If you’ve found yourself sinking in debt, there’s a chance you could obtain relief through a debt consolidation loan. While various banks and credit unions offer this type of loan, each one comes with its own unique terms and interest rates.
What is an unsecured debt consolidation loan?
An unsecured debt consolidation loan does not require putting up an asset. On the other hand, with a secured loan, you put up the property the loan is covering – like a home- or another high-valued item that serves as collateral for the lender should you fail to pay.
A personal loan
While Citibank offers a variety of home loan programs, it only offers one type of unsecured debt consolidation loan—a personal bank loan. This can be used to consolidate all your unsecured debts, leaving you with one monthly payment versus the four, five or even more you may currently be juggling.
According to their website, loan amounts range from $2,000 to $30,000 with fixed rates of 9.99% to 23.99% APR. In addition, you have the option of choosing your repayment timeline—loan terms include 12, 24, 36, 48, or 60 months.
Qualifications
If you choose to get an unsecured personal loan from Citibank, the following is required:
- Must be at least 18 years old
- An annual income of at least $10,500
- Must have an eligible Citi deposit or eligible Citi credit card account open for at least one year
- Cannot have more than one open Citibank personal loan, which must be at least six months old
There is a “Catch 22” when it comes to being approved for a personal loan. The deeper you’re in debt and the more you need the loan, the less likely it is that you will qualify for one – unless you’re willing to pay a high interest rate.
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How to get an unsecured loan from Citibank
You can apply for a Citibank personal loan either in person at your local Citibank Financial Center, on the phone, or online at Citibank’s website.
The application process is quite simple and, in most cases, you can access the money within a few days. Then you can immediately pay off all those crushing credit card debts and consolidate them into a new loan at a lower interest rate. Consider setting up automatic monthly payments to ensure you make that one payment on time, every time.
The benefits of a debt consolidation loan
There are several important benefits to getting a debt consolidation loan. First, you can lower your monthly payments as these loans generally come with a much lower interest rate –especially credit card debts, which can charge interest rates as high as 18% to 29%.
Secondly, you could stretch out your payments over more years. In the case of credit card debt, you will likely need to pay off those cards within two to three years. However, you have up to five years to pay back your Citibank personal loan.
In summary
Here are Citibank’s personal loan details at a glance:
Features:
- Loan amounts from $2,000 to $30,000
- Fixed rates of 9.99% – 23.99% APR
- Submit your application online and get a response in less than 60 seconds
- Once approved, you can have the funds deposited into your Citi account the same day
- You can repay your loan over 12, 24, 36, 48, or 60 months.
Benefits:
- Fixed monthly payments
- Quick access to your funds
- Simple application process
- By setting up monthly payments with Auto Deduct at the time of origination, you can qualify for a lower rate and simplify the repayment process
Requirements:
- Yearly income of at least $10,500. You are also required to satisfy Citi’s creditworthiness criteria.
- Have an eligible Citi deposit account open for at least twelve months
- You may have one other Citibank Personal Loan open at the time of application, as long as it has been open for at least 6 months.
A word of warning
It’s important to understand that if you are late with your monthly payments or you can’t pay back the loan. And if you default on your Citibank loan, you would be responsible for late fees, collection costs, and other costly penalties.
If you’re struggling with credit card debt, you might want to consider enrolling in a debt settlement program. A respected company like National Debt Relief can help you get back on your feet in as little as 24-48 months.
National Debt Relief helps people nationwide resolve $10k or more in unsecured debt. Our debt coaches negotiate with creditors on your behalf so that you pay a fraction of what you owe and can become debt free in as little as 24-48 months.
