sent to your doorsteps almost every week? In the worst scenarios, the defaulters of Flex loans have been forced to auction their properties and other possessions just to see that the loan has been services fully. Far from that, failure to pay your flex loan will certainly affect your credit limits as well as your creditworthiness. Failure to pay on time attract penalties as far from affecting your credit limits.