profit

Citibank has recently introduced a new policy which enables some of their customers to reduce their interest fees, by using their card on a regular basis.

According to the plan, cardholders who spend up to a certain defined limit each month will qualify for the interest rebate. Although it would still be more profitable for Citi, it’s bad for consumers across-the-board.

You can categorize the credit card holders as those who use he card for convenience and those who use it for a short-term loan. The first category usually pays off their balance each month; whereas the second category runs a balance, incurring interest fees.

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Tagged as: balance, cardholder, citibank, convenience, customer, interchange fee, interest fee, interest rate, Money, profit, short-term credit

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