What Is a Line of Credit? And Other Flex Loan Questions Answered
February 18, 2021 | Louis Tully
Are you stuck in a financial rut and need extra money? With so many options for borrowing money available nowadays, it can be hard to know where it is best to borrow from.
Money Borrowing Options Include:
- Credit cards
- Friends and family
- Short-term loans like payday or title loans
- Lines of credit
Here we will focus primarily on lines of credit and flex loans, trying to answer all your burning questions and helping you chose the best borrowing option for your particular situation!
What is a Line of Credit?
A line of credit (also known as a flex loan) is a type of loan that provides you with a set amount of money that you can access when needed and repay overtime or in lump sums. Once repaid, the full amount is once again available for continued borrowing. Interest is only charged when money is withdrawn from the line of credit.
The biggest advantage of lines of credit is their flexibility. As you are able to always borrow from your line of credit, until the maximum amount is reached, it is a great backup to resolve cash flow issues.
What Is a Line of Credit/Flex Loan Used for?
Lines of credits/flex loans are mainly used for covering urgent and unforeseen expenses, or managing cash flow. They are supposed to be a back-up, not for daily expenses, like grocery shopping or gas.
A line of credit is ideal for people who need emergency car repairs, tuition payments, unexpectedly high utility bills, or for important events such as weddings, funerals, or when their income is not steady.
When a Line of Credit Is NOT Advisable
- Lines of credit (of flex loans) aren’t advisable to use for large purchases such as cars and homes. Auto loans and mortgages are used for those purposes.
- If your income is unstable to a degree that makes it difficult to make regular payments, then a flex loan may not be a good choice for you.
- For frivolous expenses, like shopping or everyday expenses, like gas or grocery.
What Is the Line of Credit/Flex Loan Maximum Cash Amount?
Generally, the maximum cash amount for flex loans varies depending on the type of line of credit you want to get and the financial institution you’re dealing with. With Tennessee Title Loans. Inc., the amount you can borrow depends on the value of your vehicle, as the title to your vehicle will act as a collateral in case with flex loans. The maximum amount you can get is $4000.
Is A Good Credit Score Necessary to Get a Line of Credit?
In case you are planning to get an unsecured flex loan with a bank or other financial establishment, a high credit score is a must. However, it’s a whole different story with Tennessee Title Loans, Inc., as we consider people with all types of credit history for lines of credit/flex loans. You just need to be an 18-year-old employed individual and own a vehicle in order to qualify for a line of credit.
What Are the Requirements for Getting a Line of Credit/Flex Loan?
Generally, requirements for flex loans differ depending on the state where you reside and the financial institution you’re dealing with. Tennessee Title Loans, Inc. will require the following items to be considered:
- A valid Driver’s License or State Issued I.D.
- A Lien-Free Title to your vehicle
- Your vehicle for inspection
- Proof of income
What Is the Line of Credit/Flex Loan Process Like?
To give you a better idea of what you’ll have to go through with your application process, we decided to give you a step-by-step guide below:
- Fill out an online form on our Home Page. It asks for some basic information about yourself letting us know that you are interested in getting a flex loan with us. As soon as we receive it (which will take just a few minutes), we are going to call you.
- Wait for one of our loan representatives to call you. At this point, he will answer all of your questions and let you know you need to provide to be considered.
- You will need to meet with a verification agent to inspect your vehicle and review your documents at one of our locations. You can Google “Tennessee Title Loans, Inc.” flex loans near me or simply provide our rep with your address, and he will do the job for you by picking the store location closest to you.
- Wait till the agent verifies your required items and inspects your vehicle. After that, you will go through the final steps of your approval process, including some simple paperwork.
- If you’re approved for a line of credit, you can get your money the very same day.
Remember, one of the coolest things about lines of credit/flex loans is that you they are a flexible borrowing option, letting you choose when to take out the money, pay it back, and borrow again. That’s why flex loans can really make your life easier in many cases, especially when you need cash fast. Call Tennessee Title Loans, Inc. today to find out what flex loans can do for you!