Flex credit: the bank revolving credit.
Flex credit is the revolving credit of Carfo bank. It gets its name from its flexibility. It offers different options to the client in order to adapt to their needs. Find out more about the product’s features and how revolving credit works.
Flex credit in detail
Characteristics of the Flex credit product
- amount: from credit $ 500 to $ 3000
- 4 repayment periods: 6, 12, 24 or 36 months
- no need to justify the reason for the small credit request to obtain it
- partial or full prepayment possible at any time without penalty
- possibility to modify monthly payments
- monthly break possible up to twice a year
The advantages of Flex credit
Once Flex Credit is purchased, it is very easy to carry out day-to-day transactions. In fact, in addition to the usual services such as the internet customer area and telephone customer service, Carfo bank provides Flex credit customers with a web application making it easier to manage the product.
With this application, you can view your available balance, these refunds and even make transfer requests if the available cash envelope allows. However, it is not yet possible to modify your monthly payments or request a payment break directly via the application.
To carry out these operations, it is necessary to call an adviser or go to one of the group’s agencies. The application is simply called “ Carfo bank ” .
Unfortunately, by offering a dedicated application, Carfo bank is still an exception, since few banks and specialized credit organizations offer a web application to manage their revolving credit online. In fact, according to Carfo bank, 97% say they are satisfied with their customer space. In order to get a better idea of the bank, discover our article on Carfo bank reviews.
Flex credit: borrower insurance
For all consumer credit, borrower insurance is optional . It can be taken out in conjunction with the opening of Flex credit. It may also be taken out later if no guarantee covered by this insurance is current. Flex credit borrower insurance covers the following five events :
- Total and irreversible loss of autonomy
- Total incapacity for work
- Job Loss
- Failure to collect support payments.
If one of these events occurs, all or part of the remaining monthly payments will be covered by the insurance. The borrower will no longer have to repay his credit during this delicate period. Note that the guarantee on the failure to collect support payments is rarely included in revolving credit insurance, it is also an advantage of Flex credit.
The cost of insurance is nevertheless quite high because it corresponds to a percentage of the amount remaining to be reimbursed. It also depends on age:
- up to age 65: 0.63% of end-of-month outstandings
- from 66 to 80 years old: 0.80% of the end of the month
Flex credit: rates
The benchmark indicator of the rate communicated in the context of a consumer credit is the APR for Annual Effective Total Rate. The latter includes all costs related to credit: credit charges + any administrative fees. However, it does not incorporate all of the costs associated with borrower insurance. The latter is nonetheless optional. The specificity of Flex credit is that the APR is revisable . That is to say that with each new use (request for transfer of money to his account), the APR may change. It will therefore be necessary to be attentive to the proposed rate.
The rates for this small loan are easy to assimilate because they depend on the repayment duration chosen. As of April 23, 2018, here are the revisable APR in force:
|Repayment period||Revisable APR|
These rates may seem important at first glance, but they are the standards in revolving credit and / or for a small need for money.
How to purchase Flex Credit
Flex credit: in which case to subscribe?
Flex credit is revolving credit. As such, its operation is identical to this product family. Concretely, once Flex credit has been granted, a sum of money is made available to the customer on his Flex credit. All or part of this amount can be used at any time by the customer who can request to obtain the desired amount on his bank account via a transfer. Flex credit is replenished as and when repayments, it is therefore possible to make several requests for use.
Revolving credit without proof of use is badly criticized, and the legislation is very clear about it. Many consumer protection laws are in place in the area of consumer credit. The main reason is that the rates as well as the monthly payments and the repayment terms could be scalable, which makes it more difficult for customers to understand the product.
In addition, the rates are particularly high. Nevertheless, the product can have an interest, in particular to face unforeseen expenses or some punctual purchases. Despite a regularly high rate, it allows smoothing repayments on small monthly payments .
Flex credit: the subscription stages
To subscribe to Flex credit, two solutions are available to the customer, either by visiting one of the group’s agencies (mainly present in Carrefour hypermarkets), or directly online. Whichever choice is made, the steps to be carried out will be identical.
Step 1: define your need
The first step is of course to define your need. We must therefore be able to answer the following two questions:
- how much do i need?
if the desired amount is greater than a $ 3,000 credit, Flex credit will no longer be the appropriate product. It will therefore be necessary to opt for a personal loan or a work loan or a car loan depending on the project to be financed. Carfo bank offers the whole range of consumer credit.
- what monthly payment am i ready to pay back each month?
The higher the monthly payment, the shorter the repayment period and therefore the lower the cost of credit. However, it is necessary to take into account its repayment capacity so as not to have to pay an excessive monthly payment. In this case, the latter could penalize your daily life.
Carfo bank offers a Flex Credit simulator which makes it possible to obtain the APR of the credit as well as the cost of the credit by defining the amount requested as well as the monthly payment or the repayment duration.
Step 2: complete your credit agreement
Like any credit organization, Carfo bank needs to know more about the borrower in order to ensure its repayment capacity. The borrower will then have to fill in his contact details (name, first name, email, telephone), his personal situation (family situation, owner, etc.) as well as the household’s income and expenses. Once the file is filled, the client will get a response in principle, either it is accepted or it is not. If the application is refused, the procedures will stop there with Carfo bank.
Note that each lender has its own criteria for accepting credit. Being refused at one, will not necessarily lead to a refusal at another. It is therefore important to compare the offers.
Step 3: Sign and send the contract
This is the final subscription step, the client will have to print the contract or wait to receive it by mail, reread and sign the contract. He must then send it back by post with the supporting documents requested. The list of credit documents is generally:
- photocopy of an identity document: identity card or passport
- photocopy of proof of address less than three months old
- latest pay slip
- photocopy of tax assessment
Once the contract has been returned, the customer will receive final acceptance from Carfo bank if all the elements are in conformity. He must wait until the end of the legal withdrawal period (14 days or 7 days under conditions) before being able to access the Flex credit money reserve. The customer can therefore borrow his Flex Credit money reserve as he sees fit.