[Citibank] Update to interest charging method f...

[Citibank] Update to interest charging method for Credit Cards – w.e.f. Jun 01, 2016

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Effective June 1, 2016, if you are using the revolving credit facility, the closing balance as per your previous statement will accrue interest till the date of full payment of the total amount due.

Full details with illustration
https://www.online.citibank.co.in/portal/Standa...

@DealSeeker @A2Zdeals

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Deal Lieutenant
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Can someone please explain what this is about?

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In other words, it becomes even more important now to pay the CC bill fully on or before the due date.

If you end up in a bad liquidity situation, convert the balance to EMI promptly (18-24% annually) or take a personal loan (14-16% annually) to clear the CC bill fully rather than paying the humongous 40% interest rate.

CC @raghupro

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Deal Lieutenant
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@DealSeeker wrote:

In other words, it becomes even more important now to pay the CC bill fully on or before the due date.

If you end up in a bad liquidity situation, convert the balance to EMI promptly (18-24% annually) or take a personal loan (14-16% annually) to clear the CC bill fully rather than paying the humongous 40% interest rate.

CC @raghupro


That helps, thanks a lot! I went through the link but wasn’t able to make sense, I thought we will be charged a certain interest for the period between due date and date of payment (even if it is before due date). https://cdn1.desidime.com/assets/textile-editor/icon_biggrin.gif

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@raghupro wrote:

That helps, thanks a lot! I went through the link but wasn’t able to make sense, I thought we will be charged a certain interest for the period between due date and date of payment (even if it is before due date). https://cdn1.desidime.com/assets/textile-editor/icon_biggrin.gif


Well, that’s indeed what this update is about. https://cdn2.desidime.com/assets/textile-editor/icon_toungueout.gif

But this special provision applies only if you are using the “revolving credit” facility, which is a complicated term to say that if you are maintaining unpaid balance for more than a month. People who pay their credit card bill in full before the due date and do not have any unpaid balance from previous months are not affected by this policy change.

Please spend two minutes and look at the example given in the PDF to understand this completely.

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Deal Lieutenant
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Thanks op, +kg to you.

Really helpful information.

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@DealSeeker wrote:

@raghupro wrote:

That helps, thanks a lot! I went through the link but wasn’t able to make sense, I thought we will be charged a certain interest for the period between due date and date of payment (even if it is before due date). https://cdn1.desidime.com/assets/textile-editor/icon_biggrin.gif


Well, that’s indeed what this update is about. https://cdn2.desidime.com/assets/textile-editor/icon_toungueout.gif

But this special provision applies only if you are using the “revolving credit” facility, which is a complicated term to say that if you are maintaining unpaid balance for more than a month. People who pay their credit card bill in full before the due date and do not have any unpaid balance from previous months are not affected by this policy change.

Please spend two minutes and look at the example given in the PDF to understand this completely.


What about late payment fees? It was already there then what’s the difference? I use cc regularly, pay up the bill few days before due date and use it again for that momth. Will it effect me? This revolving term is too confusing

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@DealSeeker wrote:

@raghupro wrote:

That helps, thanks a lot! I went through the link but wasn’t able to make sense, I thought we will be charged a certain interest for the period between due date and date of payment (even if it is before due date). https://cdn1.desidime.com/assets/textile-editor/icon_biggrin.gif


Well, that’s indeed what this update is about. https://cdn2.desidime.com/assets/textile-editor/icon_toungueout.gif

But this special provision applies only if you are using the “revolving credit” facility, which is a complicated term to say that if you are maintaining unpaid balance for more than a month. People who pay their credit card bill in full before the due date and do not have any unpaid balance from previous months are not affected by this policy change.

Please spend two minutes and look at the example given in the PDF to understand this completely.


So I understood it well but I was confused about that term revolving credit itself then https://cdn1.desidime.com/assets/textile-editor/icon_biggrin.gif

I have gone through the example but as you said, I didn’t understand what revolving credit was until you explained, thanks once again! https://cdn1.desidime.com/assets/textile-editor/icon_smile.gif

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Deal Colonel
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Tushar ji

There is difference between (a) revolving credit (paying min + but <full instead if full dues)

And

(B) revolving credit limit ( paying full dues and restoring limit by the amount of payment made.

In option no additional intt / penalty is lavied.

Whenever full payment is not made , cc levies intt. On overdues or total outstanding, which could be dangerous to financial health (upto 39% pa + taxes )

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@tusharsethi90935 wrote:

@DealSeeker wrote:

But this special provision applies only if you are using the “revolving credit” facility, which is a complicated term to say that if you are maintaining unpaid balance for more than a month. People who pay their credit card bill in full before the due date and do not have any unpaid balance from previous months are not affected by this policy change.

Please spend two minutes and look at the example given in the PDF to understand this completely.


What about late payment fees? It was already there then what’s the difference? I use cc regularly, pay up the bill few days before due date and use it again for that momth. Will it effect me? This revolving term is too confusing


This policy change does not impact late payment fees, which is charged when you fail to pay even the minimum due amount by the due date.

Once again, you need not be concerned about this policy change unless you are maintaining revolving balance, i.e. unpaid balance on your account for more than a month.

Currently, they do not charge interest if you manage to pay the revolving balance (i.e. unpaid balance maintained for more than a month) and any current charges in full by the due date. But starting from June, they are going to charge interest on the total due amount for each day from the statement generation date if you had revolving balance on the statement, even if you manage to pay the amount in full before the due date. This is the difference.

