What Exactly Is a Citi Flex Plan, and How Does It Function?

Dec 04, 2023 By Triston Martin

To pay off a significant purchase with a set monthly payment, Citi Flex Plan is available to eligible Citi cardholders. To assist you in determining if the Citi Flex Plan is a benefit worth investigating, we've broken down the available options and the plan's benefits.

What Is a Citi Flexible Plan?

As part of the Citi Flex Plan, some Citi credit cards can use their line of credit in two ways. Credit card purchases can be made using Citi Flex Pay and then paid back at a fixed interest rate over a certain period.

Your available credit on your card can be used to borrow money, and you pay it back with a predetermined monthly payment. With either option, you may make a significant purchase or take out a loan without applying for a new line of credit.

For example, you may be able to save money on your interest rate by taking out a personal loan or keeping a balance on your credit card. Because offers are dependent on creditworthiness, not all Citi cardholders will be eligible to use the Citi Flex Plan.

FlexPay at Citi: A Quick Guide

On a credit card, purchases are typically reflected in your balance, and monthly payments are dependent on the total amount owed. Perhaps if you have to pay the bare minimum each month, you may pay more to cut your interest costs or even get rid of them completely.

Cardholders can divide purchases from their overall amount and stretch out the payment of those goods in predetermined payments using Citi Flex Pay.

It's better to spread out the payment of significant purchases made with your credit card over time rather than pay the minimum each month, says Curinos' Gina DeCorla, a senior research analyst. "This lowers your credit usage ratio."

There is a $75 minimum purchase requirement for the service offered. Log into your online account and choose a qualified purchase highlighted with the Flex Pay symbol to begin using it immediately. Your payment options will include interest rates and payment amounts, and you'll be able to select the one that works best for your budget and situation.

How Does Citi Flex Pay Apply Card Payments?

Using Citi Flex Pay does not necessitate a separate credit card bill. For example, your set monthly payment is added to the amount you owe on your credit card each month. You will be charged interest on the portion of your account balance with the highest APR if you make a payment that is greater than the minimum amount due.

2 As an example, let's suppose you have a $5,000 standard purchase amount (with an APR of 14.99%) and a $75-per-month Citi Flex Pay purchase (and has an APR of 7.99 percent). If you elect to pay $250, the extra $125 will be added to your average purchase debt because the APR is greater.

The minimum payment for that billing month and the total amount owed on your regular purchases must be paid before you may make further payments against your Citi Flex Plan debt. Your Citi Flex Plan balance can then use the rest of the money.

What Is the Process of a Citi Flex Loan?

The application process for a Citi Flex Loan is straightforward, provided you meet the requirements. This service does not need a specific application, nor does it charge you a price. In your account, you'll be able to examine the specifics of any offers you've received (more on that below).

Depending on how much you want to borrow, Citi will provide you with a breakdown of your monthly payment alternatives and repayment conditions (including the APR and the amount you'll owe each month).

You may get a Citi Flex Loan for as little as $500 and as much as $15,000, depending on your creditworthiness and the amount of credit you have available. Once you've decided on a loan amount, you can request a check by mail or bank deposit in that amount. As soon as the following business day, direct deposits can be received.

How Do Card Payments Work With A Citi Flex Loan?

The fixed payment on your Citi Flex Loan will be added to your monthly minimum payment, just like with Citi Flex Pay. Additional charges will be applied first to the debt accrued the most interest.

What Is the Process for Getting a Citi Flex Card?

However, if you receive an email or letter with an invitation to apply for the Citi Flex Plan, it may be featured on your Account Overview page online. Contact Citi customer care to see whether you are qualified for the Citi Flex Plan or other incentives.

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