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Citifinancial Loan Offer?
Hello all here at Creditnet,
This is a great board with a lot of good people and good info. I've been wondering how to improve my credit and budget and I appreciate any help you all may have.
Now to my questions...I have half a dozen CCs, am current on all accounts, and have had no trouble paying on time every month. Trouble is, I have a Cap 1 Visa, a Cap 1 MC and a Sears charge card. The balances are high, about 72% utilization between these 3 cards. Visa balance is $1544.00 at 9.9% interest; MC balance is $2,900.00 at 14.9%; and Sears is $578.00 at about 23%. Between these 3 cards, I pay about $225.00 each month. I have been with Cap 1 for about 4 years and always paid on time; I would imagine I am exactly the type of customer they want to keep. My other cards are Discover Direct Rewards (PIF each month), Discover Platinum (PIF each month) and Chevron/Texaco (PIF every month). I have a GEMB card with a local tire store, but it's paid off as of last month.
I always pay more than the minimum payment on my Cap 1 and Sears accounts, even if it's just $5.00 more than the minimum. Only God knows how long it'll take to pay these cards off at that rate, so I responded to a loan offer I got from CitiFinancial. They approved me for a loan of $7,500.00 at about 22% interest; the monthly payment would be about $225.00. I don't need that much, so they said I can get $5,000.00 with a payment of about $150.00 if I want. The terms of the CitiFinancial loan are 22% over 5 years.
My questions are:
1. Does anyone here have any experience with CitiFinancial Loans, good/bad/indifferent?
2. Would it be wise to take the $5k loan & pay both Cap 1 cards & Sears off and wind up paying less on a monthly basis, or would it be smarter in the long run to keep paying my CC bills as I have all along?
In my current financial situation/budget, I am having trouble saving anything. Every penny I earn goes right back out again. If I did accept this loan offer, it would free up money in my budget that would be better spent elsewhere or saved.
I'd like to get the utilization monkey off my back if I can. Thanks for any help or ideas you all may have...
Try for an American Express product if you have a 650 FICO or higher. AMEX Blue, Blue Cash, & Clear all carry 4.9% balance transfer offers for the life of the balance.
Of course, this won't help in terms of utilization (for the short time), however, you will save alot of money via interest rates.
If you fail to get approved for any of the above, shoot for Delta Sky Points. Bump it up a little in terms of CLI and then convert it to an above shown product. You'll get all the same benefits.
Why dont you join Prosper.com,With your great credit you can get a great loan
In my experience, Citifinancial sux!!
Thanks everyone for your help. I may research Prosper.com. I've been to their site and I need more info to make that decision. I met with the people at Citifinancial last night, but I didn't sign anything and I don't want their loan. As it is now I have about $5500 debt on the Cap 1 cards and Sears account. If I took the loan, I'd owe almost $9000 to Citifinancial...So I think I will just try to work as much OT as I can or get a part time job so I can agressively pay these accounts down as fast as possible. That seems to be the most sensible way out of this mess....
Thanks again for your help.
Why would anyone pay 22%? Thats a bad bad plan....
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Stay away from Citibank, they are crooks!
Originally Posted by JamesN710