No minimum pay needed for new credit card
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thats a high interest rate
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well said.Originally posted by browniebaobao:debt or not, it depends on ur mentality and how u are gg to use those cards.
I have credit cards and credit lines from 7 different banks. Assuming my credit limit for each is $5000, I have an available of 5000x14 = $70,000 credit limit at my disposal. Imagine the debt I can create.
Ultimately, it's just a financial tool. Some investors I know did 0% balance transfer of their ccd or credit lines. They used the money to invest into unit trusts, some into shares and warrants. End of the day, they actually profited much more than if they were to just use their available cash.
Of course there are others who use the money to buy furniture, etc. Then cannot pay back.
Depends on your mentality, maturity and financial awareness. -
logic is quite clear bah. They're trying to reach out to potential customers when they reach an annual income $30K, to apply for citibank's products and services.Originally posted by KangZ:In case you haven't realised, I am NOT comparing the target audience of 2 different kinds of credit cards. And I also did not state that the Citi Clear Card is meant for people who do not have $500 in the bank. What I am doing is that I am questioning the logic of Citi to launch this product.
The logic of any bank or corporate organization is to create profits for their shareholder. -
WOW!!! 28% Interest!!! Rates almost chasing up loansharks liao!Originally posted by browniebaobao:28% interest on rollover balances..
Let's do a simple calculation...
If I swipe the card for a purchase of $500, and missed payment or simply owe 1 mth, Interest would sum up to be $140!!!
So if I owe bank 4 mths for only $500, the interests would snowball to $560!!
Meaning I hv to pay back $1,060... ...!!! Unbelievable!!
*anyone wants to start a bank wif me?
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Yes you are right. Sorry I should have been clearer in that post.. What I meant is that I guess Citi expects the MAS to relax the rules FURTHER in the future. Thus, even though the $500 limit is a rather small sum, they can't rule out the possibility that the limit will go up in the future. My guess is they wanna corner the mkt before the competitors do.Originally posted by airgrinder:Perhaps I should help clarify. Citibank did not introduce this product into the mkt because the expect MAS to be less stringent. Citibank did that because MAS relaxed their unsecured lending rules. -
Care to share the other ways? I admit the annual fees is not really such a big deal, but hey who can deny it's not a source of income as well? Anyway for something that is not a cash cow product, the competition is pretty intense.Originally posted by airgrinder:That's not the only way bank loan money at a high interest rate.
You think the bank earns from the annual fees? You've got to be joking.
Nope. Credit card is NOT a big cash cow for banks. -
Yup yup that's one reason. I am wondering more on how much more value can this Clear card add to the current users of debit card.Originally posted by airgrinder:logic is quite clear bah. They're trying to reach out to potential customers when they reach an annual income $30K, to apply for citibank's products and services.
The logic of any bank or corporate organization is to create profits for their shareholder. -
Check out the american college students and their debt.
21% of college students graduate with $7000 debt or more.
http://www.youtube.com/watch?v=ct3OsJacTSs -
Interest is at 28% p.a.Originally posted by kerts:WOW!!! 28% Interest!!! Rates almost chasing up loansharks liao!
Let's do a simple calculation...
If I swipe the card for a purchase of $500, and missed payment or simply owe 1 mth, Interest would sum up to be $140!!!
So if I owe bank 4 mths for only $500, the interests would snowball to $560!!
Meaning I hv to pay back $1,060... ...!!! Unbelievable!!
*anyone wants to start a bank wif me?
If you swipe $500 and you missed making full payment on the payment due date, you'll be charge $500 * 0.28 / 365 per day.
$140 is only if you owe them for 1 full year. But then it will not be a correct calculation because of late payment charges and interest on interest charges. -
lol they state u have to input your parents particulars.
I think they will start calling your parents to verify if they actually conscent their children to go ahead with the card.