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Access to Citi ThankYou Rewards
|Rates (APR)||8.99% – 16.49%|
|Loan Terms||1 – 5 years|
|Loan Amounts||$2,000 – $50,000|
|Fees||Origination fee: None|
Prepayment penalty: None
Late fee: None
Citibank started out as the first City Bank of New York in 1812. Since its origin, Citibank has never left its headquarters in New York City, but it crosses international borders with nearly half of its revenues coming from international business. Despite taking a big hit during the housing crisis, Citibank still thrives today offering different financial products and services.
Aside from offering products such credit cards and insurance, Citibank offers personal loans to prospective borrowers for many different reasons. These loan options can all be found online using Citibank’s online services which happens to perform exceptionally well.
Citibank’s Personal Loan Offerings
While personal loans can be offered for various different reasons, there are several requirements that potential borrowers need to fit in order to be considered for a Citibank Personal Loan. Applicants must have a Citibank deposit account, a Citi credit card, or a Citibank mortgage. Any one of these three requirements can be met for eligibility, but there are two more stipulations. Second, there must be a positive balance in the Citibank deposit account, and third, there can only be one pre-existing personal loan with Citibank. On top of these, borrowers are required to have a minimum salary of $10,500.
If these three stipulations are met, then Citibank offers personal loans for many reasons. One of the first cited reasons is to pay off high interest debt with a personal loan; however, borrowers with other plans can still qualify for a personal loan. Citibank personal loans can be taken out for home improvements or a one-time big purchase. There are plenty of good reasons for a personal loan. If you happen to have good credit, then there is a good chance you can qualify.
Personal loans ranging from $2,000 to $50,000 are provided by Citibank. This money is given as a lump sum after qualifying, and it is often received before five business days. Applications for loans of $30,000 or less can be done online, but loans between $30,000 and $50,000 must be done either in person or over the phone.
All loans come with a fixed annual percentage rate (APR) that ranges between 8.99% and 16.49%. These rates are fairly low compared to many different competitors. As a rule of thumb, applicants with better credit receive lower APRs on their personal loans, and loans with shorter payment periods generally get higher interest rates. If a borrower enters default status, then APR increases by 2.0%.
Many different repayment plans are offered by Citibank which give these personal loans a degree of flexibility. There are five different payment plans to choose from: 12, 24, 36, 48, and 60 months (or 2 to 5years). The longer plans tend to have lower interest rates.
If a borrower intends to pay off his or her loan before the payment plan is over, then there is no need to worry about a prepayment penalty. Multiple loans charge this fee for paying everything off early, but there is no need to worry about this with a Citibank personal loan.
Borrowers with a Citibank personal loan gain access to the Citi ThankYou Rewards program. Those who link their Citi checking account with their Citi personal loan for monthly automatic payments receive ThankYou points. These points work in the same way as a standard credit card rewards program. Points are accrued over time, and these points can be redeemed for cash and travel rewards.
The opportunity to enroll in a rewards program is a unique aspect of Citibank personal loans that many other companies do not provide. This feature combined with the payment option flexibility create an attractive financial service that is sure to be the first choice for any Citibank member.
One of the downsides to a Citibank personal loan is its exclusiveness. Since one of the stipulations for acquiring a personal loan involves account membership, many potential borrowers are screened out. This goes hand in hand with the benefits package mentioned earlier; for instance, these benefits are only offered to Citibank account members which explains the exclusiveness of its personal loans.
Another decent benefit of borrowing through Citibank is the online service. Citibank has a good reputation for its online service which covers over 15 million users. Paying the loan through Auto Deduct can even warrant an APR discount on a personal loan.
There are plenty of resources that help borrowers learn about personal finance. There is a financial education page that covers all sorts of financial topics such as money management, insurance basics, investment basics, and more. These resources help borrowers understand the basics of their finances which can be helpful while taking out a personal loan.
Citibank offers a decent deal when it comes to personal loans, but there is one aspect that drags down the service as a whole.
Citibank personal loans come with several flexible payment options that let the borrower make a decision based on his or her financial needs. When it comes to loan amounts, a good range is offered ($2000 – $50,000) which can cover a large range of expenses. The APRs are decent with a maximum APR that is lower than many of its competitors. On top of all this, borrowers can earn points towards a rewards program for paying back the loan which is uncommon for personal loans.
With all this in mind, a Citibank personal loan seems like a great offer with almost no drawbacks, but there is in fact a drawback that deserves mentioning. These personal loans are only available to Citibank account members or credit card holders. This means that these personal loans are a bit exclusive compared to other personal lenders. Other similar products are provided by Chase and Citizens Bank.
At the end of the day, Citibank personal loans are a great offer, but they are limited to Citibank customers only. With that being said, any Citibank client should consider a Citibank personal loan before looking at any other lenders.3.84 Citibank Personal Loans
Author: Jeff Gitlen
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