Citi vs Wells Fargo Loans

(July 2024)

S'witty Kiwi Editors
July 1, 2024

Our Verdict

Citi wins when you consider its personal loan products. Starting with Citi’s interest rates, you realize that the financial institution entices its customers with the offer of lower interest rates—which are lower than what Wells Fargo charges on most loans. For example, Citi’s interest rates range from 7.99% to 23.99%, while Wells Fargo’s range from 5.74% to 24.49%.

You’re likely to argue that Wells Fargo’s lowest rate is better than Citi’s. You’re right, but the rate is for the fewer customers with excellent credit scores. So, if you don’t have an excellent FICO rating you know where Wells Fargo puts you, don’t you? That simply tells you that you get its loans at higher interest rates.

Wells Fargo gets the trophy when it comes to loan amounts and terms. It offers higher loan amounts than Citi, up to $100,000, while Citi’s limit is $50,000. Wells Fargo also offers longer repayment terms, up to 84 months, while Citi’s maximum term is 60 months. However, both lenders allow borrowers to pay off their loans early without any prepayment penalties or fees.

On customer reviews, the two financial institutions don’t have any right standing from their customers’ opinions. They both receive poor ratings on Better Business Bureau (BBB). Again, Both lenders have histories of public settlements involving racial and disability discrimination, as well as other consumer complaints. Plus, Wells Fargo targets mainly the domestic market and offers exquisite mortgage offers. Citi has more global coverage and reach than Wells Fargo.

In a nutshell, Citi offers better loan options than Wells Fargo—if you have a fair to good credit score and lower loan needs, Citi is your go-to lender.

Why Choose Citi Loans

Who Citi Loans Are Best For?

Think of Citi loans if you’re an individual who:

Is an existing Citibank customer and is in a tight financial situation.
Has an excellent credit score and requires a short-term of up to 36 months.
Runs a small business and requires working capital or expansion funds.
Seeks mortgage loans or refinancing options.
Requires a lower loan amount up to between $2,000 and $30,000.
Wants to avoid loan application fees, origination fees, or prepayment fees.
Is looking for vehicle loans or financing options for purchasing a car.

Who Citi Loans Aren't Best For?

Consider other financing options if you:

Are a non-Citibank customer. You are not eligible for a Citi loan until you open an account first.
Have an excellent credit score, thereby qualifying for better rates with other lenders. Citi loans have a relatively high minimum interest rate of 8.99%, while some other lenders offer rates as low as 6% or lower.
Require a larger loan amount beyond $30,000. If you want to cover major expenses or consolidate an existing debt, Citi loan amounts may not be enough for your needs.
Are hellbent on getting a loan quickly without any hard credit check. One thing with Citibank is that it doesn’t offer an option for you to prequalify for a loan, which means you have to apply and undergo a hard credit check that can lower your credit score. You also have to wait up to five business days to receive the funds by mail unless you opt for direct deposit.
Want to apply with a co-borrower.

Why Choose Wells Fargo Loans

Who Wells Fargo Loans Are Best For?

Give Wells Fargo a trial if you’re someone who

Wants personal loans with competitive fixed interest rates.
Desires to avoid origination fee or prepayment penalty
Requires flexible loan terms from 12 to 84 months.
Wants to borrow from $3,000 to $100,000
Prioritizes a same-day credit decision by a lender.
Has a qualifying Wells Fargo checking account and can make automatic payments from a Wells Fargo deposit account.
Needs loans for consolidating debt, paying for home improvements, or making a major purchase.

Who Wells Fargo Loans Aren't Best For?

Reconsider your option before applying for Wells Fargo loan if you:

Have poor credit or low income.
Qualify for lower interest rates or better terms elsewhere.
Prefer not to open an account with Wells Fargo or make automatic payments from a Wells Fargo deposit account.
Want to pay off your debt faster or reduce your interest cost.
Need loans for other purposes than consolidating debt, paying for home improvements, or making a major purchase.

Citi vs Wells Fargo Loans: Main Differences

	Citi Loans	Wells Fargo Loans
Ideal For	Debt consolidation. If you have multiple high-interest debts, such as credit cards or other loans, you can use a Citi personal loan to pay them ofaf and simplify your payments. You can also save money on interest charges by getting a lower rate with a Citi personal loan. Home improvement. Want to renovate your home, upgrade your appliances, or make repairs? Use a Citi personal loan to cover the costs. You can also increase the value of your home by making improvements. Major purchases. Do you need to buy something expensive, such as a car—or fund expenses, such as a wedding or a vacation? Get a Citi personal loan. You can avoid using your credit card or dipping into your savings and pay back the loan over time with fixed monthly payments. Other personal expenses. If you have any other personal needs or goals, such as medical bills or emergency expenses, you can use a Citi personal loan to meet them. You can use the loan proceeds for almost any personal purpose, except for post-secondary education or business purposes.	Funding personal projects. Are you planning a home renovation, dream vacation, or need funds for a special event? Wells Fargo personal loans can provide you with the financial flexibility to make your personal projects a reality. Buying a home. If you're in the market for a new house or looking to refinance your existing mortgage, Wells Fargo mortgage loans are designed to help you navigate the home buying process. It offers competitive rates and various loan programs to suit your specific needs. Financing small business. Wells Fargo understands the importance of small businesses in the economy. Its business loans can provide the capital you need to start or expand your business, purchase equipment, manage cash flow, or make necessary investments to help your business grow. Buying a new car. If you're in the market for a new car, Wells Fargo auto loans can provide you with the financing you need. Whether you're buying a new or used vehicle, its loan options can help you secure competitive rates and convenient repayment terms. Making home equity. Homeowners who have built up equity in their homes can leverage that equity with Wells Fargo home equity loans or lines of credit.
Pricing	Citi loans attract interest rates that oscillate from 8.99% to 20.99%. The exact amount you pay depends on your credit score. Plus, you get an instant 0.5% APR discount if you sign-up for automatic payment. Citi charges no origination fees and prepayment penalties. However, it imposes a $25 return-check fee and a $25 late payment fee. Citi offers loan amounts from $2,000 to $30,000 with up to five years repayment term.	Wells Fargo's loans come with an APR from 7.49% to 23.74%. Wells Fargo neither charges origination fees nor imposes prepayment penalties. But you pay a $39 late payment fee—and $39 return-check fee. Wells Fargo offers loan amounts from $3,000 to $100,000 with repayment term up to 84 months.
Standout Features	Offers rate discount for qualifying customers. Charges no origination fee. Gives quick funding Features a wide range of repayment terms	Offers relationship discounts for qualified customers. Attracts no origination fee. Charges no prepayment penalty. Offers fast funding Gives a higher loan amount.

