Citibank also offers a loan program that can be used to meet the various wide ranging needs of their customers. Many people use it to consolidate debts and to pay off older bills, and the interest rate can be as low as ten percent.
While Citigroup, still often called Citibank, does offer a variety of loan programs for customers to choose from if they need a car, mortgage, or other service, unfortunately they only offer one type of unsecured debt consolidation loan product. So in some ways your options are limited and be sure to explore the terms closely.
The bank refers to this as an unsecured personal loan. According to the terms of the loan from Citibank, you can use the money from this product to pay for any of your expenses and financial obligations. Customers do have some flexibility as to what they can do with the funds. They can use the unsecured personal loan to pay off bills or consolidate any of your other credit card debts, regardless of who the creditor is.
There are some conditions to this product, as not everyone qualifies for this unsecured debt consolidation loan. Customers will usually need to meet certain income standards and have a minimum credit score. It is very easy to apply for the debt consolidation loan from Citibank. You can apply thru a third party debt or credit counseling company, in person at a local Citibank Financial Center, over the phone with a customer service representative, or online at Citibank's Website. The application process is fairly simple and quick. If Citigroup approves you for the loan, you can have the funds in your hands in just a few days. In order to complete the application process and receive the loan, you do have to sign and return the deal terms to Citibank in which you are stating that you agree to the terms of the loan, interest rates and repayment schedule. As soon as you receive your funds, you can immediately begin to use the money to improve your overall financial condition. Families use the money to pay their bills, many will pay off all of your other credit card debts, and consolidate your credit cards. Dial Citi at 1-800-374-9700.
While the exact details will depend on your personal financial situation, including such factors as your credit score, you can currently receive a Citibank debt consolidation loan with an interest rate as low as 10%. However terms are always changing and some customers are provided an even lower interest rate. That is much better than what many people are currently paying on their credit cards. Also, the maximum loan may be for $50,000, and the payment terms can be anywhere from 3-5 years. Dial 1-800-995-2274 to learn more.
There are several pros to getting an unsecured debt consolidation loan from Citibank. They should always be weighed against some of the cons, as indicated below. The number one benefit being that an unsecured debt consolidation loan will allow you to consolidate your debts and most importantly, reduce your monthly bill payments. This will only occur if the interest rate on the new loan is lower than your existing obligations. If this is not the case, then you will not want to explore this as an option to consolidate those debts and bills.
In addition, you will only need to pay one bill every month instead of making multiple payments to various creditors and card companies every month. Another big pro is that Citibank offers customers a flexible repayment schedule along with fixed monthly payments, so you have repayment options. You may even choose to have your monthly payments automatically debited from your Citibank deposit or bank account to simplify things even more. Last, but not least, there is no application fee to apply for a Citibank debt consolidation loan. Find other Citi debt assistance programs.
Like all loan products, remember if you are late with your monthly payments on your bills, or if you fail to repay your loan, they may decide to report this information to the three credit bureaus, which can lower your credit scores. But this is true of all banks and loans. While the interest rate tends to be competitive and it will be much lower than what people pay on a credit card, even a rate of around ten percent can be high by some standards. Also, Citibank will charge you late fees, penalties, and maybe even collection costs if you default on your loan.
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