Can you pay off your Citi® Flex Loan early?
You may pay off your Citi® Flex Loan early by paying your account balance in full. Your Citi® Flex Loan is added to your credit card’s current balance, so your Citi® Flex Loan monthly payment will be added to the Minimum Payment Due each billing cycle until paid in full. If you pay more than your Minimum Payment Due on your credit card balance by the payment due date, then the payment amount above the minimum will generally go toward balances with higher annual percentage rates (APRs) first. If your Citi® Flex Loan has a higher APR than your credit card balance, the funds will go toward the loan. If it has a lower APR, then your payment may go toward your credit card balance.
Is there a Citi® Flex Loan prepayment penalty?
There are no prepayment penalties when you pay off your Citi® Flex Loan early. This provides flexibility if your financial situation allows you to repay the loan ahead of schedule.
Benefits of paying off your Citi® Flex Loan early
Paying off your Citi® Flex Loan early means you may pay less in interest on the amount that you borrowed. When you pay less in interest, you pay less money overall.
You might also be able to increase the amount of available credit at your disposal. As you pay off the loan early, you regain access to that available credit sooner and increase the amount of available credit for future use.
How to pay off a Citi® Flex Loan early
Your Citi® Flex Loan monthly payment is added to your credit card's Minimum Payment Due. Making your minimum monthly payment is generally the first step in paying off your Citi® Flex Loan balance.
If you’d like to pay off your Citi® Flex Loan early, however, you’ll need to pay more than your Minimum Payment Due. Here’s a general approach:
- Access your Citi online account or mobile app to view your current Citi® Flex Loan balance, which is part of your overall credit card balance.
- When making your credit card payment, simply pay more than the Minimum Payment Due. As mentioned previously, payment amount above the Minimum Payment Due will generally go toward balances with higher annual percentage rate (APRs).
Please refer to your Citi Cardmember Agreement for more details.
Important considerations
Before deciding to pay off your Citi® Flex Loan early, consider the following:
- Your overall financial situation: Ensure that making a larger payment towards your Citi® Flex Loan doesn't negatively impact your ability to cover other expenses or higher-interest debts
- Other card balances: If you have other balances on your credit cards with a higher APR than your Flex Loan, paying those down first might be a more financially optimal strategy
Closing thoughts
The option to pay off your Citi® Flex Loan early without penalty is a valuable feature that helps you decrease the amount of interest you will pay over time, and it also increases the amount of credit you have available to you. By understanding how the loan works, how payments are allocated, and the benefits of early repayment, you can make informed decisions that align with your financial goals.
Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.
