Personal Finance

citifinancial loans

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  • Apr 30th, 2016 5:16 pm
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Sr. Member
Jan 16, 2010
629 posts
21 upvotes

citifinancial loans

anyone have any experience with citi financial loans. looking for about 40,000$ unsecured loan or line of credit. i make $65,000. and have student loan debt, 15,000 on credit card and 20,000 on line of credit. i want to consolidate everything. i dont own a house.
12 replies
Jr. Member
Mar 29, 2015
164 posts
101 upvotes
London, ON
I've never dealt with them, but interest rates start at 26%, which means you're probably better off with your current credit products.
Jr. Member
Mar 29, 2015
164 posts
101 upvotes
London, ON
Maybe try Borrowell or Grow (formerly Grouplend). They have more competitive rates.

You could also try to get some credit cards with low interest balance transfer offers. MBNA Platinum Plus for instance, offers a 0% interest balance transfer for a year.
Deal Addict
Apr 13, 2015
1108 posts
214 upvotes
vegaling wrote: I've never dealt with them, but interest rates start at 26%, which means you're probably better off with your current credit products.
Indeed! You're also limited to 20K when renting.

Try these guys instead.
https://www.poweredbygrow.com

I have a loan with them, and it has worked quite well so far.

Also, you don't benefit by consolidating your student loan unless its in bad standing and you can't rehab it.
Deal Addict
Jan 2, 2015
1633 posts
639 upvotes
Toronto, ON
Years ago, when my credit was rock bottom, a creditor forced me to seek a loan from Citi as they were "easy". I knew I'd fail and just send the rejection letter to the creditor, which only then let me negotiate a payment arrangement. I didn't actually want the loan, and while I didn't know much about finance, I didn't see how probably paying higher interest to yet another creditor would improve my situation.

Citi would only let me borrow a minimum of $1000 (while in the hole, it would take less to satisfy the creditor), and since I now know they only offer sky-high interest rates, I'm even more glad they rejected me. With such high rates, no wonder they were (are?) considered "easy".
Deal Addict
Apr 13, 2015
1108 posts
214 upvotes
FoFai2015 wrote: Years ago, when my credit was rock bottom, a creditor forced me to seek a loan from Citi as they were "easy". I knew I'd fail and just send the rejection letter to the creditor, which only then let me negotiate a payment arrangement. I didn't actually want the loan, and while I didn't know much about finance, I didn't see how probably paying higher interest to yet another creditor would improve my situation.

Citi would only let me borrow a minimum of $1000 (while in the hole, it would take less to satisfy the creditor), and since I now know they only offer sky-high interest rates, I'm even more glad they rejected me. With such high rates, no wonder they were (are?) considered "easy".
Yes, same happened to me 8 years ago except I just laughed at the collection agent? Why would I replace debt A with a more expensive debt B when I can't even afford to pay debt A? Isn't this fraud?
Deal Fanatic
Nov 22, 2015
7846 posts
8793 upvotes
bruceh2015 wrote: Yes, same happened to me 8 years ago except I just laughed at the collection agent? Why would I replace debt A with a more expensive debt B when I can't even afford to pay debt A? Isn't this fraud?
How is that fraud at all?

You were the one who wasnt financially responsible enough to pay as agreed on a loan/line/credit card.

They don't care the slightest about why you can't make the payments - you owed them money, plain and simple. If you need to take another loan out to make that repayment, how is that their problem?

Another thing is: many people just can't control their spending on revolving credit e.g. someone who can't seem to pay down their 5K credit card balance may have better success with debt repayment in the form of fixed loan payments, even if the interest rate is a higher.
Deal Fanatic
User avatar
Jan 31, 2006
8541 posts
2655 upvotes
Toronto
vegaling wrote: I've never dealt with them, but interest rates start at 26%, which means you're probably better off with your current credit products.
I learn a lesson out of it, the thing is they offered me an insurance option and I took it, I meet an car accident. The insurance company ended paying half the loan I took. hehehe....
Deal Addict
Apr 13, 2015
1108 posts
214 upvotes
superfresh89 wrote: How is that fraud at all?

You were the one who wasnt financially responsible enough to pay as agreed on a loan/line/credit card.

They don't care the slightest about why you can't make the payments - you owed them money, plain and simple. If you need to take another loan out to make that repayment, how is that their problem?

Another thing is: many people just can't control their spending on revolving credit e.g. someone who can't seem to pay down their 5K credit card balance may have better success with debt repayment in the form of fixed loan payments, even if the interest rate is a higher.
Wow, are you really this challenged?

