Citibank sent me a pre-approval communication within the correspondence for a personal loan?
Its for up to $5,000.
Although I wasnt seeking a loan I did want to finish my basement and figured this would give a hand so I looked into it. They gave me an interest rate of 22.99%.
This seemed pretty giant to me but the lady assured me that was certainly 4% less then the PA average because I gather round income and credit requirements.
Answers: STAY AWAY from ANY loan with a 22.99% interest rate. You could get a credit card for smaller number than that. If you have good credit and want a loan, the bank you have your accounts through is the best place to travel. NEVER apply for a loan that is solicited through the mail. My husbands credit rating is powerfully into the 800's, and he gets those horrible offers EVERYDAY. He could bring an interest rate down near 6%...why would he get a loan for 18%? They distribute you those because they hope you're a damn fool, and if you applied for one...you'd prove them right.
I did the math...that would be $1,149.50 a year just in interest!
And when I said you could gain a credit card for less than that, I didn't mean I'd recommend taking out a loan on your card...that would be HIGHLY inadvisable and crazy...but not as crazy as applying for this dignified interest loan. My recommendation is if you need a loan, see your wall. Interest rates are low right now. And go for a FIXED rate, not a flexible one. If prime right very soon is around 6%, in two years it could be back up to 8% (or 9...or higher), and that's a huge monthly stipend jump. Could mean the difference between making your payments and keeping your house, or losing everything. Your fixed rate will be better, but it will stay manageable. That's not a gaurantee they can make next to a flexible rate.
Well, she may be right about their interest rate being a littler lower than the average.however the average "financing" companies do hold higher interest rates. I can promise it's not lower than a local bank or credit grouping.
If you want an improvement loan I would try my bank or credit confederation for a low interest short term non-revolving loan. Or, check out some of the peer to peer lending networks that are popping up out on the network. It's kind of a cool concept.
If you got a pre-approved loan from Citibank, your credit may be pretty moral because now days the credit guidelines for even the financing companies are becoming more stringent. If that's the case, I'd borrow from someone I could trust.
Yeah, that's pretty discouraging.
Pre-approval doesn't really "mean" anything - it's just "hey, you have credit, would you close to us to see if we can give you a loan?"
Maybe that's 4% less than the average (I come up with she was making the numbers up!) but it's still a poor deal - if your credit and income are okay, you should be capable of get a credit card with at tiniest 3-6 months of 0% interest and 15-20% interest (and that's higher than I'd LIKE, honestly!)
Don't take it, you can turn and get a personal loan at a different bank if your credit and dti is fitting! Bad idea, bad do business, wouldn't do it! Terrible deal.
horrible deal...
do the math on the ammortization of the loan and you will devise twice.
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Although I wasnt seeking a loan I did want to finish my basement and figured this would give a hand so I looked into it. They gave me an interest rate of 22.99%.
This seemed pretty giant to me but the lady assured me that was certainly 4% less then the PA average because I gather round income and credit requirements.
Answers: STAY AWAY from ANY loan with a 22.99% interest rate. You could get a credit card for smaller number than that. If you have good credit and want a loan, the bank you have your accounts through is the best place to travel. NEVER apply for a loan that is solicited through the mail. My husbands credit rating is powerfully into the 800's, and he gets those horrible offers EVERYDAY. He could bring an interest rate down near 6%...why would he get a loan for 18%? They distribute you those because they hope you're a damn fool, and if you applied for one...you'd prove them right.
I did the math...that would be $1,149.50 a year just in interest!
And when I said you could gain a credit card for less than that, I didn't mean I'd recommend taking out a loan on your card...that would be HIGHLY inadvisable and crazy...but not as crazy as applying for this dignified interest loan. My recommendation is if you need a loan, see your wall. Interest rates are low right now. And go for a FIXED rate, not a flexible one. If prime right very soon is around 6%, in two years it could be back up to 8% (or 9...or higher), and that's a huge monthly stipend jump. Could mean the difference between making your payments and keeping your house, or losing everything. Your fixed rate will be better, but it will stay manageable. That's not a gaurantee they can make next to a flexible rate.
Well, she may be right about their interest rate being a littler lower than the average.however the average "financing" companies do hold higher interest rates. I can promise it's not lower than a local bank or credit grouping.
If you want an improvement loan I would try my bank or credit confederation for a low interest short term non-revolving loan. Or, check out some of the peer to peer lending networks that are popping up out on the network. It's kind of a cool concept.
If you got a pre-approved loan from Citibank, your credit may be pretty moral because now days the credit guidelines for even the financing companies are becoming more stringent. If that's the case, I'd borrow from someone I could trust.
Yeah, that's pretty discouraging.
Pre-approval doesn't really "mean" anything - it's just "hey, you have credit, would you close to us to see if we can give you a loan?"
Maybe that's 4% less than the average (I come up with she was making the numbers up!) but it's still a poor deal - if your credit and income are okay, you should be capable of get a credit card with at tiniest 3-6 months of 0% interest and 15-20% interest (and that's higher than I'd LIKE, honestly!)
Don't take it, you can turn and get a personal loan at a different bank if your credit and dti is fitting! Bad idea, bad do business, wouldn't do it! Terrible deal.
horrible deal...
do the math on the ammortization of the loan and you will devise twice.