Citi vs Wells Fargo Loans: Standout Features

Citi loans standout features

Rate discount. If you’re a Citibank Gold and Priority Package customer and apply for the loan, you get a 0.25% rate discount. This means you can pay less interest on the loan if you have a qualifying account with Citi.
No origination fee: Citi does not charge any origination fees for processing your loan application, which can save you money compared to some other lenders .
Quick funding. The financial institution can disburse your loan funds within one to five business days after approval, depending on how you choose to receive them . This can help you cover your expenses faster.
Wide range of repayment terms. Get flexible loan terms from one to five years, depending on the amount you borrow and your preference. That means you have more options to choose a loan term that suits your budget and goals

Wells Fargo loans standout features

Relationship discount. Get an automatic offer of 0.25% to 0.50% rate discount if you have a Wells Fargo checking account and make automatic payments from a Wells Fargo deposit account .
No origination fee. You pay Wells Fargo no origination fees for processing your loan application. This is a perk you don’t get from other lenders.
No prepayment penalty. Do you want to clear your debt before the agreed-upon time? Wells Fargo does not charge you any prepayment penalties for paying off your loan early.
Fast funding. The financial institution disburses your loan funds on the same day or the next business day after approval, depending on how you choose to receive them .
High loan amount limit. Wells Fargo offers personal loans from $3,000 to $100,000, which is higher than what some other lenders offer. This can help you finance larger projects or purchases.

Pros and Cons of Citi Loans

Offers competitive interest rates.
Gives flexible repayment options.
Features a wide range of loan products available.
Projects quick and easy application process.
Offers online account management.
Provides access to additional banking services.

Demands strict eligibility requirements.
Charges late payment fee.
Runs a limited branch network in some areas.
Makes credit history and income verification necessary before approving a loan application.

Pros and Cons of Wells Fargo Loans

Charges no origination fees and doesn’t impose prepayment penalties.
Allows pre-qualification with a soft credit check before officially applying for the loan.
Features different repayment terms.
Offers APR discount for existing Wells Fargo customers.
Allows same day funding upon loan approval.

Makes no room for co-sign or joint loan option.
Makes no direct payment to creditors for its debt consolidation loan.
Serves mainly Wells Fargo customers. If you’re a non-Wells Fargo customer, you must visit the bank’s physical branch to apply.

Citi vs Wells Fargo Loans: Customer Reviews

Unfortunately, both Citibank and Wells Fargo do not have credible customer reviews on Better Business Bureau (BBB) and on TrustPilot.

Citibank has a bad rating of 1.2-star based on 287 customer reviews on TrustPilot. One angry person speaks of having an unethical, scam, and horrendous experience with the financial institution. Then you have Wells Fargo. It also attracts a bad rating of 1.7-star based on 213 customer reviews. An angry customer talks about Wells Fargo’s bad customer support and unfriendly team.

Don’t forget that the reviews capture the banks’ entire services and not only about their loan products.

Citi and Wells Fargo Loans Competitors

Chase Bank Loans

If you’re considering a better alternative for Citi and Wells Fargo loans, Chase is a great option to explore. It offers different possibilities for accessing funds seamlessly. If you have a Chase credit card, you can use My Chase Loan to turn your available credit into a lower-APR loan, without requiring any application or credit check.

Choose the loan amount and repayment term and expect the funds directly into your bank account. You can also pay off the loan early with no fees. If you don’t have a Chase credit card, you can apply for one online or in person at a Chase branch. Chase offers a variety of credit cards with different benefits and rewards, such as cash back, travel points, or 0% intro APR.

Thanks to Chase, you can apply for a variety of loans, including home loan, mortgage refinancing, and more. Chase offers affordable lending options, including FHA loans and VA loans, which can help you buy or refinance your home. You can also use its affordability calculator and look for homebuyer grants in your area. The possibilities are countless with Chase.

Bank of America Loans

Bank of America offers a variety of banking, credit card, loan and investing products and services. You can choose from different types of loans, such as personal loans, auto loans, home loans, student loans and business loans. Check your credit score and understand the bank’s qualification requirements before you submit your loan application.

Pro Tips

Getting a loan is not difficult provided you have a good credit standing. Yet, you need to understand the best practices before deciding for a loan product. Ensure you:

Maintain a good credit score.
Shop around and compare loan offers.
Prepare all necessary documentation in advance.
Understand the terms and conditions of the loan.
Borrow only what you need and can afford to repay.

Recap

Citi and Wells Fargo are both well-established banks that offer a range of loan options for different purposes. However, they also have some differences in terms of interest rates, fees, features and reputation that may affect your decision. While Chase may be your best option especially if you require a lower loan amount and fast funding, you still have to compare the pros and cons of each bank carefully and choose the one that best matches your goals and preferences.