The Citibank Clear Card markets itself as a low cost yet relatively easy to understand card with a clear charging structure.
The card has a tiered interest structure. This means that for higher amounts of money that are borrowed then the rate will go down. The highest rate is charged at monthly expenditure of up to $250, and the credit card interest rate goes up first at $750, then at $1,500 and then the lowest rate of all is charged at $3,000. The rate of the first $250 is actually a reasonably low interest rate compared to other credit cards.
This means that a person who puts all their daily purchases and expenses on to the Citibank Clear Card will have a very low interest rate.
There are two introductory offers. The first is a low rate interest on all spending in the first six months. This low rate is not a market leading low rate and instead is comparable to the long term low rate cards. The rate is higher than the rate on $3,000 or more monthly spending, and so a borrower may find themselves in the unusual situation of paying a lower interest rate after the first six months have run out.
There is also a low rate balance transfer offer. The balance transfer interest rate is not actually that good compared to many introductory balance transfer offers, which sometimes can be as low as zero. However this rate is permanent and so stays at the very low rate for a very long time. When it is compared to many permanent balance transfer offers the rate is a very good rate. However the balances are paid off before the other higher interest balances, such as the balance that comes as a result of spending. This will mean that the low interest balance will gradually be paid off to be replaced with higher interest cards.
There is no annual fee in the first year of the card, although after the first year an annual fee does start to be charged. There is an interest free grace period of up to 55 days from when a card is used for spending to when the interest starts to be accrued.
The card allows for cash advances which are charged at the same rate as the spending rate. The card is offered by VISA, the world’s largest credit card company.
