Established Contributor
Posts: 565
Registered: ‎02-21-2008

Please Help me understand how rates work

Citi Diamond Preferred DISCLOSURES

Annual Percentage Rate (APR) for purchases 0.00% for 9 months from date of account opening for APR 1. After that, 12.24% variable. 0.00% for 6 months from date of account opening for APR 2. After that, 16.24% variable. 0.00% for 6 months from date of account opening for APR 3. After that, 20.24% variable. †

My question is: Are new accounts no longer attached to the prime rate? I only ask because my Citi Card has been at the same rate for 7 months. My PNC Visa Signature has the same

Standard Purchase APR 5.240%.
Senior Contributor
Posts: 4,214
Registered: ‎09-12-2008

Re: Please Help me understand how rates work

"variable rate" = prime plus %


The multiple rates they showed is saying that depending your your credit, you will get one of them.  3 tiers of prime plus a number for that term.



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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Super Contributor
Posts: 5,703
Registered: ‎10-06-2007

Re: Please Help me understand how rates work

If you can, the best way to understand CC interest rates is to not revolve a balance.  If you have to revolve a balance, assume the worst rate and have an exit date for when it will be PIF.


IMHO when and if the new CC law takes effect, it will be a bumpy road interest rate wise until the smoke clears.

11/28/2014 FICO: EQ: 796 EX:788 TU:803
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