A CitiFinancial Personal Loan vs. the Ubiquitous Payday Loan
If you need cash quickly and do not have any reasonable resources as your disposal, what can you do? You may think that a payday loan, or cash advance, available both online and from brick and mortar shops in every town is your only option. There is an alternative. If you have some amount of established credit or a willing co-signer, you can apply for a CitiFinancial Personal Loan.
There are some similarities between a cash advance or payday loan and a personal loan. Both can offer you cash in hand in a hurry, typically less than 24 hours. They can meet emergency needs, like paying for a car repair or medical bill. The application process is easy, in both cases. Loans can be applied for online or in person, depending upon the availability of a branch in your area. As unsecured loans, you can expect both a personal loan from CitiFinancial and a payday loan to come with higher interest rates than your mortgage or car loan would; however, how high will vary depending upon both the lender and your credit.
What are the differences between a personal loan from an established bank like CitiGroup and a payday loan? First and foremost, you probably are aware that payday loans do not require a credit check. CitiFinancial does do a credit check, and requires some amount of credit history, as well as no past bankruptcies. Personal loan limits via an established bank after a credit check are typically significantly higher than those from payday or cash advance lenders. An unsecured loan will come with a fixed interest rate, dependent upon your credit worthiness. Payday loans have interest rates that equate to an APR of 300% or more, and typically have a shorter repayment period. For more information about payday loans and lending, see http://www.ftc.gov/bcp/conline/pubs/alerts/pdayalrt.shtm. A personal loan from a reputable banking institution like CitiGroup will not have a prepayment penalty and will typically offer some amount of time in which to change your mind and return the funds borrowed without penalty or cost.
While you may well have heard news broadcasts about the unethical loaning practices of payday lenders, you can feel secure knowing that you are borrowing from a reputable bank that manages loans of all sorts, including mortgages and auto loans. You can apply for a personal loan here.