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Citi: Is This a Good Deal?

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Regular Contributor

Citi: Is This a Good Deal?

I called Citi and asked them if I could have 12 months deferred interest because I want to purchase the new iPad Pro without opening a new Apple Barclay account. They offerred to wire me the cost of the new Ipad for a flat rate of 3% and at 0% interest for 12 months. Is this a good deal?

The other option is to open a new Apple Barclay card which would provide 18 months at 0% interest.

American Express Blue Cash Every | Discover it | Citi Double Cash | Capital One Quicksilver | Amazon Store Card | PayPal Credit | J. Crew | Old Navy | All approved in 2015. FICO 08: 796/796/796 (roughly). Garden Club member since 10/13/2015.
Message 1 of 25
24 REPLIES 24
Established Contributor

Re: Citi: Is This a Good Deal?

Well, ask yourself which is the better deal... 3% for 12 months or 0% for 18 months but with a HP for a new tradeline (plus you'd lose that shiny diamond in your sig)... you choose.

 

The Apple card gives you an extra 6 months interest free as well.  I'd go that route personally all else being equal... but if you're gardening for a good reason, or if your scores could lead to a denial or a low starting CL the Citi route might be better.  

 

 

TCL: $4,000. $500 in wallet, remainder locked away to limit spending.

FICO October 2018: EX 792 (10/11), TU 816 (10/19)
FICO November 2018: EX 792 (11/10) 779 (11/22), TU 805 (11/19)
FICO December 2018: EX 795 (12/20), TU 816 (12/19)
Message 2 of 25
Valued Contributor

Re: Citi: Is This a Good Deal?

If I were you, I wouldn't apply for the new card just for that purchase. I don't know much about the Apple card, but I think the promotional financing only works when you first get the card. They don't have ongoing interest-free financing.

I looked at your signature, and you have PP Credit. Can you handle the purchase with 6 months no interest instead? It'd be a hidden purchase, so it wouldn't affect your UTIL.

AMEX | BofA | Barclays | Cap One | Chase | Citi | Discover | GS | PenFed | SYNCB (PP MC, Lowe's, Amazon, PP Credit) | US Bank
Message 3 of 25
Frequent Contributor

Re: Citi: Is This a Good Deal?

According to your signature line you are in good shape for 5/24 either way.
You said Citi would wire you the money.
Can you pay WITH the card and still get the 0% with 3% fee? If you use Double Cash, pay off in a year then your net fee would be 1% after accounting for 2% rewards.
During that time do not use that card for new purchases if new purchases would have interest applied.
Message 4 of 25
Regular Contributor

Re: Citi: Is This a Good Deal?


@imaximous wrote:

If I were you, I wouldn't apply for the new card just for that purchase. I don't know much about the Apple card, but I think the promotional financing only works when you first get the card. They don't have ongoing interest-free financing.

I looked at your signature, and you have PP Credit. Can you handle the purchase with 6 months no interest instead? It'd be a hidden purchase, so it wouldn't affect your UTIL.


It isn't a matter if I can handle it or not; if I can buy with credit and pay zero intererst I'd do it. It builds a stronger credit history and relationship with the bank. I think 3% flat fee is better than PP. The interest I would pay is only $3.33 per month with Citi for a grand total of $39 in interest. And actually, the interest would only be $10.00 since I would be receiving 2% cash back on this purchase.

 

The only problem with opening a new Barclay is that I don't know how much they would give me, not making it worth a hard pull.

American Express Blue Cash Every | Discover it | Citi Double Cash | Capital One Quicksilver | Amazon Store Card | PayPal Credit | J. Crew | Old Navy | All approved in 2015. FICO 08: 796/796/796 (roughly). Garden Club member since 10/13/2015.
Message 5 of 25
Regular Contributor

Re: Citi: Is This a Good Deal?


@TheRationalConsumer wrote:
According to your signature line you are in good shape for 5/24 either way.
You said Citi would wire you the money.
Can you pay WITH the card and still get the 0% with 3% fee? If you use Double Cash, pay off in a year then your net fee would be 1% after accounting for 2% rewards.
During that time do not use that card for new purchases if new purchases would have interest applied.

Yeah, that's what I figured. I would get back $29 dollars for the purchase so the true interest I'm paying is only $10.

American Express Blue Cash Every | Discover it | Citi Double Cash | Capital One Quicksilver | Amazon Store Card | PayPal Credit | J. Crew | Old Navy | All approved in 2015. FICO 08: 796/796/796 (roughly). Garden Club member since 10/13/2015.
Message 6 of 25
Frequent Contributor

Re: Citi: Is This a Good Deal?

