Wells Fargo Flex Loan Review

Flex Loan pros

Flex Loan cons

Unlike small-dollar loans from other banks, there’s no application for Wells Fargo’s Flex Loan. Preapproval doesn't require a credit check, but there may be a hard credit check when you accept the offer.

You can check if you’re eligible for a Flex Loan by signing into the bank's mobile app. Although Wells Fargo doesn’t disclose its qualification criteria, your relationship with the bank likely plays a role. Maintaining a positive account balance and making regular deposits could help you get preapproved.

Once you accept the loan, the funds will be available in your Wells Fargo account within seconds, according to the bank. The repayment plan is four monthly installments, which you can make through automatic payments or online transfers from your Wells Fargo account.

» MORE: Wells Fargo traditional personal loan review

Wells Fargo Flex Loan costs

The Flex Loan carries either a $12 or $20 fee, depending on the amount you borrow. This is the total cost to borrow, or annual percentage rate, based on the loan amount, with the smaller loan charging more.

For example, if you borrow $250, the loan carries a 22.82% APR. If you borrow $500, it will have a 19.05% APR.

A Flex Loan is much cheaper than a payday loan, which can have an APR of almost 400%. The four-month repayment term is also longer than the two-week repayment term most payday lenders offer.

There are also no fees for late payments.

Loan example: A $250 loan with an APR of 22.82% repaid over four months would carry:

How Wells Fargo Flex Loan compares

Even at the $250 amount, Flex Loan’s APR doesn’t exceed 36%, which is the maximum APR a loan can have to be affordable, according to consumer advocates.

But you may have more flexible options with other banks. For example, Bank of America’s Balance Assist loan and U.S. Bank’s Simple Loan let you borrow only what you need, up to $500 or $1,000, respectively. Both have shorter repayment terms of three months.

A small-dollar loan from either of these banks could also be cheaper, depending on the amount borrowed, but you need to be an existing customer to be eligible.

Another option is a personal loan from a credit union. Credit unions offer small loans, and interest rates may be lower for borrowers with fair or bad credit (credit scores between 300 and the low 600s) compared with other lenders. You’ll need to become a member before applying.

Online lenders also offer personal loans, but rates may differ depending on your credit score. These loans typically start at $1,000 and are often funded the same or the next day after approval.

» COMPARE: Best bad-credit online loans

Wells Fargo Flex Loan isn't a good idea if

Alternatives to Wells Fargo Flex Loan

Here are alternatives that may be cheaper than Flex Loan.