What we like:
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
With over two hundred years of experience, Citibank has had time to cultivate a booming financial business, and today, with a loan portfolio consisting of billions of dollars, the company plays a significant role in meeting the personal financial needs of consumers across the globe.
With such a significant presence in the banking and credit card market, it’s likely that you’ve come across a Citi product at some point, but with so many other loan products available, is a Citibank personal loan right for you?
In this review:
- Applying for a Citibank Personal Loan
- Citi Personal Loan Rates, Terms, Fees and Limits
- Benefits of a Citibank Personal Loan
- Downsides of a Citibank Personal Loan
Applying for a Citibank Personal Loan
Citibank provides three ways for borrowers to apply for loans: online, over the phone, or at a local branch. While borrowers can use any of those methods to apply for a loan up to $30,000, borrowers who wish to borrow a higher loan amount must apply by phone or by visiting their local branch.
All online applications must be completed through a registered citibank account, and applicants who do not have an online account must register for one prior to completing the online application.
Citibank personal loans are available from $2,000 to $50,000 dollars; however, eligibility and the application process depend in part on how much you wish to borrow. Applicants that would like to borrow between $2,000 and $12,500 can do so by utilizing any of the application methods, including the Citibank website. Additionally, borrowers who wish to apply for loans under $12,500 are not required to have a Citibank deposit account.
If, however, you wish to apply for a loan for more than $12,500, you must have a Citibank checking account that has been open and funded for at least thirty days. With a qualifying checking account, applicants that wish to borrow between $12,501 and $30,000 can do so online.
Citi Personal Loan Eligibility Requirements
To be approved for a Citibank loan, you must have an annual income of at least $10,500. Additionally, Citibank also considers a variety of other factors, including the requested loan amount, your credit score, and your debt-to-income ratio. While the lender does not reveal specific requirements or limits regarding these factors, most approved applicants have good or excellent credit.
If approved for a personal loan, funds can be received in as little as one business day, depending on the time of day your loan is approved, how you’d like to receive your funds and your proximity to a Citibank branch. If you’d like to receive funds via mail, or if you don’t live near a branch, Citibank can usually overnight a check.
Citi Personal Loan Rates, Terms, Fees and Limits
If approved for a Citibank personal loan, you can currently expect to receive an interest rate between 7.99% and 17.99%, with a repayment term of up to five years. Interest rates are based on a variety of factors, including your personal credit history, the loan amount, and the loan term. On some occasions, borrowers may receive lower rates if they are Citibank customers and if they choose a shorter repayment term.
Unlike some lenders who occasionally add on a variety of one-time or annual fees, Citibank personal loans do not come with application, origination, or yearly fees, and borrowers are not penalized for early repayment.
In addition to a personal loan, Citibank also offers a variety of similar lending products, though they aren’t considered installment loans. However, borrowers may also want to consider the following products.
Checking Plus Line of Credit
Available for up to $10,000, the Checking Plus Line of Credit is designed to offer Citibank checking customers with overdraft protection, though it can also be used as a traditional revolving line of credit. In order to prevent customers from bouncing checks, this line of credit will cover the overdraft as well as any fees up to the approved limit.
Borrowers are currently charged a variable annual percentage rate between 17.50% and 20.50%, and interest is only applied to the total amount used — not the total amount of credit available.
Custom Credit Line
The Custom Credit Line, which can range from $1,500 to $25,000, is designed to help consumers with major expenses, like home improvements or weddings, as well as debt consolidation efforts. Similar to the Checking Plus Line of Credit, interest is only applied to the existing monthly balance, and borrowers can currently expect variable rates between 10.49% and 22.49%.
Benefits of a Citibank Personal Loan
With a quick online application process, applying for a Citibank personal loan is quite easy, and thanks to the application’s quick turn-around time, once approved, funds (even those sent via mail) can be received as soon as the next business day and typically within at least 48 hours.
Additionally, with a $50,000 maximum loan amount for existing Citibank customers, some borrowers may find that a personal loan through Citibank will grant them access to more funds when compared to personal loan products offered by other traditional lenders, such as PNC. PNC personal loans have a limit of $35,000. Similarly, with a $2,000 minimum loan requirement, Citibank also may be a good option when compared to other options, like Citizens Bank personal loans, which requires a $5,000 minimum loan amount.
Also, with no origination, application, or annual fees, some borrowers may find that rates, though not ultra competitive, end up being more affordable if compared to lenders that do charge an array of fees.
Downsides of a Citibank Personal Loan
Though prime applicants can receive lower rates on loans, when compared to some other lenders, Citibank doesn’t always offer the most competitive rates. For example, prime borrowers may be able to currently secure a 6.99% interest rate with a Wells Fargo personal loan, and PNC customers can potentially lock in rates as low as 4.99%.
Furthermore, while some borrowers may not find a significant difference in rates and terms, one thing that may be a deal breaker is Citibank’s BBB rating, which is currently an “F.” Many customers suggest that there is a deep-rooted customer service issue that results in poor or inconsistent information or problems and concerns that go unaddressed, both during and after the application process.
Finally, if you aren’t a Citibank customer and need to borrow more than $12,500 or need funds immediately, the thirty-day, funded account requirement may prove to be problematic. The same is true if you would prefer to have your funds delivered electronically, an option that is limited.
If you’re an existing Citibank customer with excellent credit and you need a loan fast, Citi has potentially competitive rates and can originate funds quickly.
However, potential applicants should shop around and compare the best personal loans, as lower rates do exist. Further, before committing to this loan, customers should also consider Citi’s frequent poor customer reviews.
Author: Jennifer Lobb
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