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Why Online Flex Loans are good but only for Emergencies

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Flex loans are popular and necessary, but understanding their nature is important in order to be able to avoid decisions that can go sideways at times. – PowerPoint PPT presentation

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Date added: 5 August 2020
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Title: Why Online Flex Loans are good but only for Emergencies


1
Why Online Flex Loans are good but only for
Emergencies
One of the rising loan options out there, an
online flex loan is a higher cost loan that comes
with many qualities which make it the go-to
choice for emergencies. Off late however, there
is a chatter in the market, about how a lot of
borrowers tend to start using such a loan on a
routine basis given the convenience they find in
the borrowing process associated with most such
loans. In 2019, one study found that a
significant number of borrowers that contributed
to the growth of online flex loan, were
performing routine borrowing transactions for
needs that were not exactly urgent. We at
CashAmericaToday, dedicate our services to being
borrower-friendly and we believe it's important
for us to use our means of reaching out to our
customers and potential customers, to help spread
awareness about the right uses of such loans.
Understanding Online Flex Loans Online flex loans
are known to be amongst the most flexible form of
payday loans, which are particularly easy to
qualify for and acquire. For those who need a
simple introduction, a payday loan is much like
what the name suggests - a very short term loan
which is typically set to be due along with
applicable charges, on the borrower's next
payday, given that that lies within a set period
of time - usually 7-14 days ahead of the
disbursement date. Such a loan is usually quick
at paying out, which makes it a high risk loan
(due to limited feasibility of a complete credit
and payment ability verification). The two
factors - a very short term and high risk lending
- are what lead to payday loans being a high
interest rate loan. The high interest rate
doesn't necessarily translate to a very high cost
given the limited number of days that the
interest is applicable for. A flex loan is a
payday loan that is flexible in the repayment
terms. Instead of the typical 7-14 day period,
when a borrower needs a repayment window that's
longer than that, some direct lenders offer such
an option and tend to term it as a flex loan or
an installment payday loans. The reason online
flex loans are doing great, is primarily the
nature of these loans and whom they appeal to.
Since flex loans are higher cost loans which are
easily available and repayable in parts, it is
quite understandable that people in a real
emergency will make up for the largest number of
borrowers. Such emergencies are best served by
online services which do not create the need to
move around in hunt for a loan. Nonetheless,
applying for a loan from a trustworthy and
legitimate lender is key and we address this
topic ahead too. Here's a link to an example of
an online flex loan. CashAmericaToday is one of
the most experienced direct lending services
offering flexible repayment options that are
automated to suit your convenience.
2
What makes them Expensive As discussed in the
previous section, flex loans are a type of payday
loans. Being high risk loans of short term, these
tend to be higher in the interest rates than
loans that are not of such a nature. However,
high interest alone is not enough to make a loan
expensive. It is the combination of a high
interest and a longer period of due principal
amount that makes a loan more expensive. Since
these payday loans can last from 3 weeks to 6
months, the amount that the applicable interest
rate can add up to, can be quite significantly
higher than a typical payday loan or a bank loan
that may be comparable in terms of the length of
time it's borrowed for. That said, there are
times when a direct lender offers lower interest
rates for a longer term loan, to make the deal
more attractive to the borrower. If you choose to
borrow a flex loan, you could check for such
options with your lender prior to confirming the
deal.
How to Manage Repayment When considering and
deciding a loan repayment schedule, there are a
few factors one must keep in mind 1. Choose
the shortest comfortable repayment term If you
know that you have the ability to safely repay a
loan in 3 weeks, taking one for 4 weeks is simply
not worth the added extra interest amount. As
long as you know you can definitely repay loans
by a particular date, it is best to choose that
date and nothing beyond as each day shall cost.
If however, a date seems less certainly
manageable, waiting to get penalized for delays
is not the right way to handle the situation -the
borrower must either take a loan for the right
length of time or apply to extend the loan when
extension is available as an option. 2. Keep
your other due dates in mind You may have credit
card dues, pending invoices and other scheduled
due dates and none of these can be overlooked
when planning a loan's repayment schedule as your
income has to suffice for paying it all. All
delayed payments are costly at different
