Interest rates explained

Helping you understand interest rates

Empowering our customers to take control of their finances means helping you understand how credit decisions impact your ability to borrow and save. Outlining how interest rates are determined—which includes credit score and borrowing history, among other factors—can help you feel confident and secure in working with CitiFinancial.

How are interest rates calculated?

The interest rate you’re offered when you apply for a loan is based on many related factors. Some factors are within your personal control, like your credit score or the loan solution you choose. Others depend on external conditions like inflation. Learn about the different internal and external factors that impact the interest rate you receive.

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How do lenders determine interest rates?

In this video, CitiFinancial Lending Specialist Nanette Doiron answers commonly-asked questions by Canadians about how interest rates are determined.


 

What lending options do you have?

When you’re looking to borrow money, there is a spectrum of lenders to choose from. From bank and credit unions, to bank alternatives, FinTechs and payday lenders, there’s a lender to fit every customer type and borrowing need.

Lenders serve different customers based on credit score and borrowing risk. Banks and credit unions, for example, provide full-service banking to ‘prime’ customers—they take in customer deposits and lend money using the deposits they hold. CitiFinancial is focused solely on lending; we borrow the money that we lend out. That is what makes CitiFinancial different from a bank: we are a money re-lender or retailer, and our products and services reflect that difference.

Who does CitiFinancial serve?

If you’re in the Good to Fair range (prime or fairly close), you may qualify for a loan from CitiFinancial. We’ll work with you one-on-one to make sure the loan solution you choose is right for you. Because with CitiFinancial, you’re getting more than the money you need. You’re getting smart credit with integrity.

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