Unsecured loans are not secured by any form of collateral and are often referred to as signature loans. Consolidation loans combine two or more credit accounts into one installment loan, making payments easier and saving money overall in interest rate charges.

Obtain an unsecured consolidation loan to simplify your debt and to lower the amount of interest you pay. Many people choose Citibank for unsecured debt consolidation loans because the company is well known and offers flexible terms to qualified borrowers.


Review a Citibank Offer of Unsecured Debt Consolidation Loans

You may receive an offer from Citibank through postal mail or electronic mail to consolidate your debt. Oftentimes the offer presents an estimated loan amount and payment schedule and will state that you are prequalified or preapproved. These offers make a few assumptions that may not necessarily be true:

  • You qualify for the loan.  A prequalification does not mean that you are already approved for the loan. Generally, this means that you qualify based on certain factors, but your credit score will still need to be reviewed and you can still be turned down for this loan.
  • You will want to the loan amount specified.  The payment schedule listed on the offer is based on the loan amount proposed by Citibank. The actual amount you need to borrow may be more (resulting in a higher monthly payment) or less (resulting in a lower monthly payment) than what the offer states.
  • Your interest rate will be as listed on the offer. Citibank assigns interest rates to loans based on your credit score and other qualifying factors. For example, your offer may list an interest rate of 10.49 percent, but the actual interest rate your receive might be as high as 28.49 percent if your credit is not excellent. A higher interest rate changes the amount of your monthly payment as well as the amount of money you will pay over the life of the loan. 
  • You want the term listed on the offer. The offer you receive may assume a certain term for the loan, such as 48 or 60 months for repayment. Choosing a different term will change the monthly payment; a shorter term will result in a higher monthly payment and a longer term will make your monthly payment smaller.

Read the terms and conditions of the Citibank offer of unsecured debt consolidation loans. Take the time to compare the costs of obtaining this loan as opposed to other loans or selecting an alternate way to pay your debt down. Consolidation loans, even if unsecured by collateral, can be a great way to get your debt under control. The trick is to not accept a higher interest rate than you have for the debt accounts you currently pay individually.


Apply

If you receive a prescreened offer for a debt consolidation loan from Citibank, follow the instructions provided for applying for the loan. If you have not received an offer from Citibank, but are still interested in applying for this type of loan, you may do so on the Citibank website.

Here are a few things to keep in mind when applying for a Citibank unsecured debt consolidation loan:

  • The interest rate your receive will depend on your credit history and is an adjustable rate, subject to go up or down.
  • Citibank has requirements for approval that include already having an existing Chase account, or opening an account, before the loan will be funded.
  • You may be able to obtain a lower interest rate by allowing Citibank to automatically withdraw your monthly payments from your checking account.
  • The minimum amount for a loan is $500 and the maximum amount is $50,000.

For more information regarding this or any other Citibank product, or to apply for this loan, visit the Citibank website or contact a customer service representative: (800) 374-9700.

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