citi bank ready credit huge new fees.
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Recieved letter today saying they are introducing a $160 annual "credit facility fee"
But they will waive fee if you spend more than $1000 before christmas.A rort.
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I received the letter. I think I will keep it. For the amount of interest I save from this facility, it is worth having it. I pay interest at 4.99% on a significant balance (for the life time of the balance). It is a high fee for a low interest no frills credit card, but it works for me.
so it really depends the use and individual circumstances.
There is a carrot of this fee waiver if you spend $1000.00. But, this is a trap. If you spend $1000.00, you will start paying 17% interet ($170.00 per annum), which will set off the fee that is waived. Any payments that I make will first go to set off the balance at 4.99% and your balance at 17% will keep shadowing you till you wipe off the entire credit.
Just called Citibank re this new fee. I've got a Ready Credit a/c and if I got charged the fee I'd cancel the facility instantly.
Appears from what I could get from the consultant if you only use it for balance tranfers or never use it you will get charged the fee. Basically need to use over 12 months for $1000+ even if you pay it back the following day. It's what i could work out from her.
According to my account I shouldn't get the fee - but time will tell.
There is a carrot of this fee waiver if you spend $1000.00.
Well maybe I will just write a $1000 cheque to myself, bank it into my savings account and BPay it back to Citibank to avoid paying interest.
NM, That is not a bad idea to get myself out from paying the annual fees. If I Bpay it in advance before we write the cheque, Would I still have to pay the interest?
Well maybe I will just write a $1000 cheque to myself, bank it into my savings account and BPay it back to Citibank to avoid paying interest.
This is probably not a good idea if you have debt at the the low balance transfer rate.
It seems to work like this: let's say you have balance transfer debt of $4000 at 4.9% (for the life of the debt they claim). You then use another $1000. The debt is now $4000 @ 4.9% + $1000 @ 15% (or thereabouts). When you pay back the $1000, it will reduce the original balance transfer debt.
So the end result will be $3000 @ 4.9% and still $1000 @ 15%
I didn't read the fine print so they got me on that one.
Well maybe I will just write a $1000 cheque to myself, bank it into my savings account and BPay it back to Citibank to avoid paying interest.
This is probably not a good idea if you have debt at the the low balance transfer rate.
It seems to work like this: let's say you have balance transfer debt of $4000 at 4.9% (for the life of the debt they claim). You then use another $1000. The debt is now $4000 @ 4.9% + $1000 @ 15% (or thereabouts). When you pay back the $1000, it will reduce the original balance transfer debt.
So the end result will be $3000 @ 4.9% and still $1000 @ 15%
I didn't read the fine print so they got me on that one.
...every credit card works like this dude..
however I have noticed westpac and anz ...a portion of your payment goes to each area of your existing balance (BT, OB) you can really see it on the breakdown between the westpac amex and mc/vs
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