After tinkering with its new smart credit card for six months, Citibank is finally unleashing its new Citi.You MasterCard. The card offers the novel ability to customize the card with a name chosen by the cardholder as well as some other special features. However, the card has two advantages and two disadvantages. The "no pre-set limit" enables cardholders to exceed their credit limit based on payment history. Essentially, it allows the card to be used as both a revolving credit card and a charge card. This is especially helpful when traveling, when you may bump into credit limits due to pre-authorized amounts or changed plans. The other advantage is a "grace period on all new purchases." With 95% of the credit cards in use in the USA, cardholders are assessed interest on all new purchases, if they carry a balance forward. It's not a big dollar savings for the average cardholder, but it is an advantage if you make a very large purchase that you intend to pay off quickly. The disadvantages of the card include the high annual fee ($85) and the high, prime +9.9% APR. For each dollar you charge you earn a 1% credit towards various rewards. But other reward cards, including the Citibank American Airlines AAdvantage program, pay a 2.5% credit towards air travel and carry a annual lower fee ($50). Most air miles are worth 2.5 cents each while each Citibank point is worth approximately 1.0 cents. The Prime +9.9% APR is about five percentage points more than a cardholder should be paying. Don't forget, the prime rate was 9.5% less than 16 months ago. Like other smart credit cards in the USA, the smart chip does little more than provide an extra layer of security whenever shopping online. But watch out! Citibank has big plans for both of its smart card products. More applications for the chip are coming and Citi is prepared to ride the wave. For more information visit www.citibank.com.
After tinkering with its new smart credit card for six months, Citibank is finally unleashing its new Citi.You MasterCard. The card offers the novel ability to customize the card with a name chosen by the cardholder as well as some other special features. However, the card has two advantages and two disadvantages. The "no pre-set limit" enables cardholders to exceed their credit limit based on payment history. Essentially, it allows the card to be used as both a revolving credit card and a charge card. This is especially helpful when traveling, when you may bump into credit limits due to pre-authorized amounts or changed plans. The other advantage is a "grace period on all new purchases." With 95% of the credit cards in use in the USA, cardholders are assessed interest on all new purchases, if they carry a balance forward. It's not a big dollar savings for the average cardholder, but it is an advantage if you make a very large purchase that you intend to pay off quickly. The disadvantages of the card include the high annual fee ($85) and the high, prime +9.9% APR. For each dollar you charge you earn a 1% credit towards various rewards. But other reward cards, including the Citibank American Airlines AAdvantage program, pay a 2.5% credit towards air travel and carry a annual lower fee ($50). Most air miles are worth 2.5 cents each while each Citibank point is worth approximately 1.0 cents. The Prime +9.9% APR is about five percentage points more than a cardholder should be paying. Don't forget, the prime rate was 9.5% less than 16 months ago. Like other smart credit cards in the USA, the smart chip does little more than provide an extra layer of security whenever shopping online. But watch out! Citibank has big plans for both of its smart card products. More applications for the chip are coming and Citi is prepared to ride the wave. For more information visit