Personal and consumer loans are quite handy when it comes to tidying up the budget. It also provides some cash flow relief for those moments where life throws a curveball. Carefully managed loans are an asset to consumers and will allow them to meet their personal goals or achieve their objectives. Citibank loans provide consumers with loans that are well structured. This review takes a closer look to determine whether the loans perform well on a global scale.
A bank that offers one of the biggest ranges of personal loans we've come across thus far, is Credit Agricole.
This bank is known as one of the dark horse of the banking world. It is working hard to regain a good reputation and today, almost ten years after the subprime mortgage crash it seems as though it’s winning the battle. But this was not the only time in history where the bank needed to reclaim its reputation.
The bank was founded in the early 1800s and provided financial services to a private individual at first. Once established, it then expanded operations until it became one of the biggest financial institutions in New York. Then, at the onset of WWI the bank, like many other financial institutions at the time, was tasked to boost the economy. This became one of the biggest financial blunders for the bank as investments from an unscrupulous chairman at the time resulted in what is known as Black Tuesday. This was also the onset of the Great Depression and cast the bank in a very bad light.
It managed to pick itself up again after WWII as it helped boost manufacturing efforts. Over the next few decades, mergers and acquisitions helped the bank firmly root itself in the US and across the world.
We also did a full review on one of Citibank's competitors: Bank of America.
Important Things To Remember When Taking Out a Loan
Many critics believe that it’s simply too easy to take out a loan these days, and financial advisers are inclined to agree. Default rates on loans are an indication of this. For the consumer, it is a very stressful period in their lives when they experience financial difficulties and avoiding it is key to ride out financial storms.
Only Apply For A Loan When It Satisfies A Need
One of the biggest reasons consumers find themselves in over their heads in debt is because they take out loans to satisfy wants. Before they know it, they have no disposable income to pay for the things they need, which leads to further debt. It’s important that consumers are able to identify their needs and wants before considering finance at all.
Choose The Shortest Term Possible
The installment plays a big role in a budget and if the finance is stretched over a long period, it could end up costing a lot more. This is especially true for personal loans where the loan amounts are often higher than many other loans. Take the shortest period possible to avoid paying too much interest.
Shop For Rates
Although there may be many things in your favor when it comes to applying for finance with a regular institution, these things may not be enough to negotiate a good rate. Customers are encouraged to shop around to find out which institution offers the best rates and service fees. Sometimes the rates are more favorable and sometimes the interest rates are.
Allow A Breather Between Loans
Although it’s tempting to re-apply for finance once a loan has been paid, it can also cause quite a reliance on debt to get projects done. Instead, try to put at least a portion of the installment previously paid into a savings account to build up a nice safety net. Once the reliance on loans become less and less, the customer can focus on building wealth instead.
Citibank Loans Product Offerings
This is a great option for those who do a number of transactions throughout the month, however, only receive payment in the account once a month. Furthermore, it allows customers to safely go into a negative balance without incurring penalties or having their items returned.
- Customers have access to a revolving credit line to use as and when they need.
- This is the ideal product for those who require the safety of overdraft protection.
- The overdrafts are available at variable interest rates.
- Citigold and Citi Priority have their overdraft protection fees waived. However, the Citibank Account Package and Basic Banking Package have a $10 overdraft protection fee.
- This facility provides customers with a ton of convenience. The minimum payment is automatically deducted each month from the checking account.
- Also, the facility immediately covers checks and debits up to the limit to ensure payments don’t get bounced.
- Finally, customers are required to meet the minimum criteria.
Custom Credit Line
This is the ideal option for customers who may need access to funds from time to time. Furthermore, customers can apply for the finance now to use at a later stage.
- Customers can use the finance for everyday expenses or major expenses.
- Furthermore, this provides customers with cash without having to pay cash advance fees.
- The loan is suitable for those who have ongoing planned borrowing needs.
- There are certain qualifying criteria such as a Citibank deposit account balance of $500 and more.
- Also, the loan type offers a convertibility feature.
- The loan amounts range anywhere between $1,500 and $25,000.
- The APR payable on the loan is variable and may differ from state to state.
- Finally, customers have various options to make payments. These include in-person at branch, mailing a check, Citibank online, ATMs, and Auto Deduct.
Customers who wish to take out finance for a specific event or item should consider this product. It provides a one-off deposit and customers can then make repayments on a monthly basis.
- This is the ideal product for those who enjoy a fixed rate and fixed monthly payments.
- Furthermore, the loan amounts go up to $50,000.
- Customers who wish to apply for a personal loan with Citibank may only have one personal loan. Also, the loan cannot be younger than 6 months.
- There is an annual income requirement to apply for the loan.
- Customers enjoy a fixed rate based on their creditworthiness.
- The loan also provides customers with access to relationship rewards.
- Finally, those who wish to apply for loan amounts under $30,000 can apply online.
Those who prefer to save up for their purchases should take a look at the selection from Citibank.
What We Like About Citibank Loans
Citibank provides customers with a variety of finance options to get things off the ground. This includes the option for a fixed repayment for those one-off needs and access to revolving credit. Customers don’t have to take a one-size-fits-all approach to finance, which means they are in a far better position to budget effectively.
Another aspect of the loans we enjoy is the fact that customers can apply for quite a high loan amount. This will allow them to fill a substantial hole in their budget. They may also have the opportunity to complete one or more projects in and around the house.
Finally, these loans are available to quite a large group of customers, as the minimum annual wage requirement is fairly low. This allows many customers to make the most of their finance and get to the next step along their financial journey.
What We Don’t Like About Citibank Loans
The pricing on these loans is pretty rough. In fact, the pricing is pretty close to the APR charged on credit cards. This will open the door to other institutions to swoop in and offer better rates at the drop of a hat.
Once again, an issue with Citibank that seems to be a recurring one, is the fact that we’re having a hard time locating the pricing of the loans. There is no way to tell whether there are other fees applicable to the loans, such as contract fees or monthly service fees.
Finally, the minimum loan amount is quite high, which means those who need smaller amounts will have to look at a credit card to fill the gap.
Critical Reviews Rating Citibank Loans – 7 of 10
Citibank has the potential to walk away from these reviews with full points, however, tend to fall short around every bend because of transparency. Customers want to know that their needs are covered and they won’t have to take out another loan to finance the costs of it.
The other reason we’ve had to shave a point off the top was due to the high interest rates. Those who are willing to shop around will come across incredible interest rates and favorable terms. This will undoubtedly lure customers to other institutions and possible also expose them to better deals on other products as well. Not a safe move for Citibank at all.
In order for Citibank to enjoy full ratings, they would need to address the rates, accessibility, and transparency. Overall, these are terrific loan products with tremendous potential that merely just need a bit of polishing.
Those who want a credit option that is a little more flexible should consider the Credit Cards from Citibank.