Citizens Bank Debt Consolidation Loan Review: How Competitive Is It? Find Out Here!

Those who are having trouble paying off many obligations frequently turn to debt consolidation. It comprises taking out a new loan to pay off several existing loans or debts so that going ahead, all you have to make is one monthly payment. Citizens Bank is one of the lenders that offers debt consolidation loans. This evaluation will analyze whether Citizens Bank debt consolidation loan product is competitive when compared to those of other lenders on the market.

Debt Consolidation Loan: What Is It?

Debt consolidation is a technique for managing debt that involves taking out a new loan to settle several debts. By consolidating your loans, you can simplify your monthly payments, possibly cut your costs and interest rates, and pay off debt more rapidly. A debt consolidation loan is one type of loan that can be used to consolidate your debts.

Citizens Bank Debt Consolidation Loan: What Is It?

Citizens Bank is a well-known bank that offers a wide range of financial services and goods. They offer debt consolidation loans to qualified borrowers who want to simplify their debt payments. These are some of the key features of a Citizens Bank debt consolidation loan:

Amounts of Loan

You can borrow up to $50,000 with a Citizens Bank debt consolidation loan, which is more than with loans from some other lenders.

Loan Terms

Citizens Bank offers loans with terms ranging from three to seven years. As the loan’s term lengthens, your monthly payment may decrease, but you will end up paying a higher total amount in interest.

The Interest Rates

Citizens Bank offers fixed interest rates, which are rates that won’t change during the length of your loan. Their interest rates start at 6.79% APR, which is competitive when compared to those of other lenders.

Charges

Citizens Bank does not impose any application, origination, or prepayment fees for their debt consolidation loans.

Credit Score Required

Citizens Bank has a somewhat high credit score requirement of 680, compared to some other lenders, to be eligible for a debt consolidation loan.

Process of Application

You can apply for a Citizens Bank debt consolidation loan online, by phone, or in person at a branch. The application process is straightforward, and you may anticipate a speedy response.

Citizens Debt Consolidation Loan: Is It Competitive?

Despite having enticing qualities like sizable loan amounts and cheap interest rates, how does Citizens Bank’s debt consolidation loan product compare to those provided by other lenders in the market? Let’s explore how some other well-known debt consolidation loan options stack up against Citizens Bank.

LendingClub’s Debt Consolidation Loan

LendingClub, a platform for peer-to-peer lending, offers debt consolidation loans to qualifying borrowers. A LendingClub debt consolidation loan has the following important features:

Loan Amounts: A debt consolidation loan from LendingClub is significantly less expensive than one from Citizens Bank, with a maximum loan amount of $40,000.

Loan Terms: Compared to Citizens Bank, LendingClub offers loan lengths of 3 to 5 years.

Interest rates: Compared to Citizens Bank, LendingClub provides fixed interest rates that start at an annual percentage rate (APR) of 6.95%.

Fees: Compared to Citizens Bank, LendingClub imposes origination fees that range from 1% to 6% of the loan amount.

Credit Score: LendingClub requires a lower minimum credit score for debt consolidation loans—600—than Citizens Bank.

Application Process: It’s easy and quick to apply online for a LendingClub debt consolidation loan. You’ll also get a quick response.

Prosper’s Debt Consolidation Loan

Prosper is another peer-to-peer lending network that offers debt consolidation loans to qualifying borrowers. The following are a few crucial qualities of a Prosper debt consolidation loan:

Loan Amounts: You can borrow up to $40,000 with a Prosper debt consolidation loan, which is a bit less than Citizens Bank.

Loan Term: Compared to Citizens Bank, Prosper offers loans with periods between three and five years.

Interest rates: Fixed interest rates on Prosper start at 6.95% APR, which is a bit lower than Citizens Bank’s rates.

Fees: In comparison to Citizens Bank, Prosper charges origination costs that can total up to 5% of the loan amount.

Credit Score: Prosper, as opposed to Citizens Bank, has a lower minimum credit score requirement for debt consolidation loans, at 640.

