Does the Citi Premier Card have a late fee?

The credit score that you need for the Citi Premier® Card is 700, at a minimum. This means applicants need at least good credit for a decent shot at approval. If you’d like to know where you stand, you can check your credit score for free, right here on WalletHub.

Other Citi Premier Approval Requirements... read full answer

The average American will likely find it difficult to meet the Citi Premier credit score requirement, as many people have lower credit scores. But an applicant’s score is only one factor in the approval process. Citi will also consider other things like the person’s income, existing debt load, recent credit inquiries, number of open accounts, and more.

The Citi Premier’s credit score requirement is in line with the requirements for most other Citi credit cards. However, there are a few that are easier to get, such as the Citi® Secured Mastercard®. This card is available to people with limited history.

The best time to pay a credit card bill is a few days before the due date, which is listed on the monthly statement. Paying at least the minimum amount required by the due date keeps the account in good standing and is the key to building a good or excellent credit score. That’s true for everyone, but some people might want to take things a step further, particularly cardholders carrying balances from month to month and people with high ... read full answercredit utilization.

When to Pay a Credit Card’s Bill

1. If you are carrying a balance from month to month:

If you have a credit card balance that you carry from month to month, it’s best to pay that credit card’s bill as soon as the monthly account statement becomes available. This will save you money on interest. Paying the card’s monthly bill in full for two consecutive months will also reduce your interest charges by reinstituting your account’s grace period. Instead of purchases beginning to accrue daily interest charges right after you make them, you will have a window between when your monthly statement becomes available and when your bill is due to pay with no interest.

2. If your balance is up to 30% of your credit limit and you pay in full monthly:

You should simply pay your bill by the due date listed on your monthly statement. This will help you avoid credit score damage, and you will also avoid interest charges if you pay the full balance every month.

3. If your balance is more than 30% of your credit limit:

If the balance listed on your monthly credit card statements consistently equals more than 30% of the card’s credit limit, consider paying your bill multiple times per month. Paying once in the middle of the month and again before the due date will reduce the balance listed on your statement. That, in turn, will lower your credit utilization, which should help your credit score.

Here’s a quick example. Say you have a credit card with a limit of $1,000 and you charge $500 to it, using up 50% of your credit. Then, you make a payment of $300 before the billing period closes and your statement is generated. That brings your statement balance to $200 and your utilization to 20%. Paying off the final $200 before the due date keeps your account in good standing.

Tips for Not Missing a Credit Card Payment

It’s a good idea to set up automatic payments with your credit card issuer so you don’t have to worry about when to pay your credit card bill. Doing so will automatically make a payment from a linked bank account every month on the due date, or a day of your choice before that. You can’t be marked late unless your account has insufficient funds. And even with automatic payments set up, you can still make additional payments any time you want.

For more advice to help you avoid the cost and aggravation associated with missed payments, you can take a look at WalletHub’s tips for never missing a due date.

A credit card grace period is the 21-25 day period between the last day of a credit card’s billing cycle and the minimum-payment due date. Interest charges do not apply when a credit card’s grace period is in effect, giving cardholders the chance to pay their full balance by the due date at no extra cost.... read full answer

The grace period on a credit card only remains in effect when you pay the full statement balance by the due date each month. The grace period goes away when you carry a balance from billing period to billing period, and you have to pay in full 2 months in a row to get it back. Without a grace period, interest is assessed on a daily basis to your full balance, including any new purchases you make.

For example, say your new credit card’s billing cycle is from January 1 through January 31, and you purchase a new couch on January 23. Your credit card bill is due on February 25, which means your grace period is 25 days long, and you won’t have to pay for the couch at all until February 25. If you pay the full statement balance by that date, you won’t pay any interest on the couch. But if you only pay the minimum amount due, you’ll start accruing daily interest charges, and your grace period will disappear – not just for the couch, but for all other purchases you make, until you pay your statement balance in full 2 months in a row.

Not all credit cards offer a grace period. But for those that do, it has to be at least 21 days long. To determine the grace period for a specific credit card, you can refer to your credit card agreement or your latest credit card statement. Grace periods only apply to purchases. Cash advances and balance transfers start getting charged interest immediately.

Pro Tip: Grace periods are a good reason for having separate credit cards for your debt and your everyday purchases. Having a credit card just for everyday purchases that you pay for in full by the end of each grace period will keep your everyday spending separate from any balance accruing interest, thus saving you money on finance charges. This also enables you to focus on getting great rewards with that card, since interest won’t be a concern. Similarly, you can concentrate on getting the best possible interest rates and fees on your other card, the one you designate for carrying a balance from month to month.

In the long run, keeping everyday purchases interest-free by taking advantage of your grace period and getting the right collection of cards for the transactions you plan to make will save you a lot of money.