Citizens One Auto Finance Stops Indirect Car Loan ProgramCitizens One Auto Finance Auto Loan Review: Process, Eligibility, APR, and More!
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Citizens One Vehicle Finance, a part of Citizens Bank, has just changed its vehicle lending practices significantly. As of July 1, 2023, Citizens Financial Group stopped starting indirect vehicle loans, loans given to automobile dealerships that subsequently fund customers. Especially given economic uncertainty, this choice is a component of a larger plan to concentrate on relationship-based lending and control risks connected with the car loan industry.
Citizens Bank still grants direct auto loans for both new and old cars, though. Customers continue to service their vehicle loans on their balance sheet as soon as they apply directly to the bank. The bank provides a variety of financing options, such as consolidating multiple loans or refinancing existing vehicle loans to reduce monthly expenses potentially. You may still apply at the bank for a direct loan to use for auto purchases, but the bank's webpage doesn’t guide this part of Citizens Bank’s offerings. For auto loans from this bank, visit their website or call them.
The information below describes the services Citizens One Auto Finance used to provide.
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Quick Stats
Citizens One Auto Finance at a Glance
Citizens Bank offers Citizens One Auto Finance as a service. Founded in 1828, the bank has its headquarters in Providence, RI. This financing service is available in 47 states nationwide. Citizens Auto Finance offers car loans through dealerships across the country. However, it doesn't issue auto loans directly to consumers, and it doesn't provide pre-approval. After receiving a Citizens auto loan, you can manage your account online. Interest rates and APRs depend on various factors, including eligibility, credit score, credit history, loan amount, and loan term.
Citizens One Auto Finance offers customers car loans with 84 months max. The fact that borrowers can choose longer terms means they can take on larger amounts of auto loans while keeping their monthly payments somewhat affordable. However, the longer your car loan term, the more interest you will pay.
Features & Services
Citizens One Auto Finance offers auto loan terms that range between 48 and 84 months. Borrowers can apply at partnering dealerships across the country.
Anyone can apply for an auto loan because Citizens One Auto Finance does not specify any restrictions as to who can apply for an auto loan. With any lender, you are more likely to get the approval if you have a steady income, a somewhat decent credit score, and a debt-to-income ratio of 43% or lower.
Refinancing your auto loan
Dealerships often apply higher interest rates and add hidden fees to car loans. You cannot change the terms of your loan once you sign it, but you can refinance your car loan by applying for a new loan to pay off the existing one at a lower interest rate.
- Here are a few reasons why you might consider refinancing:
- High monthly payments
- High-interest rates
- Improved credit, qualifying you for better terms
Before refinancing, it's generally necessary to have positive equity, meaning you owe less on the loan than the vehicle’s current value. You may need to pay upfront to refinance if you're behind on your loan.
Application requirements
To start, you’ll need an auto loan quote from Citizens One Auto Finance. Find a participating dealer in your area, and if they offer preapproval or prequalification services, apply for these to determine your exact car budget.
For your initial application, you may need to provide identification, contact information, details about your employment status, Social Security number, and the type of car you’re interested in. When you apply, the lender typically conducts a hard credit inquiry, which can temporarily affect your credit score. To limit this impact, apply to all potential lenders within a 14-day window so that only one hard inquiry will count.
Once pre-qualified, you can begin shopping for your vehicle. Spend some time test-driving the models that pique your interest, but remember that a test-drive does not bind you to a purchase. Choosing not to spend the entire approved amount can result in long-term savings.
After selecting a vehicle, you’ll meet with the dealer to finalize the loan. Carefully review your loan agreement and ask any questions so you fully understand the terms before signing.
To complete the loan process, you must provide documents such as proof of identity, income, residence, insurance, and the financing amount. Citizens One Auto Finance doesn’t specify minimum loan amounts, so you must check with your local dealer. The total loan cost will include the car’s balance, interest, taxes, licensing fees, dealer fees, and optional add-ons like an extended warranty or GAP insurance.
Plans & Prices
Citizens One Auto Finance does not specify a minimum loan amount or APR. Instead, loan rates will vary depending on the dealership you apply to and your financial situation. Generally, loan lenders might charge between 2.99% and 19.99% APRs. Your credit score is one of the most critical factors determining the loan rate percentage.
Borrowers with high credit scores (at least 660) will enjoy the lowest rates. Those with 580-619 or below 580 credit scores will face the highest rates.
Citizens One Auto Finance Customer Service
Citizens One Auto Finance does not offer many customer service options. However, you can still call them by phone at 1-877-265-3278. You can also visit their website and view the information there to help you better understand their services. For further inquiries, you can view their Frequently Asked Questions (FAQs) section.
Bottom Line on Citizens One Auto Finance
Citizens One Auto Finance, part of Citizens Bank, recently shifted its lending strategy by discontinuing indirect dealership loans. Now, Citizens focuses on offering direct auto loans for customers who apply directly through the bank, strongly emphasizing customer relationships and financial stability. While this change limits dealership-based financing options, Citizens Bank continues to provide flexible direct loan services, including consolidation and refinancing options, to make auto financing more manageable.
If you are still looking for an auto loan provider and haven't settled on one yet, we recommend visiting our website. Our reviews provide deep insight into different auto loan companies to help you understand their offerings more. Our blog post will offer more information about the industry and how it can help you have a better financial future. Our comparisons allows you to stack your top choices against each other and compare their pros, cons, unique selling points, and more.
