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Citi: Is This a Good Deal?

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Regular Contributor

Re: Citi: Is This a Good Deal?


@Shadowfactor wrote:
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.

Maybe so, however, my credit score is nearing 800. My utilization is merely 3% as well. 

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 11 of 25
Community Leader
Mega Contributor

Re: Citi: Is This a Good Deal?


@10022016 wrote:

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.


Does Amazon have the item you want? 

Store card has deferred financing up to 24 months, depending on the amount financed 

Message 12 of 25
Established Contributor

Re: Citi: Is This a Good Deal?

Is the option of paying cash or PIFing the purchase after putting on it a card there?  You could simply buy the iPad with your Citi DC, then PIF and enjoy the 2% cash back with no fees or interest at all that way.

 

The only benefit to paying over time w/0% interest is that you can keep your money in an interest bearing account during the time you're paying down the card.  Or if you have no other way of affording the item except by paying monthly.  It doesn't help your scores any over just using and PIFing the card every month, and it may hurt your scores depending on utilization.

 

 

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 13 of 25
Regular Contributor

Re: Citi: Is This a Good Deal?


@LowLimits wrote:

Is the option of paying cash or PIFing the purchase after putting on it a card there?  You could simply buy the iPad with your Citi DC, then PIF and enjoy the 2% cash back with no fees or interest at all that way.

 

The only benefit to paying over time w/0% interest is that you can keep your money in an interest bearing account during the time you're paying down the card.  Or if you have no other way of affording the item except by paying monthly.  It doesn't help your scores any over just using and PIFing the card every month, and it may hurt your scores depending on utilization.

 

 


The question is never about can I afford it. I will always pay with credit whenever it is possible to pay with zero interest. I'd rather have the cash in my pocket work for me while I use other people's money to buy what I want.

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 14 of 25
Valued Contributor

Re: Citi: Is This a Good Deal?

Do you absolutely need an iPad Pro right now? Unless it's work or school related, you should probably save up until you can pay it off in full so that there are zero fees.
Message 15 of 25
Frequent Contributor

Re: Citi: Is This a Good Deal?


@Remedios wrote:

@10022016 wrote:

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.


Does Amazon have the item you want? 

Store card has deferred financing up to 24 months, depending on the amount financed 


The downside to Amazon store card is no protections like extended warranty.

Message 16 of 25
Established Contributor

Re: Citi: Is This a Good Deal?

Why not use your Discover which is offering 5% back on Amazon?

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Message 17 of 25
Valued Contributor

Re: Citi: Is This a Good Deal?


@10022016 wrote:

@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.


I understand that part. I was trying to remind you that if you use the card for any new purchases during the time you're carrying that 0% promo balance, you'll be paying interest (APR for purchases) on any new purchases because you lose your grace period. So, if this is a card you use all the time, it's not a good idea to take the deal unless you can put it away and not use it until your balance is paid off. Otherwise, you will be paying interest on all new purchases. 

AMEX | BofA | Barclays | Cap One | Chase | Citi | Discover | GS | PenFed | SYNCB (PP MC, Lowe's, Amazon, PP Credit) | US Bank
Message 18 of 25
Mega Contributor

Re: Citi: Is This a Good Deal?


@10022016 wrote:


The question is never about can I afford it. I will always pay with credit whenever it is possible to pay with zero interest. I'd rather have the cash in my pocket work for me while I use other people's money to buy what I want.


This can certainly make sense with totally free offers (e.g. standard 0% intro offers on credit cards).   However, in this case there is a 3% charge  (don't count the 2% back as you get this if you use that card and PIF anyway).   So are you going to get more than 3% with this money?  Certainly possible but not trivial with market volatility.    Also, as others have pointed out, if you are unable to use the DC for normal use, there is a cost associated with that too.

 

 

Message 19 of 25
Regular Contributor

Re: Citi: Is This a Good Deal?


@JustBPatient wrote:

Why not use your Discover which is offering 5% back on Amazon?


Thanks for remind me. I still have over 8 months 0% interest on that card. 

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 20 of 25
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