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Citi

December 5th, 2007 by Shenron

If you’re new to the spectrum of credit, let Citi help you make the transition.  In case you haven’t heard of it before, Citi is a company that offers credit cards.  What are credit cards?  They are an alternative payment option that allows you to purchase merchandise or services without having to use cash upfront.  You can continue making purchases until you reach your account limit.  In return for this privilege, you have to pay the credit card company a monthly fee, which is determined by the interest rate they charge, which is referred to as Annual Percentage Rate, (also known as APR).  When you pay your credit card bill on time, you will be reported positively to credit reporting bureaus, which specialize in calculating your credit score.  This score determines how reliable you are in paying your bills, and is necessary if you plan on making bigger purchases, such as mortgages or car loans.  Even if you prefer to pay cash each time you buy something, you should still get a credit card to help maintain a good credit score.

Thanks to Citi getting a decent credit card is not a problem.  Newbies to the credit card world should consider getting Citi credit cards with lower interest rates.  These include their “Introductory Purchase” line of credit cards or their student credit cards.  Both of these offer very low introductory APRs, (in some cases the APRs start off at zero).  Alternatively, you could consider using the company to get a secured credit card.  Secured credit cards require an initial payment before they can be used.  Once the payment is received, a person will get double or triple that amount in their credit card limit.

These are a great way to try and get a larger credit card limit, especially if you haven’t established credit before.  Of course, if these options don’t suite you, you can opt to use Citi for a prepaid credit card.  Prepaid credit cards work by you depositing a certain amount of money onto them.  Whatever amount you deposit is your credit limit.  You do not have to make any monthly fees when using prepaid credit cards, yet you still get a boost in your credit score.  Indeed, prepaid credit cards are a great way to help manage your budget while establishing your credit history.

Once you get abreast of how credit works, you can get more credit cards through Citi.  Your next credit card from this company should probably be one of the ones that offer rewards.  How do credit card reward systems work?  Basically, each time you make a purchase, you accumulate points.  These points can be redeemed for merchandise or travel rewards.  You could also get a credit card with a cash-back reward system.  With a cash-back reward system, a percentage of your purchase is returned back to you in the form of cash.  You would get sent a check when your cash balance reaches a certain amount.  That’s definitely not a bad deal – getting paid to buy things.

In conclusion, you’ll want to consider getting a credit card to establish your credit history and have an alternative means of making purchases, (especially if you do a lot of online shopping).  Start your credit card venture with those offering lower APRs, and then work your way to other types, such as secured credit cards, prepaid credit cards or reward-based credit cards.  Make sure you pay all your bills on time and within a few months; you’ll see a pleasant number on your credit report. This can eventually lead to a successful financial future for you and your family.

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