If you have been recently affected by debt, and are in the market for a personal loan, FlexLending may be one of the many online lenders that came up. But is myflexlending.com a trustworthy lender? Or is it a scam? In this FlexLending review, we will research this company, and their clients’ experiences and let you know whether you can trust them as a lender.
FlexLending is a personal loan provider that offers standard consumer installment loans to consumers. Installment loans are a type of personal loan that allows the borrower to receive a lump sum of cash and then make payments over time. FlexLending has been accused of using bait and switch tactics to lure customers into taking out installment loans. The company allegedly tells customers that they will be able to get a traditional personal loan with low-interest rates. However, when the customer applies for the loan, they are instead offered an installment loan with much higher interest rates.
This lender is not accredited by the Better Business Bureau (BBB), and it currently has a B+ rating. With a 1-star review on the BBB, it is certain that they do not have the best reputation.
So, is FlexLending a scam or is it legit? It is hard to say for sure. With many red flags popping up online, it may still be a legitimate company. If you are considering taking out an installment loan with them, beware of the alleged bait and switch tactics they have been accused of using, and make sure to read the fine print before you sign any documents.
FlexLending Pros and Cons
If you are considering taking out a personal loan with FlexLending, there are a few things you should be aware of. Like most lenders out there, it is important to weigh out the pros and cons of doing business with them to make a knowledgeable decision. Here is a rundown of the pros and cons of FlexLending.
- Quick and easy to qualify. The main benefit of working with this lender is they do not request too much information and documentation once you are pre-approved and the funds are transferred to your bank account within 72 hours.
- No prepayment penalties. Another notable feature is they do not charge prepayment penalties if you choose to repay your loan earlier than agreed to. This can save you money in the long run, considering the interest is compounded weekly.
- Limited loan amount. The main downside is they only offer loans up to $2,500, once you receive your pre-approved code from them. If you need a larger amount, this is not the right lender for you.
- High interest rates. Their loans are set at an Annual Percentage Rate (APR) of 165%, which is considered incredibly high and customers have reported their total repay amount to end up being more than double the original loan amount.
- Weekly payments. Lastly, their payment plans are 52 weekly payments instead of monthly, which can make it difficult to stay on top of the repayments. Additionally, customers have claimed the interest is also compounded weekly but not always disclosed when discussing the terms.
Make sure to do your research and read customer reviews and complaints before applying so you know what to expect from their service.
What is FlexLending?
FlexLending is a company that offers personal loans, which are mostly unsecured loans, meaning they do not require collateral such as a car or a home.
They can be a good option for customers who need a quick loan. However, many people have complained of bait and switch tactics. This means that the company may advertise one thing, such as low-interest rates, but then try to switch the terms of the loan at the last minute without notice.
How does FlexLending work?
FlexLending is a loan company that offers installment loans of up to $2,500 with a repayment plan of up to 1 year. The company is notable for pre-approving clients with their own personal code, promising a quick and easy application and approval process. They look at a variety of factors when determining eligibility, but do not disclose which factors.
Their repayment plan only offers 52 weekly payments with a 165% APR. This type of high-interest loan is typically used by people who are in need of quick cash and don’t notice the interest rates on these loans are typically much higher than traditional loans, which can make them very difficult to repay.
Additionally, this lender has been accused of not fully disclosing the terms of their repayment plans, which can leave customers feeling tricked and blindsided when hit with weekly compounds and additional charges or fees.
Finally, it must be noted that this lender works in a relationship with Transportation Alliance Bank, Inc dba TAD Bank. TAD Bank is the bank that originates the loans that FlexLending services and offers their clients.
How to qualify for a FlexLending loan?
MyFlexLending.com usually invites their potential customers through a pre-approval code that must be submitted when applying for a loan. In order to qualify for an installment loan, you must:
- Be at least 18 years of age (21 in MS).
- Have a minimum monthly income of at least $1,000.
- Provide a valid SSN or ITIN, email, phone number, and address.
- Maintain a checking account in good standing.
If you meet their qualifications, you can proceed to apply for your installment loan with their online application form. Once the application is approved, you will be asked to provide the rest of the documentation and the loan amount will be transferred to your bank account within 72 days, according to their website.
What are Installment Loans?
Installment loans are a type of loan that is typically repaid over a series of fixed payments, or installments. These loans are often used to finance a purchase or help customers pay an unexpected bill.
While installment loans can be a helpful way to finance a major purchase, they can also be risky. The lender only offers $2,500 installment loans with a maximum repayment period of only 1 year and a weekly repayment schedule, meaning customers have to make 4 repayments a month for a year, which can result difficult for most people.
You may apply for a FlexLending installment loan online or in person at their Boca Raton, FL location. Once you are approved, TAB Bank will transfer the approved loan amount into your account.
What kind of loans does FlexLending offer?
FlexLending offers short-term installment loans that are typically repaid over the course of several months. These loans can be used for a variety of purposes, such as covering unexpected expenses or consolidating debt. While this company’s loans may seem very convenient due to the 52 weeks repayment plan, customers need to be aware of the high-interest rates and 165% APR.
What interest rate does FlexLending offer?
FlexLending offers installment loans with fixated interest rates of 165% APR. However, there is not much available information detailing how they calculate their APR and which factors are taken into consideration to determine this interest rate. If you are considering taking out an installment loan from this loan company, make sure to carefully consider the interest rate before doing so. You may end up paying more than you can afford, and this could put you in a difficult financial situation.
