The Citibank credit card interest rate runs anywhere from a low-end 15.49% for the Double Cash card to a high of 26.49% for the Citi ThankYou Preferred for College Students. Citibank credit card interest rates are often listed as range, from low to high, based on creditworthiness. The higher your credit profile, the better chance you have of landing a lower rate. Some cards, such as the Costco Anywhere and Anywhere Business cards (17.24%) and the Secured Mastercard (24.49%) offer a single interest rate.
Several Citibank credit cards, including the Simplicity and ThankYou Preferred offer introductory 0% interest on purchases and/or balance transfers. Once the introductory rate expires, you will be charged at the regular, or purchases interest rate.
Interest on a Citibank credit card is how much you will be charged if you don’t pay off your entire balance every month. The rate you see on your credit card statement is listed as an annual percentage rate (APR). The “(V)” that accompanies the APR means it is a “variable” rate. A variable interest rate on a Citibank credit card goes up or down, depending on the Prime Rate. There’s also a fixed rate, which does not fluctuate, but credit cards with this type of rate are hard to come by.
Because interest is charged daily, to know your true interest rate, simply divide the APR by 365, the number of days in a year. This is how much you’re charged every day that there’s an outstanding balance on your account. Interest is also compounded, which means if there’s an unpaid balance, interest will apply on top of any interest already accrued.
Citibank credit card interest rates are not limited to purchases and balance transfers. There is a separate rate for cash advances. This rate is often higher than the regular APR, and is recorded on your statement as a separate balance. There is also default, or penalty APR for missed payments or for failing to pay at least the minimum amount due.
You can avoid Citibank credit card interest rates altogether by paying your bill in full every month. Citibank offers a grace period of around 23 days from when your billing period ends until your next payment due date. If you pay in full within that timeframe, interest charges will not apply. You can lose that grace period if you don’t pay off the entire balance for one month. To restore the grace period, you will need to make two straight months of payments in full. The grace period does not apply to cash advance and balance transfers.
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