How A Flex Loan Is An Alternative To A Payday Loan
Have you ever faced a financial emergency and needed a few hundred dollars to get you through until your next payday? If so, a payday loan may feel like your only option. However, a flex loan can be an alternative to a payday loan, securing the funds you need to pay for crises like medical bills, car repairs, and emergency travel.
There are two kinds of loans that you can get to fill these small "financial gaps." The most common one is a payday loan. You can borrow from $100 to $400, even with a low credit score. And since the loan can be processed quickly, you can get the money on the same day you apply or the following business day.
One alternative to a payday loan is the flex loan. It is like your regular "emergency fund" that you can borrow money from whenever you need it. You don't have to take out a new payday loan each time you run out of cash.
Flex Loans Provide An Alternative For Borrowers
What Is A Flex Loan?
With most loans, you borrow a specific amount of money and pay it back at a particular time.
Flex loans (also called a line of credit loans) are different. You are given a maximum loan amount, and you can borrow any amount within that limit and pay it back immediately or over time.
You are only charged interest for the amount you borrow, and when you pay back the amount, the limit is "reset," so you can borrow it again.
For example, if you have a flex loan limit of $3,000, you can borrow $2,000, which leaves you $1,000 in the fund if you need more money. When you pay back the $2,000 in full, you now have $3,000 again available for emergency funds.
Why Is A Flex Loan An Alternative To A Payday Loan?
Payday loans are beneficial for covering expenses when you've run out of cash or when your paycheck is delayed. However, it does have its limitations.
First, you can only borrow up to $400. You may have more significant expenses, like medical bills or car repairs, that require much more than that.
Second, you'll have to reapply for a new loan if you run out of cash again. While getting a loan with us is very fast and easy, you must submit required documents to the branch.
With a flex loan, you have emergency money on demand. You can borrow any amount within your credit limit, repay it, and borrow again. It's very convenient and can give you peace of mind knowing that you have a "backup plan" for sudden or significant expenses.
How Do I Get A Flex Loan In Tennessee?
As part of our commitment to provide simple loan options for your needs, Tennessee Title Loans, Inc. also offers flex loans up to $4,000.
You can apply for a flex loan even if you have a low credit score. You need to show proof of income (in the form of your most recent pay stub) and use your paid-off, lien-free vehicle title as security for the loan. Remember that the vehicle title must be registered under your name.
To start your application, fill out the online inquiry form. One of the loan representatives from our nearest branch will contact you to explain the loan and walk you through the process. Since you can ask questions and clarify any concerns, you can determine if the flex loan is the best alternative to a payday loan.
We have several branches in the state. To find the nearest one, use the store locator or ask the loan representatives to provide directions. When you're ready, visit the branch to submit the documents.
Be sure to bring the following items when you go to the branch:
- Most recent pay stub or other proof of income
- Lien-free vehicle title
- Driver's license or state-issued ID
- Vehicle for inspection
A loan representative will verify your documents and inspect your vehicle to determine your flex loan limit. Then, you have to sign a few remaining documents. This entire process can be finished in as little as 30 minutes.
If the loan is approved, you will receive your money on the same day or the next business day. The process is that easy!
Get Emergency Money Whenever You Need It.
Looking for an alternative to a payday loan? Want the financial security of knowing that you can always access emergency funds? Fill out our inquiry form and find out if you qualify for a flex loan!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.