Debt consolidation loans from Citibank.
Citibank offers a personal loan that is intended to help people consolidate their debt(s) or in some cases the money can be used to meet the various wide ranging financial needs of their customers. The funds are only for existing or newly signed up customers of Citi. The debt consolidation loans only have a soft credit check and tend to have very competitive interest rates. Learn more on loans from Citibank to help consolidate other debts or financial obligations.
As with any loan, including personal loans to consolidate debt, be sure to explore the terms closely. The bank refers to this product as an unsecured personal loan. Citi customers do have some flexibility as to what they can do with the funds as they can use the unsecured personal loan to pay off bills or consolidate any of their other credit card debts, regardless of who the creditor is.
How do I apply for a Citibank debt consolidation loan?
There are some conditions to this product as of course 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 using one or more of the following.
- Thru a third party debt counselor or credit counseling company,
- In person at a local Citibank location
- Or over the phone with a customer service representative, or online at Citibank's Website. Dial Citi at 1-800-374-9700
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 business days and sometimes the same day as applying. In order to complete the application process and receive the loan, you do have to sign and return the deal terms to Citibank confirming your financial obligation to pay back the funds.
As soon as you receive your funds, you can immediately begin to use the money to improve your overall financial condition. The lender may also help people find other Citi debt assistance programs.
What are the Citibank debt consolidation loan terms?
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 $30,000, and the payment terms can be anywhere from 3-5 years.
Comparison of Citi with other lenders
While Citi offers competitive features from a personal loan, which can be used to consolidate debt, other banks as well as online lenders may provide higher loan amounts or more flexible terms. For instance there are options such as the following. This is why it is always imperative to shop around.
- LightStream: Offers loans up to $100,000 with APRs starting at 6.49% depending on the applicants FICO score.
- SoFi: Provides unsecured personal loans, which borrowers can use to pay any bills include debt, of up to $100,000 with APRs ranging from 8.99% to 35.49%.
We also have listed many other products and loans for people to explore - ranging from peer to peer to secured loans, lenders focused on low-income families and more. Find details on loans for low income families.
What are the pros to personal loans to consolidate debt?
There are several pros, however the benefits should always be weighed against some of the cons, as indicated below.
- Citi will offer interest rate discounts for existing customers. While any customer can get a lower interest rate on a debt consolidation, the biggest benefits go to Citigold and Citi Priority who will customers receive a 0.25% interest rate discount.
- Or course you may even choose to have your monthly payments automatically debited from your Citibank deposit or bank account to simplify things even more. Additionally, enrolling in autopay can earn borrowers a 0.50% APR discount.
- Citi tends to limit fees for most loan applicants. Citi personal debt consolidation loans come with no origination, prepayment, or late fees, which can result in significant savings over the life of the loan.
- Another big pro is that Citibank offers customers a flexible repayment schedule along with fixed monthly payments, so you have repayment options.
What are the cons to this Citi loan when consolidating debt?
Like all loan products, remember if you are late with your monthly payments, or if you fail to repay your loan, Citibank will report this information to the three FICO credit bureaus, which can lower your credit scores. But this is true of all banks and anytime anyone borrows money. There will also be late fees that kick in after 60 days or so.
Citibank also has does not allow a Co-Signer. This can limit access to their unsecured debt consolidation loans for people with lower credit scores as many of those applicants tend to use a cosignnor to borrow more.
While the interest rate tends to be competitive and it will often be much lower than what people pay on a credit card, even a rate of around ten percent can be high by some standards.
Applying
As noted above, there are a way ways to contact the lender to explore these loan products or others. The main phone number is 1-800-374-9700 with more information at the Citibank learning center here. https://www.citi.com/personal-loans/learning-center.
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