Citi Credit Card Questions

[CycloWizard]

I have a couple questions about getting a new credit card. I have decided (I think) that I want to apply for the Citi CashReturns card. I am 26, currently have no credit cards or other forms of debt other than about $100k in student loans (also through CitiBank). I'm a grad student bringing in about $25k/year.

So, two questions:
1. How selective is Citi in handing out this (or other) card?
2. What will my credit limit be (ballpark)?
3. How long will it take them to reach a decision?

I need a card fairly soon for a large purchase that I have nearly all of the cash for, and this appears to be a very good card to have, but I'd rather not hurt my credit rating by applying for something that they are not going to give me.

Update:

My application was denied because "Your credit bureau report shows you have no revolving
accounts with a balance." I would have thought that that was a positive. I guess these bastards don't make money off of people who don't carry a balance.

 

[MixMasterTang]

Originally posted by: CycloWizard
I have a couple questions about getting a new credit card. I have decided (I think) that I want to apply for the Citi CashReturns card. I am 26, currently have no credit cards or other forms of debt other than about $100k in student loans (also through CitiBank). I'm a grad student bringing in about $25k/year.

So, two questions:
1. How selective is Citi in handing out this (or other) card?
2. What will my credit limit be (ballpark)?
3. How long will it take them to reach a decision?

I need a card fairly soon for a large purchase that I have nearly all of the cash for, and this appears to be a very good card to have, but I'd rather not hurt my credit rating by applying for something that they are not going to give me.

Most cards that you apply for online give you an instant decision, if they do not then do not hold your breath on getting approved. It will mainly be based on your Credit Score and length of Credit. I wouldn't expect more than 4 or 5k limit at the most, but based on you not having any credit cards I wouldn't even think this high.

And ohhh yeah - make sure you pay off your balance on time every month, otherwise don't bother.

 

[shocksyde]

Originally posted by: CycloWizard
So, two questions:
1. How selective is Citi in handing out this (or other) card?
2. What will my credit limit be (ballpark)?
3. How long will it take them to reach a decision?

First, learn to count.

Second, it differs for everyone.

 

[SoulAssassin]

Just apply for it. Better yet, apply for a crap load of cards the same day so they don't know about the other inquiries and you get approved for everything.

 

[Parasitic]

Originally posted by: MixMasterTang

Originally posted by: CycloWizard
I have a couple questions about getting a new credit card. I have decided (I think) that I want to apply for the Citi CashReturns card. I am 26, currently have no credit cards or other forms of debt other than about $100k in student loans (also through CitiBank). I'm a grad student bringing in about $25k/year.

So, two questions:
1. How selective is Citi in handing out this (or other) card?
2. What will my credit limit be (ballpark)?
3. How long will it take them to reach a decision?

I need a card fairly soon for a large purchase that I have nearly all of the cash for, and this appears to be a very good card to have, but I'd rather not hurt my credit rating by applying for something that they are not going to give me.

Most cards that you apply for online give you an instant decision, if they do not then do not hold your breath on getting approved. It will mainly be based on your Credit Score and length of Credit. I wouldn't expect more than 4 or 5k limit at the most, but based on you not having any credit cards I wouldn't even think this high.

And ohhh yeah - make sure you pay off your balance on time every month, otherwise don't bother.

Not true. I didn't get an instant decision with Citicards, but after 2 weeks the card comes in the mail with $3-$5k credit line.

 

[CycloWizard]

Originally posted by: shocksyde

Originally posted by: CycloWizard
So, two questions:
1. How selective is Citi in handing out this (or other) card?
2. What will my credit limit be (ballpark)?
3. How long will it take them to reach a decision?

First, learn to count.

Second, it differs for everyone.

Fourth, I'm getting a PhD in engineering. I can no longer count without MATLAB or, at the very least, my calculator.

 

[LS20]

1. probably give you one
2. citibank is middle of the road as far as credit "generosity". for someone with no experience... 3k?
3. should be either instant or atleast <2 wk

 

[CycloWizard]

Says they'll contact me within 30 days.

 

[kranky]

I have never once gotten an "instant approval" when applying for cards but I have gotten every card I applied for.

 

[Boztech]

Originally posted by: CycloWizard
I need a card fairly soon for a large purchase that I have nearly all of the cash for, and this appears to be a very good card to have, but I'd rather not hurt my credit rating by applying for something that they are not going to give me.

If you have nearly all the cash for your large purchase, you would be wise to just wait and save/scrape up enough cash to pay for it all in cash.

Can I ask what the large purchase is for?

You won't need a good credit rating if you plan on paying cash for everything except a mortgage, at which point you can find a lender who is professional enough to do their own underwriting and your FICO will be of no consequence.

 

[Viper GTS]

Originally posted by: Boztech

Originally posted by: CycloWizard
I need a card fairly soon for a large purchase that I have nearly all of the cash for, and this appears to be a very good card to have, but I'd rather not hurt my credit rating by applying for something that they are not going to give me.

If you have nearly all the cash for your large purchase, you would be wise to just wait and save/scrape up enough cash to pay for it all in cash.

Can I ask what the large purchase is for?

You won't need a good credit rating if you plan on paying cash for everything except a mortgage, at which point you can find a lender who is professional enough to do their own underwriting and your FICO will be of no consequence.

