Citibank Personal Loans Review (original) (raw)

Our Thoughts on Citibank Personal Loans

MarketWatch Rating: 4.1 out of 5 stars

Citibank, or Citi, offers personal loans to new and existing customers. Borrowers can use them to consolidate debt, cover emergency expenses or make large purchases.

A Citi personal loan doesn’t have the most competitive rates or the most flexible loan terms, but it could be a suitable option for existing Citibank customers. If you don’t already have a bank account with Citi, you’ll need to open one before applying. The company offers multiple discounts that could make it a viable loan option if you need money fast.

The lowest annual percentage rate (APR) on a Citibank personal loan is high at 8.99%, compared to lenders like SoFi and PenFed, which serve borrowers with similar credit profiles. Citibank doesn’t allow co-borrowers or co-signers, making it harder for applicants with low to no credit to qualify.

Citibank personal loans come without prepayment penalties, late payment fees or origination fees. Borrowing options, however, are limited to between 2,000and2,000 and 2,000and30,000 — less flexibility than the 5,000to5,000 to 5,000to100,000 offered by LightStream, for example.

Pros and Cons of Citibank Personal Loans

Consider these pros and cons of a Citibank personal loan to decide if it can help you reach your financial goals.

Pros

Prequalify without impacting your credit score

No fees

Multiple rate discounts, including 0.5% for using autopay and 0.25% for existing Citigold and Citi Priority customers

Cons

Must be a Citibank customer to get the best rates

Co-applicants are not allowed

You can’t use it to consolidate Citibank credit card debt

Who Are Citibank Personal Loans Best For?

Existing Citi customers looking to borrow a smaller loan amount may benefit most from this personal loan. All Citibank customers receive an interest rate discount for automatic payments. Citigold and Citi Priority cardholders also get an additional rate discount. Citibank’s loan rates are not the lowest out there, so the rate discounts can help — and Citibank charges no fees on the loan.

Borrowers with good to excellent credit — or a co-borrower who qualifies — will likely find lower rates with other no-fee lenders, such as LightStream or SoFi.

Additionally, Citi won’t be the best personal loan option if you need a large loan. Its maximum loan amount of $30,000 is lower than LightStream’s, SoFi’s, and PenFed’s loan limits. Generally, you can likely find more flexibility in how much you borrow and the length of time to repay with other lenders.

How To Get a Citibank Personal Loan

There are a few ways to apply for a Citibank loan. The process is simple and funding is fast — within two business days, if approved.

Application Process

Apply for a Citibank personal loan by completing an application online, over the phone or in-person at a Citibank branch. To see what interest rates you qualify for, you’ll first submit personal information and basic loan details, such as the amount and how you intend to use it. This prequalification process takes only a few minutes and will trigger a soft credit check that does not impact your credit score.

If you’re preapproved and find a loan option that meets your needs, select the offer and complete the application. Throughout the process, Citi may ask you to submit documents that verify your identity and income, so having copies of your driver’s license and recent pay stubs can help expedite approval. Submitting the application will institute a hard credit check as Citibank reviews your credit history, which could cause your credit score to drop slightly.

Approval and Funding

A Citibank loan can be approved as soon as the same day or up to seven business days. How quickly you’re approved could depend on the complexity of your application (for example, if you’re self-employed versus working for an employer) and whether you filled out the application accurately and submitted all required documents. If approved, you can get your money within two business days if it’s deposited into a checking account — sooner if it’s sent to a Citibank deposit account.

To ensure a fast and smooth approval process, look out for follow-up requests from Citibank in your inbox and try to respond quickly. You can contact their customer service group if you have questions throughout the process.

Citibank Personal Loans Reviews

Many Citibank borrowers highlighted the simplicity of the online personal loan application process. Interest rates were competitive for some and a bit high for others. Reviewers also cited transparent loan offers and responsive customer service.

“_We have an online account and it was easy to do this without visiting a branch. However, we’d only financed a small amount ($20K) so don’t know if that affected things. The rates were competitive and quick response times._”

— Steve, Portland, Ore., January 2023, Best Company

“_I previously had a personal loan with CitiBank. I needed the money for bill consolidation. The application process was easy and I received a quick approval. The interest rate was a little high but CitiBank was up front and honest about the terms. The customer service was excellent. I was always able to get an answer quickly and the representatives were knowledgeable and cordial._”

— Matthew L., San Diego, 2022, Best Company

A significant number of reviews point to subpar customer service. However, these include customer reviews for Citi’s other products, like credit cards and checking and savings accounts. In many cases, borrowers could not easily talk to a live representative to resolve their issues. Other customers experienced delays in the application process.

“_Sometimes you need to talk to a person and for that I would give them ONE star. You have to go through sooooo many prompts you can forget where you are…it is absolutely endless. Plus, I was told the other day by a citibank phone rep the only way you can speak to a rep in the US is to physically go to a branch, which is absolutely unacceptable._”

— Bek, U.S., October 2023, Trustpilot

“_I applied for a personal loan from Citi Bank about 3 years ago and they gave me my paperwork with my loan details on it and then it took 4 days for me to get the loan after being told it would be the next business day. They also changed my interest rate about 2 months into the loan._”

— Amanda G., Illinois, July 2023, Best Company

Citibank did not respond to a request for comment.

Eligibility Requirements for Citibank Personal Loans

Borrowers with fair to good credit could be eligible for a Citibank personal loan.

Credit Score and Financial History

Citibank looks for applicants with a minimum credit score of 680. Generally, the higher your score, the more confident a lender will be in your ability to repay the loan. The longer your history of open accounts in good standing, the higher your score could be. On the other hand, having a history of late payments or delinquent accounts — or even having little to no credit at all — could make it harder to qualify for a personal loan. You can try resolving delinquencies on your report and improving your score before applying for a Citibank loan.

