Getting a credit card?
What do you look for in a credit card? Discounts, rebates, rewards points or perhaps miles, can all attract a Filipino. But are these the most important factors to check.
While credit cards have gained popularity over the years, Filipinos have mixed feelings about it. Some are excited to use these plastic cards to go shopping spree. Others view it as a ticket to spiraling debts.
Credit cards are actually two-edged swords. While it gives exciting benefits, it is also a huge financial responsibility since it has high-interest rates and other fees which you must know.
Citibank also offers various credit cards. Each has its own appeal. On the other hand, arm yourself with the knowledge on how you will be charged with its interests.
In this article, you will learn how Citibank computes the credit card interest charge.
I am not spoiling the fun. First, we’ll see what Citibank Credit Cards have to offer.
Citibank Credit Card: Rebates Cards
Citi Cash Back® Card
Get a maximum rebate of 6% if you purchase a minimum amount of P10,000 on non-supermarket and non-Meralco payments. Take note that if you do not reach the required minimum purchase, you can only get 0.20% rebate. You can use your rebates for supermarket purchases and Meralco bills.
Shell Citi® Card
You need to spend at least P10,000 on outstore purchases to get up to 5% rebate on Shell fuel products. You can also get up to 5% rebates on toll fees South Luzon Expressway and North Luzon Expressway and all auto shop repairs.
If you spend less than P10,000, then you can only get 3% rebates for Shell Fuel Purchases. You will not have the Toll Rebate and Auto Shop Rebate.
Outstore spends include purchases in dining, supermarket, health, shopping, and utilities. Take note that the rebates are capped up to P10,000 a year.
Mercury Drug Citi® Card
Get up to 10% rebate on Mercury Drug purchases and hospital bills for a minimum spend of P10,000 on non-Mercury products. You’ll get 5% rebates if you spend at least P5,000. Any purchase below P5,000 will give you 2% rebates. The rebates are capped at P800 per billing statements.
Citibank Credit Card: Travel Card
Citi® PremierMiles® Card
You can earn miles for as low as P30 and redeem for flights and hotel stays instantly. Access complimentary international airport lounge and you may enjoy 24/7 Visa Signature Concierge service.
Citibank Credit Card: Rewards Cards
Citi Rewards® Card
Cardholders of this card can earn never-expiring rewards points. Every P30 is equivalent to 1 Reward Point. Points are multiplied to three when you shop, dine or book Cebu Pacific tickets. the points may also be converted to annual fees.
Citi Prestige Card
This card gives a complimentary fourth night. This means that if you book for four nights, you just need to pay for the three. It also comes with unlimited complimentary access to over 800 VIP airport lounges worldwide through Priority Pass™.
Citibank Credit Card Promo
- Up to 50% off at Bubba Gump (Valid until June 30, 2017)
- Up to 75% off at Klook Travel (Valid until December 31, 2017)
- New UBER users can get 2 free rides up to P150 each when they use the promo code: NEW2UBER.
Citibank Credit Card Features
- Citi Balance Transfer (BT) Facility
This feature allows you to transfer your existing non-Citi credit card balances to your Citibank credit card. The amount will be charged on your credit limit. This means that the amount you request for balance transfer must not exceed the credit limit of your Citi Credit Card.
You will be charged with a disbursement fee of P250. The cancellation fee is 4% of the approved amount.
- Citi PayLite Installment Plan
You can pay for select goods in installments. The applicable interest rates and other fees may vary depending on the particular Citi PayLite merchant. Upon charging, the whole price of the item will be credited from your credit balance. Then you can regain your credit balance gradually as you pay your installments each month.
- Citi PayLite After Purchase Facility
This gives you the ability to convert a straight single-receipt Retail Transaction to an installment transaction.
- Citi Call for Cash Facility
You can withdraw cash with your Citi Credit Card. Get your requested amount through checking/savings account, or in the form of a Manager’s Check. Citi Call for Cash Manager's Check Delivery is charged with P50. Cancellation will incur 4% of the unbilled requested amount.
- Citi Cash Advance
Get cash from ATMs with your Citi Credit Card. Think of this as an instantly approved loan. However, take note that you will be charged with the monthly interest rate of 3.64%. The interest rate is apart from the Citi Cash Advance Service Charge which is P500 or 3% of Citi Cash Advance Amount. You will be charged on a daily basis until you settle the full amount and corresponding fees.
How Interest is computed:
Step 1 Check your bill. You will see the daily balance.
Multiply each daily balance by the daily Interest rate. The daily interest rate is the monthly interest rate divided by 30. You will get the daily interest charge.
Do not compute Interest on any credit balance. If there is a balance, let it be.
Step 2 Repeat Step 1 for each day in the billing period.
Step 3 Add all the daily Interest. That will be the total Interest for the billing period.
Step 4 For Retail Interest only: If you pay the total amount due each month. There will be no charged interest.
If you have a balance, the Total Interest for the billing period computed in Step 3 is added to the Overdue Interest from the previous billing period.
Key Points Take Note
If you pay on time, you will not be charged with the interest rate, however, if you use the other features, expect to pay more fees and charges. Take the time to learn other possible charges to avoid bill shock.
Also do not get carried away with the features, rebates, rewards, and miles. These have terms and conditions to be satisfied. They are used to encourage you to spend more when in fact you must focus on an option that gives benefits while taking care of things you actually need.
If you need to make an immediate purchase, but you do not have enough cash, then you can just get an online personal loan from Cash Mart. Cash Mart offers quick cash loans with flexible payment options.
Want to know more? Check CashMart.ph for more details on how to smoothly avail a loan online.