First credit card, have a couple ?'s

Okay, I just got my first card in the mail today, A Citibank Platinum Select card.

On the page that the card was attached to, it has this:

Introductory rate Current APR
Purchase and cash 0.00%
Balance transfer 0.00%
purchase 12.99%
cash advance 19.99%
default rate 28.99%

Introductory rate Current DPR
Purchase and cash 0.00000%
Balance transfer 0.00000%
purchase 0.03559%
cash advance 0.05477%
default rate 0.07942%

Introductory rate U.S. Prime Rate Plus
Purchase and cash N/A
Balance transfer N/A
purchase 7.99
cash advance 14.99
default rate ----



My question is really, what is all of that? and what is the 7.99/14.99... is that a monthly/annual charge? and for what? does it only charge if I use those?


So confused and I can't seem to find help anywhere!

Those interest rates are yearly and only applicable if you make any purchase or loan?

Hi Brida,

Congrats on having your first credit card... Make sure you use it wisely and don't make impulsive purchases. Its very easy to get carried away and spend money you dont have...

The 7.99 means that on purchase of good i.e grocery or a camera etc.. you will have to pay 7.99% interest rate.

14.99% is the interest rate that will be charged on any cash advances you get through ATM using this card...

Special thing to note is the default rate.. which in your case is 28.99% which is quite high... (Default rate applies when you miss one or two payments on any of your bills)

Hope that helps..

have a nice day

Hi just remember if it says introductory rate it is only for a little while.After the introductory rate they can charge you what they want.

[Jeanie]

I am also sure it says somewhere too that they have the right to change fees and such when they want..I have started seeing that as well..

~Jeanie

APR is the Annual Percentage Rate, i.e. the interest rate at an yearly basis. DPR is the Daily Percentage Rate , i.e. the interest rate at a daily basis. Normally DPR is the daily version of APR.

Acc to US laws APR should include the interest rate that the bank charges plus the other fees that they are going to charge.

So that is why the APR is higher than the pure interest that any credit card company charges.

So, the fees mentioned in the offer letter is the amount that you will mandatorily pay and then you will pay interest on the outstanding amount. As Jeannie said, this is only the Introductory Offer, so I guess somewhere in the fine print, they will have a clause on how much it will increase to. Simply call them up and ask this.

Hi manshu,

I'm sharon and i am new on this site, may be i'll like to see some of the credit card details you have available ..

my regards as i await your response.

sharon