While the Apple Card is good for 0 financing. It’s not a great overall card. Barclays is also known to lower limits and close with little use.

Message 7 of 25
Valued Contributor

Re: Citi: Is This a Good Deal?


@10022016 wrote:

@imaximous wrote:

If I were you, I wouldn't apply for the new card just for that purchase. I don't know much about the Apple card, but I think the promotional financing only works when you first get the card. They don't have ongoing interest-free financing.

I looked at your signature, and you have PP Credit. Can you handle the purchase with 6 months no interest instead? It'd be a hidden purchase, so it wouldn't affect your UTIL.


It isn't a matter if I can handle it or not; if I can buy with credit and pay zero intererst I'd do it. It builds a stronger credit history and relationship with the bank. I think 3% flat fee is better than PP. The interest I would pay is only $3.33 per month with Citi for a grand total of $29 in interest.

 

The only problem with opening a new Barclay is that I don't know how much they would give me, not making it worth a hard pull.


Understood. I figured you were trying to buy on credit because you needed it. That's why I asked if you could make it work in 6 months.

 

Is this money from Citi a promo cash advance from your DC card? If it is, and you won't be using it for new charges till paid off, then go for it. Otherwise, you'll start paying interest the moment you make a purchase on it.

AMEX | BofA | Barclays | Cap One | Chase | Citi | Discover | GS | PenFed | SYNCB (PP MC, Lowe's, Amazon, PP Credit) | US Bank
Message 8 of 25
Valued Contributor

Re: Citi: Is This a Good Deal?

If sounds like what your describing with the 3% fee and 0% interest is really a balance transfer where they just deposit the money into your account instead of sending another creditor a check.

If that’s the case, you can’t use Citi to purchase the item as you can’t BT to the same lender even if it’s a different card product.

I guess you technically could if they deposited the money into your checking account and then used that money to pay a different citi card but that could be a huge 🚩 red flag. I wouldn’t advise doing that.

Your point of view isn’t exactly accurate.
Carrying a balance isn’t going to create a stronger credit profile at all. It could hurt your score depending on utilization increases.
Utilization has no memory so as soon as you pay that balance off it will no longer be displayed on your credit report.

Paying small amounts of a balance doesn’t exactly create a better relationship with a bank either. It shows you extended yourself too far and don’t have the money to pay it off at once.
There are no data points that show that making small payments towards a balance is any better then paying your card off in full. PIF could actually be better because you get the most Fico points for having one small balance reporting and everything else at zero. Aka AZEO

I can see carrying a balance during a 0% if you need to or you stand to make a decent financial gain from putting that money into some interest bearing type of account. But the money you stand to make off $1200 or so isn’t anything I would carry a balance over.




Total Revolving Limits $229,300

FICO 8 scores 04/2019
EX-778
TU-714
EQ-716
Message 9 of 25
Regular Contributor

Re: Citi: Is This a Good Deal?


@imaximous wrote:

@10022016 wrote:

@imaximous wrote:

If I were you, I wouldn't apply for the new card just for that purchase. I don't know much about the Apple card, but I think the promotional financing only works when you first get the card. They don't have ongoing interest-free financing.

I looked at your signature, and you have PP Credit. Can you handle the purchase with 6 months no interest instead? It'd be a hidden purchase, so it wouldn't affect your UTIL.


It isn't a matter if I can handle it or not; if I can buy with credit and pay zero intererst I'd do it. It builds a stronger credit history and relationship with the bank. I think 3% flat fee is better than PP. The interest I would pay is only $3.33 per month with Citi for a grand total of $29 in interest.

 

The only problem with opening a new Barclay is that I don't know how much they would give me, not making it worth a hard pull.


Understood. I figured you were trying to buy on credit because you needed it. That's why I asked if you could make it work in 6 months.

 

Is this money from Citi a promo cash advance from your DC card? If it is, and you won't be using it for new charges till paid off, then go for it. Otherwise, you'll start paying interest the moment you make a purchase on it.


It's 0% for 12 months with a flat fee of $39.00; however, I will be getting 2% cash back on this purchase so the total interest will be on this purchase is $10.

American Express Blue Cash Every | Discover it | Citi Double Cash | Capital One Quicksilver | Amazon Store Card | PayPal Credit | J. Crew | Old Navy | All approved in 2015. FICO 08: 796/796/796 (roughly). Garden Club member since 10/13/2015.
Message 10 of 25
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