Application Process: Applications for a Prosper debt consolidation loan are accepted online, and approval occurs quickly.

Wells Fargo’s Debt Consolidation Loan

Wells Fargo is one well-known bank that offers debt consolidation loans to qualified borrowers. Important features of a Wells Fargo debt consolidation loan include:

Loan Amounts: The maximum loan amount for Wells Fargo debt consolidation loans is $100,000, which is more than Citizens Bank.

Loan Term: The loan terms offered by Wells Fargo, which range from 12 to 84 months, are longer than those of Citizens Bank.

Interest rates: When compared to Citizens Bank, fixed interest rates at Wells Fargo begin at 5.74% APR.

Fees: Wells Fargo does not charge application or prepayment costs, however, they do charge origination fees that range from 0.5% to 5% more than Citizens Bank loans.

Credit Score: Wells Fargo has a lower minimum credit score requirement for debt consolidation loan approval than Citizens Bank, at 600.

Application Process: You can apply for a Wells Fargo debt consolidation loan online, over the phone, or in person at a branch. The application process is straightforward, and you may anticipate a speedy response.

Citizens Bank Versus Other Lenders

The debt consolidation loan program offered by Citizens Bank holds up quite well when compared to similar programs offered on the market by other lenders. Customers with strong credit might consider Citizens Bank as a viable choice because it offers sizable loan amounts, competitive interest rates, and no fees. Yet, Wells Fargo offers loans with greater amounts while other lenders like LendingClub provide even lower interest rates. Some borrowers may find some lenders, including LendingClub and Prosper, more accessible due to their lowered credit score criteria.

Remember that depending on your creditworthiness, income, and other circumstances, interest rates and fees may change. As a result, just because one lender may offer a lower interest rate than another doesn’t mean you will be qualified for it. Before you apply for a debt consolidation loan, it is essential to shop around and compare offers from several lenders in order to receive the best conditions.

Benefits and Drawbacks

Like any financial instrument, the debt consolidation loan from Citizens Bank offers benefits and drawbacks. Here are a few major advantages and disadvantages to consider:

Benefits:

• Large loan amounts: Citizens Bank provides loans up to $50,000 compared to certain other lenders.
• Competitive interest rates: Citizens Bank has competitive interest rates that start at 6.79% APR when compared to other lenders.
• No fees: For applications, originations, or prepayments of debt consolidation loans, Citizens Bank levies no fees.
• Simple application procedure: With a Citizens Bank debt consolidation loan, you can apply in person, by phone, or online.

Drawbacks:

• High credit score requirement: Citizens Bank has a minimum credit score requirement of 680, which may be too high for some individuals looking to consolidate their debt.
• Shorter loan terms: As compared to loans with longer terms given by other lenders, Citizens Bank offers loan durations up to 7 years, which could mean larger monthly payments and more interest paid overall.
• Limited availability: It’s possible that not all states provide Citizens Bank debt consolidation loans.

Citizens Bank Debt Consolidation Loan: Is It Right For You?

If you have strong credit, need to borrow more money, and want to minimize costs, Citizens Bank can be a suitable choice for you if you’re thinking about getting a debt consolidation loan. Consider other lenders like Wells Fargo, LendingClub, or Prosper if you need to borrow more money, want a longer repayment period, or have a poorer credit score.

Consider your total financial situation carefully before applying for any debt consolidation loan to see if a loan is the best course of action for you. While a debt consolidation loan might make your monthly payments simpler and possibly result in cost savings on interest and fees, it’s crucial to ensure that you can afford the new monthly payments and have a strategy in place to prevent taking on additional debt in the future.

Bottom Line

The competitive debt consolidation loan program offered by Citizens Bank includes large loan amounts, low interest rates, and no fees. It might not be the best option for some borrowers, particularly those with poor credit or those who seek longer loan terms. Prior to submitting an application for a debt consolidation loan, it’s important to compare offers from various lenders and consider your overall financial situation. If you have the right strategy in place, a debt consolidation loan can be a useful instrument for getting out of debt and improving your financial circumstances.