Updated
May 09, 2023 Key points:
- Citizens Bank is a solid option if you prefer to take out a personal loan from an established, brick-and-mortar bank.
- You must earn at least $24,000 per year to be eligible
- Borrowers can earn an interest rate reduction of up to 0.50%.
- Online lenders may offer both lower minimum and higher maximum loan amounts.
What we like:
Great customer service
| Rates (APR) | 6.79% – 9.06% |
| Loan Terms | 3 – 7 years |
| Loan Amounts | $5,000 – $50,000 |
| Fees | Origination fee: None Prepayment penalty: None Late fee: 5% of monthly past due |
With roots dating back to 1828, Citizens Bank has been around for quite some time. They may have started as a small local bank, but today they have billions of dollars in assets and 1,150 branches serving the needs of consumers across the nation.
Though checking and savings accounts comprise a large portion of their business, today the bank offers a variety of other products and services including investment planning, credit cards, educational financing, auto loans, mortgages, and of course, personal loans.
This Citizens Bank personal loan review will review your options so you can decide if a Citizens Bank loan is right for you.
In this review:
- Citizens Bank personal loans: At a glance
- Pros & cons of Citizens Bank loans
- How to get a Citizens Bank personal loan
- Where to find Citizens Bank loan alternatives
Citizens Bank personal loans: At a glance
| Citizens Bank Personal Loan | |
| Loan amounts | $5,000 – $50,000 |
| Term length | 36 – 84 months |
| APRs | 6.77% – 20.86% |
| Fees | $0 annual fee $0 origination fee $0 late payment fee $0 prepayment fee |
| Rate reductions | 0.25% autopay rate reduction 0.25% loyalty rate reduction |
| Minimum annual income | $24,000 |
A personal loan through Citizens Bank can offer you the financial support necessary to pay for the unexpected, like home repairs or medical expenses, as well as the expected, like wedding expenses, vacation financing, or other major purchases.
A Citizens Bank personal loan can also help with debt consolidation, potentially securing lower rates and more affordable payments.
Citizen Bank’s rates and terms are based on a variety of factors, but borrowers can currently expect a fixed annual percentage rate between 7.98% and 16.23%. Citizens also offers flexible repayment options by allowing borrowers to select a loan term of three-, four-, five-, six-, or seven-year.
When it comes to additional fees, Citizens Bank customers will be happy to find that there are no prepayment or origination fees, making this a fee-free loan as long as you don’t allow your loan to go into default.
Pros & cons of Citizens Bank Loans
Pros
- Citizens Bank offers a rate quote that doesn’t impact your credit score; you can quickly find out how much your loan will cost and compare it with other potential lenders on your list. More and more lenders are starting to offer this feature, but some still don’t, requiring consumers to apply and undergo a hard credit pull to have any insight on a personalized interest rate.
- You can select a long loan term of up to seven years, which can help lower monthly payments and make loan repayment more manageable.
- Borrowers may also find they can secure lower rates by leveraging two Citizens Bank personal loan discount options: The Loyalty Discount (for existing customers with eligible checking, saving, or money market accounts) and the Automatic Payment Benefit. Together, these can result in a 0.50% interest rate reduction.
Cons
- When compared to other bank loans, Citizens Bank offers loans at standard, if not competitive rates.
- Additionally, though Citizens Bank does extend loans to borrowers across the nation, some borrowers may be prohibited from utilizing the Loyalty Discount, as savings and checking accounts, two of the eligible accounts, are only available in CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI, and VT.
- Similarly, borrowers who prefer to do business in a physical branch location may find that Citizens Bank doesn’t meet their needs if they live outside of the above states.
Getting a Citizens Bank Loan
If you’re considering a Citizens Bank personal loan, you’ll want to head over to their website where you can obtain a personalized quote. This quote will give you a good idea of the rates and terms available to you, so you can compare them to loans from other lenders.
To obtain this quote, Citizens Bank will run a soft inquiry into your credit report, which means it will not impact your credit score.
Note that in some states, Citizens Bank issues loans through its national lending arm, Citizens One. If during the application process you’re funneled to a Citizens One personal loan, you’re still getting the same loan from the same bank.
Should you decide to proceed with your loan application, you can do so online, over the phone, or by visiting a local branch.
What you need to apply
The loan application process is straightforward, and you can complete it online in just a few minutes. To be eligible, you must be able to show proof of regular employment with a minimum yearly income of at least $24,000.
Additionally, though Citizens Bank doesn’t specify a minimum credit score, borrowers must have what they consider to be a “reasonably strong credit history.”
As such, those with good or excellent credit scores, minimal late payments, and no bankruptcies are more likely to be approved for a personal loan through Citizens Bank.
If approved, borrowers can expect to receive funds in as little as two business days.
>> Read more: What Credit Score Do You Need for a Personal Loan?
Where to find Citizens Bank alternatives
If you’re an existing Citizens Bank customer looking for a loan, a Citizens Bank or Citizens One personal loan may be the right choice for you. This is particularly true if you can leverage two of the bank’s discount opportunities, which can help you secure a 0.50% interest rate reduction.
However, while Citizens Bank offers competitive loans, some borrowers may be able to secure lower interest rates through other lenders. Check out our list of the best personal loans to see some other options. We recommend getting quotes from at least three lenders before choosing one.