Are you thinking about getting a FLEX Loan?
So, you’re thinking about an Advance Financial Flex loan? Let’s learn a little more about it.
The FLEX Loan from Advance Financial is an open-end line of credit that you can keep open and use as much as you want over time.
First, there’s a few terms to know:
The credit limit is the maximum amount of money you can borrow at any one time.
A cash advance is a withdrawal, or draw, of cash from your line of credit.
The available credit is the amount of cash available after your cash advance.
The billing statement is the invoice that shows your account balance, transactions, fees, and interest, and amounts due.
The billing cycle is the time between billing statements.
The minimum payment is the minimum amount you can pay to keep your account in good standing.
Are you with me so far? Great!
So, here’s how it works:
Let’s say you are approved for a FLEX Loan with a credit limit of $500. You can take a cash advance for any amount up to the credit limit of $500. You do not have to take all the cash at once. Right now, you only need a cash advance of $100. This leaves you with $400 available credit. Let’s assume your billing cycle is 14 days. Your billing statement arrives, and you have several options to pay:
- Pay your minimum payment of $12.22
- Pay off your balance which will be $110.72
- Pay any amount in between.
And because this is an open line of credit, even if you pay the balance to zero, your line of credit stays open and available anytime you need.
And this part is really important – Please remember this is an expensive form of credit. The annual percentage rate (APR), which is the cost of your loan expressed as a yearly rate is 279.5%. Only borrow what you can afford to pay back. There is no grace period. Interest and fees will be charged every day you keep the money. We recommend you pay more than the minimum payment. Making only the minimum payment will result in more interest and fees and take longer to pay your balance.
That’s it. If you have any further questions, just call us (615) 341-5900.