Hope this makes it all clear for everyone. If somebody is still unclear about this, sorry, but I can’t explain it any simpler without repeating myself.

Kabali
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@DealSeeker just ans Y or N for the below Q.
till june 1st 2016 there was not C, D, F & G wrt example.
starting from 1st june 2016 there would be C, D, F & G wrt example.

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@DealSeeker

is the new policy for only increase in interest rate on outstanding credit ?

normally If we don’t pay the billed amount before/on due date then bank charges 2.5-3.5 per month on outstanding or outstanding minus minimum amount paid plus late payment fine (if min due not paid). UNTILL full bill payment made.

even if there is a unpaid balance over one month(revolving balance) or more than two months. the interest is supposed to be same 2.5-3.5% per month depending on bank.

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@rajrocks wrote:

@DealSeeker just ans Y or N for the below Q.
till june 1st 2016 there was not C, D, F & G wrt example.
starting from 1st june 2016 there would be C, D, F & G wrt example.


No. You are way off.

@punitdd wrote:

@DealSeeker

is the new policy for only increase in interest rate on outstanding credit ?


No. You should read (/reread) my post above.

@DealSeeker wrote:

Hope this makes it all clear for everyone. If somebody is still unclear about this, sorry, but I can’t explain it any simpler without repeating myself.


http://www.desidime.com/forums/dost-and-dimes/t...

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Currently, they do not charge interest if you manage to pay the revolving balance (i.e. unpaid balance maintained for more than a
month) and any current charges in full by the due date.

So City bank used to do not charge any interest on carry over credit card balance(lets say trailing balance past 3 months) ?

eg. If my bill generation date is 15th April .My Due date is 4th May. My bill generated is Rs.10,000 for the duration ( 15 march to 15 April ) If I din’t pay a single penny till next bill generation date i.e 15th May . is the Rs.10,000 called as revolving balance in the bill generated in 15th May ?

@DealSeeker

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@punitdd wrote:

bq. Currently, they do not charge interest if you manage to pay the revolving balance (i.e. unpaid balance maintained for more than a
month) and any current charges in full by the due date.

So City bank used to do not charge any interest on carry over credit card balance(lets say trailing balance past 3 months) ?

eg. If my bill generation date is 15th April .My Due date is 4th May. My bill generated is Rs.10,000 for the duration ( 15 march to 15 April ) If I din’t pay a single penny till next bill generation date i.e 15th May . is the Rs.10,000 called as revolving balance in the bill generated in 15th May ?

@DealSeeker


Yes, add to it interest+late fee+ST all including revolving balance. And this 10K+ attracts interest charges on daily basis till u pay full amount.

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@DealSeeker sorry for bumping the old thread but could you please help me out in finding the threads where Citi bank was running offers on double spending? I didn’t receive any reward yet though I bought alot.

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@BUTTERFLYBOY wrote:

@DealSeeker sorry for bumping the old thread but could you please help me out in finding the threads where Citi bank was running offers on double spending? I didn’t receive any reward yet though I bought alot.


There were two deal threads about the “Top Spend Multiplier” campaigns. The first one was to deceive proactive/heavy spenders like us so we would have difficulty in the real campaign which started a month after. https://cdn2.desidime.com/assets/textile-editor/icon_cry.gif

The second campaign was apparently real, but the cashback for the winners would be credited by Sep 16, 2016. See this post from me for the pre-planned deception by Citibank: http://www.desidime.com/forums/hot-deals-online... CC @disclaimer @A2Zdeals @deallady @raghupro

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@DealSeeker wrote:

@BUTTERFLYBOY wrote:

@DealSeeker sorry for bumping the old thread but could you please help me out in finding the threads where Citi bank was running offers on double spending? I didn’t receive any reward yet though I bought alot.


There were two deal threads about the “Top Spend Multiplier” campaigns. The first one was to deceive proactive/heavy spenders like us so we would have difficulty in the real campaign which started a month after. https://cdn2.desidime.com/assets/textile-editor/icon_cry.gif

The second campaign was apparently real, but the cashback for the winners would be credited by Sep 16, 2016. See this post from me for the pre-planned deception by Citibank: http://www.desidime.com/forums/hot-deals-online... CC @disclaimer @A2Zdeals @deallady @raghupro


I’m too waiting for the reward. It should be automatically credited before Sep 16, 2016.

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@DealSeeker wrote:

@BUTTERFLYBOY wrote:

@DealSeeker sorry for bumping the old thread but could you please help me out in finding the threads where Citi bank was running offers on double spending? I didn’t receive any reward yet though I bought alot.


There were two deal threads about the “Top Spend Multiplier” campaigns. The first one was to deceive proactive/heavy spenders like us so we would have difficulty in the real campaign which started a month after. https://cdn2.desidime.com/assets/textile-editor/icon_cry.gif

The second campaign was apparently real, but the cashback for the winners would be credited by Sep 16, 2016. See this post from me for the pre-planned deception by Citibank: http://www.desidime.com/forums/hot-deals-online... CC @disclaimer @A2Zdeals @deallady @raghupro


Thank you very much for the detailed info. I am also waiting for the same but Sept, 2016 is way far. I feel like Citi got changed alot during last 1.5 years. Earlier its cards were really awesome for rewards and cashbacks but now rewards are less and cashbacks are not very often except the MMT deal every week. Apart from that the gestation period (here used for the duration of cashback to get credited into the account https://cdn2.desidime.com/assets/textile-editor/icon_toungueout.gif ) has really gone up.

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