Flexible Loans

Borrow as much as you want, whenever you want it

Flexible loans give you the advantages of a credit card without the scary interest rates – but you'll still pay more for your borrowing than with a traditional repayment loan. However, flexible loans are a good solution for people whose income or expenditure tends to have peaks and troughs.

Many lenders offer flexible loans, which work in roughly the same way as a credit card: the lender sets a limit and you can borrow as much or as little as you need, whenever you need it; you can pay back as much or as little as you can afford, as long as you pay a certain amount each month.
Flexible loans are particularly useful if you have unpredictable income or expenses, because you can pay more when you're loaded and less when you're broke. However flexible loans have two key disadvantages: the interest rates are higher than normal repayment loans, and it's always tempting to think "hey! Free money!" and run the loan to its limit by spending it on things you don't really need.
Flexible loans are best described as a cross between an overdraft and a credit card, but it's important to consider the alternatives, too. For a specific purchase a normal repayment loan might be a better – and cheaper – option.

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