Citi credit cards offer an easy and hassle-free way to pay for your purchases. Additionally, you get to enjoy rewards, offers, and discounts on certain spends as well. However, if you use your credit card for purchasing products or services, you would have to pay all your outstanding dues on or before the due date. Failing to do so will attract an interest rate on your Citi credit card to the extent of the total unpaid outstanding balance.
Here’s a quick look at the interest rates charged on different Citi credit cards.
Citi Rewards Credit Card - 3.75% per month (45% per annum)
IndianOil Citi Credit Card - 3.75% per month (45% per annum)
Citi Cash Back Credit Card - 3.75% per month (45% per annum)
IKEA Family Credit Card by Citi - 3.75% per month (45% per annum)
Citi PremierMiles Credit Card - 3.75% per month (45% per annum)
Citi Prestige Credit Card - 3.75% per month (45% per annum)
First Citizen Citi Credit Card - 3.75% per month (45% per annum)
Paytm Credit Card - 3.75% per month (45% per annum)
As a cardholder, it is important for you to be aware of how the interest is calculated on your Citi credit card. The formula that’s used to determine the interest is as follows -
(Total number of days between the due date and date of payment * due amount * annual interest rate) ÷ 365
Here’s an example to help you understand the concept of credit card interest calculation in a better manner.
Let’s say that -
The Citi credit card statement generation date is 13.06.2022.
The amount that you would have to pay is ₹6,000.
The due date for the payment is 02.07.2022.
The date of payment of the due amount is 22.07.2022.
The number of days between the due date and the date of payment is 20 days.
In this case, since you’ve missed the due date, you will incur an interest rate of about 45% per annum on the total outstanding amount for the number of days of delay on your Citi card. The interest you would have to pay would be as follows -
Interest = (20 days * ₹6,000 * 45%) ÷ 365 = ₹148
At the time of payment of your dues, you will have to make a payment of ₹6,148, which includes the interest portion of ₹148.
In case of non-payment of a Citi credit card by the due date, you will have to pay a late fee. The bank charges this late fee on your next credit card bill.
For cash advances, you will be charged 2.5% on the amount withdrawn, subject to a minimum of Rs. 500.
No, if you pay the minimum due amount within three days after the due date, late fees will not be charged. Post this period, the late fee is charged.
You incur the interest on your Citi credit card purchases under the following circumstances.
You pay only the minimum amount due on your Citi credit card.
The amount you pay is lower than the outstanding due on your card.
You do not make your Citi credit card bill payment.
You withdraw cash from an ATM using your Citi credit card.
You buy items on Citi credit card EMI.
The interest-free period is the time frame between the date of purchase of a product to the due date for payment of your credit card bill.
Citibank provides an interest-free period ranging from 17 to 47 days on its credit cards. In addition, you also get a grace period of up to 3 days after the due date. No interest on your Citi credit card will be levied during this grace period.
You can avoid paying interest on your Citi credit card by following the below-mentioned tips:
Pay your total due amount every month in full.
Ensure that you make the payment on or before the due date.
Avoid withdrawing cash using your credit card.
Interest on your credit card is levied under the following circumstances.
When the minimum due amount is not cleared by the due date.
When the credit card is used for cash advances.
When your credit card is used for payment in an international location.