Citi® Flex Plan: Flex Loan vs. Flex Pay

Key insights:

• Citi^® Flex Pay and Citi® Flex Loan offer flexible ways to manage your finances without a separate application
• Citi Flex Pay lets eligible Citi credit card customers split qualifying purchases of $75 or more into fixed monthly payments
• Citi Flex Loan allows you to borrow from your available credit and receive funds directly into your bank account or delivered via check
• Both options may be available to eligible Citi cardmembers based on their creditworthiness, the amount of available credit they have and other factors

Have you ever needed to make an important purchase, like a major appliance or last-minute concert tickets, but preferred not to pay the full amount up front? If you’re a Citi cardmember, you may be eligible for an installment plan with Citi Flex Pay or a Citi Flex Loan.

Citi Flex Pay is a form of pay-over-time for eligible Citi credit card customers for qualifying purchases. Alternatively, a Citi Flex Loan lets you access funds from your Citi credit card’s available credit.

Let’s explore how each program works and when each option may make sense depending on your financial needs.

Citi Flex Loan

With a Citi Flex Loan, you can borrow cash from your Citi credit card’s available credit and pay it back at a fixed interest rate over a set period of time. Your available credit, creditworthiness and other factors help determine if you’re eligible for a Citi Flex Loan.

The interest rate on a Citi Flex Loan is fixed for the duration of your loan, and there’s no application and no credit check.

Once you select the loan amount from your available credit, you can select a repayment schedule that suits your needs. Funds are deposited into your Citi or external bank account in as little as 1 to 2 business days with direct deposit, or you may receive a check in the mail delivered to the address on file in your account. Your Citi Flex Loan monthly payment will be added to the Minimum Payment Due each billing cycle until the loan is paid in full.

If you want to pay more than the Minimum Payment Due, the additional amount generally goes toward balances with higher APRs first. If your Citi Flex Loan has a higher APR than another balance on your account (such as a balance transfer), you may need to pay off your Citi Flex Loan before you can pay down the lower-APR balance. There is no penalty for paying off your Citi Flex Loan early.

Citi Flex Pay

The Citi Flex Pay benefit allows eligible Citi credit cardmembers to split eligible purchases of $75 or more posted to your Citi credit card account into fixed monthly payments to repay over time.

To be eligible for this pay-over-time benefit, your credit card account must be in good standing and below your credit limit. As a current cardmember, you can select the repayment plan that works for you. In addition, if your Citi credit card earns points, miles or cash back, you’ll continue to earn them on credit card purchases just as you normally would. For most Citi Flex Pay plans, cardmembers will pay a fixed monthly fee and no interest.

Once you set up your Flex Pay Plan, your Citi Flex Pay monthly payment will be added to the Minimum Payment Due each billing cycle until your plan is repaid in full. If you choose to pay off your Flex Pay Plan early, there is no penalty.

Additional Citi Flex Pay features

Citi Flex Pay allows you to easily set up flexible payment plans directly at checkout with our partners:

• Amazon: Use Citi Flex Pay on Amazon.com or when paying with Amazon Pay
• Citi Travel^®: Apply Citi Flex Pay directly during your booking on Citi Travel
• Apple Pay^®: Select Citi Flex Pay for in-app or online purchases on your iPhone or iPad
• American Airlines: Choose Citi Flex Pay on AA.com or within the American app

Citi Flex Pay vs. Citi Flex Loan: Key differences

Both Citi Flex Pay and Citi Flex Loan are on-card lending benefits that may be available to eligible Citi cardmembers. However, the key difference is that Citi Flex Pay lets you pay for a purchase of $75 or more over time in fixed monthly payments, with a fixed monthly fee. A Citi Flex Loan allows cardmembers to take a loan from their Citi credit card’s available credit and pay it back at a fixed interest rate for the duration of the loan.

Citi Flex Pay may be a good option for situations where you want to break up purchases into fixed monthly payments. On the other hand, a Citi Flex Loan may be ideal if you prefer to access cash from your available credit.

In each case, as an existing cardmember, you won’t need to submit an application or even undergo a credit check. However, it’s important to understand how each one works to make the most of it.

Choose the right Citi Flex Plan for your goals

Citi Flex Pay and Citi Flex Loan are both flexible ways to use your Citi credit card to make large purchases more manageable.

The right choice depends on your specific financial goals. If you want to pay off a specific item over time, Citi Flex Pay could be the ideal route. For life’s milestones, a Citi Flex Loan may be a better fit. Choose a Citi Flex Loan if you’d rather have funds deposited directly to your bank account or via a paper check mailed to the address on file for your account.

Explore both of Citi’s Flex plan options today to see which one aligns with your needs.

Citi Flex Plan FAQs

Could you cancel a Citi Flex plan?

Once a Citi Flex Pay or Citi Flex Loan plan is set up, it typically cannot be canceled. However, there’s no penalty for paying off your balance early. You may pay off your plan early by paying your full plan or loan balance at any time.

Does Citi Flex Pay impact your credit score?

Setting up a Citi Flex Pay plan doesn’t require a new credit application, so there’s no hard pull on your credit report. Consistently making on-time payments on your Citi Flex Pay plan may have a positive effect on your credit score. However, because the plan uses your existing credit limit, it could raise your overall credit utilization, which may have an impact on your credit score. It’s a good rule of thumb to use less than 30% of your available credit when possible.

What’s the difference between Buy Now, Pay Later and charging your purchase to a credit card?

Buy Now, Pay Later (BNPL) plans typically let you split a purchase into fixed payments over a set period, sometimes with a plan fee or interest rate tied to that plan. A credit card purchase is simply added to your balance, which you can repay on a timeline that works for you as long as you always make your minimum monthly payment. Interest will accrue on your balance until you pay it off.

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.