Citi® Flex Pay vs. Credit Cards

Key insights:

• Citi^® Flex Pay is a benefit that allows you to break up eligible purchases on eligible Citi credit cards into fixed monthly payments
• While credit cards offer revolving credit with ongoing flexibility, Citi Flex Pay is a Citi benefit that lets you pay off a specific purchase in installments without an application or credit check
• Choosing between Citi Flex Pay and regular credit card payments depends on your budget and your need for payment flexibility

When you pay with a credit card, you’re borrowing money from a bank or lender to cover a purchase. Typically, if you don’t repay what you borrowed within the grace period, you’re charged interest. But many credit cards today also offer fixed installment financing options such as Citi^® Flex Pay. These short-term loans divide eligible larger purchases into smaller monthly payments and are available directly through your Citi credit card account. Let’s take a closer look at Citi Flex Pay vs. credit cards.

What is Citi Flex Pay?

Citi Flex Pay is a unique benefit for eligible Citi cardmembers that allows you to convert a qualifying large purchase into an installment plan directly from your online dashboard or through the Citi Mobile^® App. It’s a simple, flexible way to split qualifying purchases into fixed monthly payments and pay over time using your eligible Citi credit card.

How does Citi Flex Pay work?

Using Citi Flex Pay is simple:

1. Select an eligible purchase: After making a qualifying purchase with your eligible Citi credit card, you can find it on the Citi Mobile App or Citi^® Online. Select the specific transaction you wish to convert to a Flex Pay plan.
2. Choose a payment plan: Review the available payment plans and choose the one that works for you — no application or credit check required. You’ll know exactly how much you’ll pay each month.
3. Confirm your payment plan: Confirm your Flex Pay Plan, and your new fixed monthly payment will be added to your minimum payment due. If your card currently earns points, miles, cash back or rebates on purchases, you’ll continue to earn these just as you normally do. 

With the flexibility of a Citi Flex Pay plan, you can pay over time while still earning your points, miles, cash back or rebates. Unlike other pay-over-time services, this feature doesn't change how your credit card works or require a new application. Instead, you're simply creating a structured repayment plan for a qualifying purchase you've already made with your eligible Citi credit card, giving you more control as to how you pay for your purchase.

Citi Flex Pay is also accepted at a wide variety of in-app and online retailers in the United States when you shop with Apple Pay.

What’s the difference between paying for purchases with Citi Flex Pay versus credit cards?

Citi Flex Pay is a benefit that allows you to split qualifying purchases on eligible Citi credit cards into fixed monthly payments. Here are some key differences to understand between paying for expenses with Citi Flex Pay and using traditional credit cards:

Pros and cons of Citi Flex Pay

Like any payment method, it’s important to understand the advantages and disadvantages of using Citi Flex Pay.

Pros of Citi Flex Pay

• Flexible: Citi Flex Pay offers multiple options for the length of the loan and how much you may expect to pay each month.
• Quick approval: Citi Flex Pay requires no application or credit check, so loans may be approved during the checkout process or in just a few minutes when you select an eligible purchase online.
• No interest: Citi Flex Pay features no additional interest. Instead, a fixed plan fee is applied, allowing you to break eligible big purchases into predictable monthly payments.
• Continue to earn rewards: If your Citi credit card earns points, miles, cash back or rebates you will continue to earn them as normal with your Citi Flex Pay plan.

Cons of Citi Flex Pay

• Potential credit impact: Citi Flex Pay is a benefit on your eligible Citi credit card that lets you split a qualifying purchase into fixed monthly payments to be repaid over time. The purchase amount converted to a Flex Pay plan remains part of your existing credit card balance, which can increase your credit utilization. If your credit utilization is too high, it may negatively impact your credit score. Missing payments (including Flex Pay installments) may also negatively affect your credit score. However, consistently making on-time payments can contribute to a positive payment history.
• Higher minimum payment: Each Citi Flex Pay payment plan is added to your minimum monthly payment due, which increases what you pay each month. Always ensure you’re comfortable paying more than the minimum before starting a Citi Flex Pay plan. You may always pay off a Citi Flex Pay plan in full with no prepayment penalty.
• Plan Fee: Your Plan Fee is the fixed fee you’ll pay each month while you have an active Citi^® Flex Pay plan. While it isn’t an interest charge, it still represents a larger amount than the original cost of the financed purchase.

Pros and cons of credit cards

Citi Flex Pay is a benefit of your eligible Citi credit card that lets you split a qualifying purchase into fixed monthly payments to be repaid over time. It’s important to understand the overall advantages and disadvantages of using a credit card.

Pros of credit cards

• Simple monthly bill: Every purchase you make with your credit card is listed on your monthly statement, helping to make it simple to keep track of your spending.
• Rewards and perks: Some credit cards offer additional perks like airline miles to help pay for travel, points that can be redeemed for statement credits or other bonuses like travel insurance just for using the card.
• Helps build credit: Using your credit card responsibly by watching your debt-to-income ratio and avoiding carrying a balance may improve your credit score.

Cons of credit cards

• Interest payments: Carrying a balance month-to-month may result in having to pay interest on your purchases. Interest accumulates over time. Be sure to read your credit card’s terms and conditions to understand how much you can expect to be charged.
• Credit check required: Banks and lenders will perform a hard credit check when you apply for a credit card, and approval is not guaranteed.
• Credit limits: Credit cards come with limits on how much you can spend, which may prevent you from making purchases depending on your spending habits.

Pay the way that works for you

Citi credit cards offer you the flexibility to pay in a way that makes the most sense for your financial situation. It may not make sense to convert everyday purchases like gas and groceries into a Citi Flex Pay plan. However, if you have a major, unexpected purchase like a new computer or furniture, Citi Flex Pay gives you the option to break it into multiple payments without incurring the regular credit card purchase APR. Having the option helps you shop smart, no matter what you’re buying.

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.