It is fraud to sign a loan document if you know you can't pay it.

If it is in collections, your loan is already in the worst possible state. Taking on a more expensive loan to fix a loan that is already as broken as it can be, couldn't be more stupid. Collection agents can NOT legally force you to do this. Don't fall for this trap. Don't create another bad debt for yourself and pay that collection agent his commission check. Instead, insist on a payment arrangement with the collection agency. If they refuse, send payments anyhow, keep careful records, and if it ends up in court you can prove your good faith and show that the collection agent was uncooperative.

Furthermore, there is no such thing as an instalment loan with more favourable terms if the interest rate is higher than the rate on your credit card. The minimum payment on your credit card is already the smallest possible payment that often requires 100 years to clear the debt. If you can afford the higher interest on a citibank loan, you should be applying that interest instead to your monthly credit card payment. You'll clear your debt WAY WAY WAY faster this way!!

The only time that a citibank loan might be smart is if you're consolidating debt that is even more expensive, such as a payday loan.
Deal Fanatic
Nov 22, 2015
7846 posts
8793 upvotes
bruceh2015 wrote: Wow, are you really this challenged?

It is fraud to sign a loan document if you know you can't pay it.

If it is in collections, your loan is already in the worst possible state. Taking on a more expensive loan to fix a loan that is already as broken as it can be, couldn't be more stupid. Collection agents can NOT legally force you to do this. Don't fall for this trap. Don't create another bad debt for yourself and pay that collection agent his commission check. Instead, insist on a payment arrangement with the collection agency. If they refuse, send payments anyhow, keep careful records, and if it ends up in court you can prove your good faith and show that the collection agent was uncooperative.

Furthermore, there is no such thing as an instalment loan with more favourable terms if the interest rate is higher than the rate on your credit card. The minimum payment on your credit card is already the smallest possible payment that often requires 100 years to clear the debt. If you can afford the higher interest on a citibank loan, you should be applying that interest instead to your monthly credit card payment. You'll clear your debt WAY WAY WAY faster this way!!

The only time that a citibank loan might be smart is if you're consolidating debt that is even more expensive, such as a payday loan.
That would be fraud on your part, not theirs. No one can force you to do anything.

I see dozens of clients every month who just don't know or care about paying down their credit cards. They'll pay the minimum and spend every last penny that's left over. Many people would be better off taking a loan, even a high interest loan, closing their credit cards and have a 5 year plan to clear their debts. Even a 26% loan is infinitely better than a credit card balance carried indefinitely. At least most of these loans are open too - pay it off faster and save yourself some interest.
Deal Addict
Apr 13, 2015
1108 posts
214 upvotes
superfresh89 wrote: That would be fraud on your part, not theirs. No one can force you to do anything.

I see dozens of clients every month who just don't know or care about paying down their credit cards. They'll pay the minimum and spend every last penny that's left over. Many people would be better off taking a loan, even a high interest loan, closing their credit cards and have a 5 year plan to clear their debts. Even a 26% loan is infinitely better than a credit card balance carried indefinitely. At least most of these loans are open too - pay it off faster and save yourself some interest.
Wait minute. We are talking about a credit vehicle in collections. It is already closed and unusable! Make the very same payments to the collection agency that you would to your citibank loan and you will clear the loan more quickly! Pay it off sooner if you can! Don't take on a more expensive loan! If you are in collections, you're already scrambling for cash! Don't make it even worse for yourself!

There part; my part; who cares! It is fraud to sign a loan document if you know you can't pay! If you were making your minimum payment, you wouldn't be in collections! Therefore, you can't even afford the minimum payment! So how can you possibly claim that you can afford the instalment loan?
Deal Addict
Apr 13, 2015
1108 posts
214 upvotes
superfresh89 wrote: That would be fraud on your part, not theirs. No one can force you to do anything.

I see dozens of clients every month who just don't know or care about paying down their credit cards. They'll pay the minimum and spend every last penny that's left over. Many people would be better off taking a loan, even a high interest loan, closing their credit cards and have a 5 year plan to clear their debts. Even a 26% loan is infinitely better than a credit card balance carried indefinitely. At least most of these loans are open too - pay it off faster and save yourself some interest.
By the way, you and Mikeymike should have a discussion. Many times he has reported that people who take on consolidation loans for the most part find themselves even deeper in debt. Now, add the high 27% interest ( minimum) to the equation, and you have a disaster in the making!!

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