How to pay back FlexLending installment loans?
If you are like most people who take out an installment loan from FlexLending, you will be making weekly payments. That means that you will need to budget carefully in order to make sure that you can afford the repayment schedule of 52 weekly payments.
The company offers automated payments via Automated Clearing House (ACH); weekly payments will be automatically deducted from your account each week.
If you miss a scheduled payment, you will be charged a late fee but they do not disclose the amount of said fee. A dishonored check fee may also apply if a scheduled payment is returned unpaid.
What if you don’t pay back FlexLending?
If you don’t pay your FlexLending personal loan, there is a chance that they will contact you to try to arrange the payment terms. If this isn’t possible because of finances or other reasons, they will likely turn the account over to a collections company and be reported in your credit history, meaning it could result in damage to your credit score, credit limits, and additional fees.
And if you default on your loan, FlexLending will likely pursue legal action against you in order to get their money back. So it’s important that you make sure that you can afford the repayment schedule before taking out an installment loan from this lender.
What is the minimum credit score for a FlexLending loan?
There is no clear answer when it comes to the minimum credit score for a FlexLending loan. While the company does not list a specific number, it is safe to say that there is no minimum credit score required in order to be approved for financing. This is good news for those with less than perfect credit, but it also means that there is no way to know for sure if you will be approved until you apply.
How does FlexLending affect your credit?
FlexLending will perform a hard credit inquiry (also known as a hard credit pull) when you apply for a loan. Hard inquiries can affect your credit by shaving a few points off, and although temporary, they can remain on your report for up to two years.
The company claims to approve applicants with poor or mediocre credit, but be mindful of the hard credit pull as it could end up making things more difficult for you. So, if you’re thinking of taking out a loan with this company, make sure you understand how it could affect your credit score. Otherwise, you may end up with more debt and a lower credit score than you anticipated.
How to cancel a FlexLending loan?
Unfortunately, the lender does not currently provide an option to cancel a loan. If you have any difficulties with your weekly payments, you will need to direct your questions and concerns to their customer service team. However, please note customers have claimed their customer service is not very helpful.
In the meantime, here are a few tips that may help you gain control of your finances:
- Make a budget that works for you and stick to it. Making a budget can help you stay on top of your loan repayments. Track your spending for a month to get an idea of where your money goes. This will help you make adjustments to ensure you have enough money to make your loan repayments each week.
- Work with a financial advisor. A financial advisor can also help you develop a budget and make smart financial decisions. They can offer guidance on how to pay off your loan while still meeting your other financial goals.
- Contact customer service. If you’re struggling to make your loan repayments, contact FlexLending’s customer service team. They may be able to offer assistance, such as deferring payments or restructuring your loan.
FlexLending BBB Reviews
As previously mentioned, FlexLending is not accredited by the Better Business Bureau (BBB). This means that the BBB does not have high confidence in its business practices. Their current BBB rating sits at B+, and their customer reviews rating is 1/5 stars. They have only received one complaint since their BBB file opened in January 2021, but this complaint was closed within the last 12 months.
If you’re considering doing business with this lender, it’s important to be aware of their less-than-stellar track record. Here are some FlexLending BBB Reviews:
Tim C 06/22/2022
When you receive your pre-approved notice for a loan from MyFlexLending, throw it away. They are not providing you with all the information. Their loans are set at 165% APR. 165% APR?! Yes, and this is just the beginning of a bad deal. What they are not telling you is that they are compounding the interest weekly and not annually, thus your interest rate increases quite heavily. A $2,000 loan with an annual APR will come with an annual interest of $1,160, making your total repayment amount $3,160 if they were compounding on an annual basis.
But since they are compounding weekly, which they do not disclose in their terms or agreement, you end up totaling $2110 in interest, making your total repayment amount over $4,000. This is more than double your original loan amount which in the real world, is 200% annual interest. Don’t bother calling them to ask them to explain how the APR is calculated because the person who answers the phone simply reads what you see on the website. So basically, they know nothing. For the other reviewer that left a review for being denied a loan, it was a blessing.
Sherry W 05/24/2022
I am going through a hardship and have 100% on time payment history and still get denied for just a small loan. Ridiculous and frustrating that lenders and creditors don’t give a crap!!! Good luck to anyone else who needs help, hopefully they’ll help you.
Is FlexLending a scam or legit?
FlexLending is a relatively new loan company, considering their BBB file was created in January 2021 and is still not accredited by the Bureau. The information published on their website and FAQ page only covers the basic details and does not fully explain the terms and conditions of their loans.
The company has been accused of bait and switch tactics by some clients, claiming they lure customers in by promising low rates only to raise them later on. Another red flag is the lender allegedly does not disclose the exact terms of the repayment plans and customers have claimed the interest is compounded weekly, raising the full repay amount to be more than double the initial loan amount.
So, is FlexLending a scam or a legitimate company? It is hard to say for sure. Potential clients should be aware of their red flags and reputation before deciding to proceed to do business with them. It is important that you do your research and read the existing reviews to fully comprehend the potential risks involved.
Have you had any experience with FlexLending? We’d love to hear about it in the comments below.
Thank you for reading!