levels. 3. Repay more, sooner Some direct
lenders, allow absolutely flexible repayment
where if you pay a larger amount early, the
interest would only be applicable for the
remaining days on the rest of the outstanding
principle amount. It is important to know your
loan terms well and if such a term is available,
you could be saving significant amount of money
by making largest possible repayments at the
earliest convenient date. Beware that some direct
lenders may need you to inform about such
repayments, for it to reflect on your loan
outstanding amount for the benefit to be made
available to you.
3
What to Avoid when taking Flex Loans Flex loans
are non-bank direct lender payday loan
derivatives which allow enhanced repayment terms
versus traditional payday loans. However, some
traits of payday loans are inherent to them and
some traits are exclusive to flex loans. The same
stands true for associated risks of the loans
too. There are ways to mitigate such risks and
here we discuss the key issues/actions one must
avoid while taking a flex loan 1. Borrowing
from just any lender without any homework When
taking a non-bank direct lender loan of any sort,
it is absolutely important to do a little bit of
research to ensure your lender is legitimate and
reputable. Reading through some online reviews
and looking out for accreditations of the
lender's business on their website, could make
all the difference that you may need. 2.
Borrowing a payday loan for a longer term than
you need In very short term loans, each day
costs. When you take a flex loan and you're sure
of exactly how long you shall take to repay, it
is absolutely the right choice to take your loan
for just that much duration. 3. Choosing flex
loans over other feasible options that are
cheaper Is any other cheaper loan available to
you and can it serve you just as well? If you're
choosing a specialized flex loan just because
it's easier to apply, that's probably not the
right reason to be choosing this expensive loan
product. 4. Borrowing more calculating that
the loan amount can be used for the first few
repayments A lot of borrowers choose loan
amounts eyeing the possibility of utilizing a
part of the loan amount to repay the loan. This
is probably the easiest way to make you loan
enormously expensive. Instead, taking a smaller
loan with a schedule of repayment starting later,
can serve the same purpose, still being a little
cheaper. 5. Borrowing when there's no need at
all As said before, these are loans designed for
urgent needs/emergencies. These aren't intended
to be a loan for general use and using it that
way, can be a very expensive decision. 6.
Getting stuck in a debt cycle A debt cycle is
when a borrower falls into a situation when
there's an endless chain of debts which overpower
the sources of income, leading to continuously
remaining in debt that also increases with time.
Being in this situation is not just financially
damaging but also very stressful. It is
absolutely essential to understand this fact and
ensure it doesn't turn into a reality for you,
ever. Keeping the Right Sources Bookmarked Some
borrowers who are in a financial position that
wouldn't yet allow savings to be maintained for
emergencies, end up needing to use flex loans
frequently. One good practice in such a
situation, is to know which lenders are right and
keep them bookmarked in browsers. That way,
instead of doing a fresh search each time,
there's the easier choice readily available, to
head to bookmarks and then straight to the link
of a service that has previously been verified
for being genuine and reliable. If you'd like to
do so, you could check out our services at
CashAmericaToday and bookmark he website for your
future convenience. Flex Loans for Bad Credit
Borrowers When a bad credit history borrower
looks for a loan, the options usually available
are only very short term loans. This is simply
because only in such terms, is the income a
comparably relevant indicator of how safe it
would be to lend the requested sum of money to
the borrower. However, some direct lenders do go
that extra mile to offer flex loans for bad
credit borrowers.
4
Keep in mind that any loan you take as a bad
credit score holder, is likely to put you at a
greater risk than the same loan would correspond
to someone with a healthier credit score, as your
credit history is being overlooked for such a
loan's decision. This in simpler terms, means
that if you have a bad credit score, you need to
be more cautious while taking a loan. Once you
know that your decision is safe and you wish to
apply for a bad credit loan that comes with a
guaranteed approval, you could use our link and
read through the features of the loan or just
apply for the loan directly. Why use the Loans
only in Emergencies As you would've noticed by
now, flex loans are useful in many ways but end
up adding to be expensive derivatives of payday
loans as the longer term accrues more interest.
This added expense together with the rather easy
application process is a combination that can
make a risky loan still be attractive. This is
what makes it absolutely important for the
borrower to be cautious while choosing such a
loan and hence it is important to be kept as an
option only for emergencies when money is a must
and other option are simply not seeming viable.
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