June 17, 2019
What are Flex Loans and How Hard Are They To Get?
Flex loans are one of the lesser used loan options in the United States, yet they have the potential to be one of the most effective lending options available to Americans. Lending is integral to the American Dream, allowing people to borrow money to get a home or undertake an educational goal. Recent lending statistics evidence the necessity of borrowing. Last year, nearly 35% of Americans took out a personal loan to get the money that they needed for things like a new car, debt consolidation, and school tuition. People between the ages of 40 and 54 were the biggest group to take out loans, followed closely by those between the ages of 55 and 75. As suggested by these age groups, it’s clear that younger folks taking out loans for school are not the average statistical lending group. So, why do we only see student loan advertisements and not advertisements for smaller loans like flex loans?
Part of the mystery behind flex loans is that they often are not advertised as well as traditional loan types. Banks and other credit agencies hold a monopoly on loan specialization and a majority of people in need of a loan flock to these businesses for loan help. Additionally, flex loans and lending options offered by title loan agencies are very frequently referred to as poor lending options. But a flex loan, or an open-ended credit line that is most often tied to your car’s title, is an excellent option for those who need quick cash and might not want to wait for a traditional loan.
Confused about what a flex loan is but you’re pretty sure you don’t want to get financial aid from the likes of a traditional loan? Read on to learn more about how flex loans might be able to help you.
What is a Flex Loan?
At face value, flex loans operate a lot like a title loan. Customers go into an establishment that offers flex loans and fill out an application, or they fill out a form beforehand and submit it online. That application helps loan providers determine how much they can lend to you, and also helps them establish lending limits. You bring your car in to have it evaluated for how much you can borrow against its worth, and then you hand the title over to the lender. You get your title back when your title loan is paid off. When you pay off a title loan, that is the end of the loan’s period, and you must fill out another application if you seek to take out more money against your car.
Think of a flex loan like a credit card, as it is considered a line of credit. You go through the same application process as a title loan, but you aren’t handed a check for the worth of your car. Instead, you are offered an open line of credit which can be repaid or borrowed against as needed. That way, you don’t need to reapply every time you need the money, and you still get the financial help you need.
How Can a Flex Loan Help Me?
For those with past credit issues, getting a traditional loan can be excruciating. Often, it requires using time you don’t have to go into a banking branch and speak with a loan officer about your borrowing capabilities. Then, there’s no guarantee that you will get the amount you asked for or get a loan with a reasonable interest rate. Flex loans are perfect options for those with credit issues because they do not require a credit check – we merely determine the amount that we are willing to lend to you by how much your car is worth, which is your credit lending limit.
Interest rates are a huge issue for those who have credit issues, and exorbitant interest rates are commonplace for people with bad credit. With a flex loan with Midwest Title Loans, you are only charged daily interest for the amount you have taken out on a particular day. So, if you have a balance of $800 and pay off $200 one day, you will only be charged for the $600 you own.
Finally, it is easier for those with past credit issues to get a flex loan, and it allows you to improve your credit score while you pay off your balance. All on-time payments are reported to credit bureaus. So, as well as increasing the lending limit on your credit history, it also improves your number of on-time payments.
How Hard is it To Get a Flex Loan?
Getting a flex loan is a quick and easy process, taking as little as hours to get you the money that you need. Additionally, flex loans are available for all types of lenders, regardless of their credit history.
To get a flex loan, you need to be eighteen years of age, own a car with a lien-free title, have a job where you make a minimum of $1200 a month after taxes, and have verification of that income. If you meet these basic requirements, you’ll be able to take out as much as you need up to your credit limit whenever you need it. Unlike traditional loans, there’s no disbursement period or waiting period for you to be approved. Flex loans are streamlined and designed with the average working person in mind.
Midwest Title Loans has been in business since 1997 and has helped thousands of customers since then get the financial help that they need promptly. With a focus on customer satisfaction, we understand how to best serve our clients based on their lifestyle and monetary needs. With locations in Gladstone, St. Joseph, and Kansas City, Missouri as well as locations in Overland Park and Kansas City, Kansas, we’re committed to serving the midwest in a tangible and meaningful way. To get started with a flex loan through Midwest Title Loans, click here and fill out our easy-to-navigate loan application. After submitting your application, a loan specialist will contact you within 48 business hours to discuss our lending terms.