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preapproved for $5000 from citifinancial

Frequent Contributor

Re: preapproved for $5000 from citifinancial

Congrats!

mindbot7 wrote:

Good new, as i`m typing this post, i got $2000 CLI from my lovely BOA


Myfico scores as of 11/12/08 TU 750 EX 722

MyFico scores as of 9/20/08 TU 638 EX 663 EQ 691
Message 11 of 30
New Member

Re: preapproved for $5000 from citifinancial

CIT Financial is not affiliated with Citibank.  I had a small medical loan with a company and CIT Financial bought the loan from the other company.  Nothing on my statements show any affiliation with Citibank.
Message 12 of 30
Valued Contributor

Re: preapproved for $5000 from citifinancial



tomcat wrote:
CIT Financial is not affiliated with Citibank.

We are talking about CitiFinancial which most certainly is related to CitiCards by virtue of common ownership. They are both part of CitiGroup! Anyone who cares to may inform themselves here:
 
Message 13 of 30
Established Contributor

Re: preapproved for $5000 from citifinancial

I get letters from them all time for $6500.  I called and asked what is the minimum FICO score for approval and was told 650. I dont have excellent credit nor do I meet the minimum score. The letters never state the APR.  For example mine reads, "If you are approved for a loan, the actual loan amount and annual percentage rate you qualify for will depend on your ability to meet the pre-established criteria described above, including credit history, income and debts."

Starting Score: EQ: 633 (12/31/09) TU: 651 (12/31/09)
Current Score: EQ:633 TU: 651
Goal Score: EQ: 700 TU:700


Take the FICO Fitness Challenge
Message 14 of 30
Valued Contributor

Re: preapproved for $5000 from citifinancial



PurpleHaze wrote:
I get letters from them all time for $6500.  I called and asked what is the minimum FICO score for approval and was told 650. I dont have excellent credit nor do I meet the minimum score. The letters never state the APR.  For example mine reads, "If you are approved for a loan, the actual loan amount and annual percentage rate you qualify for will depend on your ability to meet the pre-established criteria described above, including credit history, income and debts."



In other words, YMMV. I have a hard time believing they require a 650. It has to be lower.
 
I did get one of these type offers from Discover Financial which offered an APR of 7.99%! If I was in the market for installment debt I would have taken that one, but I neither need nor want it. After that I was offered, app'ed for and got a Discover Card with great terms and a large CL. That makes much more sense for my purposes.
 
As far as CitiFinancial is concerned I hope I can always say NO!
Message 15 of 30
Highlighted
Valued Member

Re: preapproved for $5000 from citifinancial

These are considered "signature loans" and are harmful to your report.  These are scored differently than a collateral loan or credit card as most of these loans are solicited as desperation loans geared towards getting customers money quick without regard for interest.  I had one - it took forever to age off my reports and ScoreWatch listed it as a negative impact. 
 
While in the 650's - used to get these types of letters monthly.  Now in the 750's - never see them.
Feel free to make your own assumtion based on this.
Message 16 of 30
Moderator Emerita

Re: preapproved for $5000 from citifinancial

Not "signature loans" so much as consumer finance loans (CFL's.) It's where they come from that's the problem, rather than their being a non-collateralized loan.

DH has this fascination with signature loans from our local CU. There must be 8 of them on his reports, and his scores are in the 800's, with no negative factors. Smiley Mad Oh, no wait, Smiley Happy
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 17 of 30
Frequent Contributor

Re: preapproved for $5000 from citifinancial

Just an FYI--I opted for one of these personal loans from CitiFinancial for about 6500 this past spring. APR was 29.99% (we were in a time crunch and "needed" the money) and was ran as an installment loan over 5 years. If we waited 5 years to pay it off it would have cost us over 14 grand, needless to say we had it paid off in 4 months.
 
Also, when the rep gave me the terms for the loan she said I would "automatically" get a credit card from Citi due to my "great credit" (it was 650s at the time) but I had to sign for the card. BS! Citi ended up running my credit to do the card so I ended up with 2 inquiries from those people. UGH.
 
I would stay away from them unless you know you will have the money to repay VERY quickly. Like I said, we had our loan paid off in 4 months, but we still ended up paying over 1K in interest over those 4 months...
Wisdom doesn't automatically come with old age. Nothing does - except wrinkles. It's true, some wines improve with age... but only if the grapes were good in the first place.
Message 18 of 30
Established Contributor

Re: preapproved for $5000 from citifinancial



daWorm wrote:
While in the 650's - used to get these types of letters monthly.  Now in the 750's - never see them.
Feel free to make your own assumtion based on this.




I'm not sure whether this is always the case. I didn't get any credit card pre-approval offers (except from SW Airlines), but some debt consolidation installment loan offers from Citifinancial. Which brought me to pull my credit report in the first place, and I now know that my EQ score is in the 740's.
Message 19 of 30
Valued Contributor

Re: preapproved for $5000 from citifinancial

CitiFinancial are middle feeders. They want people who really want the money (and hence are going to buy off on the terms), but a likely to pay it off. It is just another way to get the unsuspecting customer to pay the most possible. If your scores are too high you most likely will have other alternatives. Almost anybody would be better off shopping at their local CU.
Message 20 of 30