Income and Employment

Citibank will likely review your annual earnings and current employment information to determine if you have sufficient income to take on a personal loan. Many lenders, like Citibank, will evaluate your debt-to-income (DTI) ratio, which measures your monthly income against your monthly debt obligations. The lower your DTI, the more likely you are to be approved. A high DTI may signal to a lender that you’ll struggle to repay the loan.

Citibank recommends a DTI of 35% or less — meaning debt payments take up 35% or less of your monthly income. You can improve your DTI by increasing your income and paying down current debts.

Citibank Personal Loans Usage Rules

You can use a Citibank personal loan for various expenses like home improvement, debt consolidation and major purchases, to name a few. Borrowers often take out a loan to cover unexpected, urgent costs like medical expenses and car repairs or to pay down high-interest credit card debt. But you cannot use a Citibank personal loan for postsecondary education expenses or business purposes — this is a common restriction among lenders.

Citibank Personal Loans Fees and Penalties

Personal loans from Citibank don’t have an origination fee, late fee or prepayment penalty.

Loan Origination Fees

Citibank does not charge an origination fee — a fee some lenders charge to service the loan. An origination fee, often listed as a percentage of the loan amount, is subtracted from your loan before it hits your account, taking away from money you may need to cover expenses.

Early Repayment Penalties

There are no penalties for paying off your loan early with Citibank. Some lenders charge a prepayment fee if you pay your loan in full before the end of the term outlined in your loan agreement. If you choose a lender with early repayment fees and want to pay down your loan aggressively, calculate the fee first to see if it’s worth it.

How Citibank Compares to Other Lenders

See how Citibank compares to other lenders that offer fast and flexible personal loans. Compare interest rates, repayment terms and features to make the best decision.

Citibank and LightStream both offer fast personal loans with no fees. LightStream has higher maximum loan amounts — 100,000comparedtoCitibank’s100,000 compared to Citibank’s 100,000comparedtoCitibank’s30,000. You’ll likely qualify for a lower rate with LightStream if you have good to excellent credit. There is, however, no prequalification with LightStream. The only way to see your loan offer is to complete a full application, which will initiate a hard credit check.

Like Citibank, SoFi has an autopay discount, among other rate reductions. But SoFi goes a step further, offering its members financial planning, career coaching, unemployment protection and several other perks. Having a lower minimum APR and higher loan amounts also separates SoFi from Citibank.

PenFed Credit Union allows applicants to prequalify for their rate without impacting their credit score. But PenFed also offers some of the lowest interest rates among personal loan lenders. It allows you to complete a joint application with a co-borrower. If you can’t qualify for favorable loan terms on your own, applying with a co-applicant may help you get lower rates.

The Bottom Line

A personal loan from Citibank could be a sound option for existing customers who don’t need a large loan. Citibank’s minimum APR is higher than other lenders, but the discounts for autopay and Citi cardholders may offset the higher rates, if only slightly.

Citibank is also on our list for best savings accounts.

How We Rate Citibank Personal Loans

Our team put together a comprehensive 100-point rating system to evaluate Citibank and other personal loan companies based on factors that mean the most to you, the potential borrower. We then gathered scores of data points from across the industry, analyzing disclosures, licensing documents, sample loan agreements, marketing materials and websites for more than two dozen of the most prominent personal loan companies in the U.S.

Our rating system takes into account four broad categories. Here’s a brief breakdown of each one.

• Affordability (35%): We gauge how expensive each company’s loans are to pay back, taking into account both interest rates and fees. The highest-scoring lenders will have low minimum and maximum annual percentage rates (APRs) and low or no origination fees.
• Loan features (35%): This category measures the breadth of loan terms available to prospective customers. The most points go to lenders with a wide range of loan lengths, small minimum loans, large maximum loans, and fast funding.
• Customer experience (20%): We review each company’s application, prequalification and customer service policies and procedures to create this category score. The best companies will have simple online applications and multiple ways for customers to get their problems solved.
• Company reputation (10%): Our team analyzes each company’s Better Business Bureau file, customer reviews and any outstanding regulatory actions. The most points will go to companies with an A+ rating with the BBB, a track record of addressing customer complaints and no active regulatory orders.

This rating system is intended to give readers a comprehensive overview of each personal loan company. However, our top-rated lenders may not be the best fit for all borrowers. To learn more, you can read our full personal loans methodology.

Frequently Asked Questions About Citibank Personal Loans

You will likely need a credit score between at least 680 and 720 to qualify for a Citibank personal loan. However, there are other data points Citibank could review. Your annual income and DTI ratio will factor into your eligibility. If you’re concerned that your credit score may not qualify for a personal loan, consider working to improve your credit or choose a lender that allows a co-borrower.

Getting approved for a personal loan with Citibank will depend on your credit score, DTI ratio, payment history and employment, to name a few factors. Having missed payments or other delinquencies on your credit report can make it harder to get approved. Review your report for any errors or issues you can resolve.

Citibank does not list a hard salary requirement. Most financial institutions look at your DTI ratio to see if you have sufficient income to make your monthly payments. Citibank suggests a DTI of 35% or less — meaning 35% or less of your monthly income is committed to debt payments.

You’ll first prequalify on Citi’s website, which could take minutes. If preapproved, you can select an offer and complete the application. How long it takes to receive approval could depend on the complexity of your application and any documents Citibank requests. Once approved, Citibank can deposit funds the same day into Citi accounts and within two business days for external accounts.

Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.