There are lots of advantages to using a CC vs cash:

- Cash back
- Free extended warranties, theft/damage insurance, etc.
- Insulation between the vendor & your money

Assuming you have the cash to pay for something and a credit card your best bet is buy with the credit card, then pay it off with the cash.

And credit affects all kinds of things these days. In the last year alone I've had credit checked for insurance, an apartment rental, a comcast set-top box, new cell phone service, and probably other things I'm forgetting. Good credit is ALWAYS useful.

Viper GTS

 

[Boztech]

I understand the "advantages" of CC use, except that the average American has over $8,000 in CC debt and 66% of Americans do not pay off their balance in full every month. It is a slippery slope for debt that allows a person to easily live beyond his means.

This is also why we have a negative savings rate in this country since 2005. As you can see from the OP's post, he's wanting to use a CC to pay for a large purchase before he can afford it, even though he claims to have almost all of the cash on hand - not financially responsible behavior.

Also, what do you mean by "insulation between the vendor & your money"? If it's zero liability fraud protection you're referring to, a debit card with a Visa logo has the same protection (and restrictions) as a Visa logo credit card.

 

[CycloWizard]

Originally posted by: Boztech
If you have nearly all the cash for your large purchase, you would be wise to just wait and save/scrape up enough cash to pay for it all in cash.

Can I ask what the large purchase is for?

You won't need a good credit rating if you plan on paying cash for everything except a mortgage, at which point you can find a lender who is professional enough to do their own underwriting and your FICO will be of no consequence.

I have had credit cards before, never carried a balance, and Chase randomly closed my last account since I didn't use the card for a long time, so my credit should be good. I need to buy it soon, which is the problem. If I had a credit card, then I could buy it now and pay it off within 2 months without accumulating any interest, after which time I'll easily have the money. This, incidentally, is what I used a credit card for previously. It's basically a free 2-month loan on every purchase, with a few additional perks, as long as you pay it off on time...

Unfortunately, due to time constraints, I can't afford to wait that long as I've waited too long already. I'll post about what I'm buying after I buy it, but I can't say just yet. And, like Viper said, it would be nice to have the assurance of buying it with a credit card since this is going to be a fairly large chunk of change that would take me a long time to recoup if something went wrong.

 

[Viper GTS]

Originally posted by: Boztech
I understand the "advantages" of CC use, except that the average American has over $8,000 in CC debt and 66% of Americans do not pay off their balance in full every month. It is a slippery slope for debt that allows a person to easily live beyond his means.

This is also why we have a negative savings rate in this country since 2005. As you can see from the OP's post, he's wanting to use a CC to pay for a large purchase before he can afford it, even though he claims to have almost all of the cash on hand - not financially responsible behavior.

Also, what do you mean by "insulation between the vendor & your money"? If it's zero liability fraud protection you're referring to, a debit card with a Visa logo has the same protection (and restrictions) as a Visa logo credit card.

It sounds to me like he's still preparing, and would have the cash by the time he makes the purchase. Regardless unless someone has no self control there's no reason not to have CC's.

By insulation I meant a buffer in case of billing errors, vendor disputes, etc. Debit cards are nowhere near the same since your money is actually gone and you have no direct control over how much comes out and when.

For example: With credit cards an overcharge just means less available credit, with debit it could mean you're completely broke until the money comes back into your account.

Viper GTS

 

[Boztech]

@ cyclo

A credit card will not assure you anything over the use of a debit card (with a Visa logo). I'm not sure what misconception you may have about that.

I work for the world's largest independent CC issuer and I can answer any questions you may have about that.

@Viper

I see your point now. But going back to what I said before, a financially responsible person would always have enough cash in their checking account to cover purchases even if overcharged, plus a 3-6 month emergency fund linked to your checking account in case you ever do manage to get overcharged to the point of becoming "broke." I can tell you that any fraudulent charges if reported promptly can and will be refunded within 1 business day for a Visa logo debit card. Personally I find it highly unlikely you would ever be overcharged for a purchase in the first place, given that you can check the physical receipt at the purchase location or verify the amount before and after placing an order if purchasing online.

Anyway, just putting in my daily effort to try to help people avoid debt.

 

[Indolent]

this comment is off topic, but wow, that's a lot of student loans. Is it safe to assume that's more than just undergrad?

 

[Viper GTS]

Originally posted by: Boztech
@ cyclo

A credit card will not assure you anything over the use of a debit card (with a Visa logo). I'm not sure what misconception you may have about that.

I work for the world's largest independent CC issuer and I can answer any questions you may have about that.

@Viper

I see your point now. But going back to what I said before, a financially responsible person would always have enough cash in their checking account to cover purchases even if overcharged, plus a 3-6 month emergency fund linked to your checking account in case you ever do manage to get overcharged to the point of becoming "broke." I can tell you that any fraudulent charges if reported promptly can and will be refunded within 1 business day for a Visa logo debit card. Personally I find it highly unlikely you would ever be overcharged for a purchase in the first place, given that you can check the physical receipt at the purchase location or verify the amount before and after placing an order if purchasing online.

Anyway, just putting in my daily effort to try to help people avoid debt.

But why should you take that risk when there are companies literally begging to assume it for you? You can preach financial responsibility all you want but a simple mis-placed decimal could put a huge dent in even the well prepared.

And I have been overcharged - I bought a bike online & was double charged. Absolutely nothing I could have done to prevent it, my card was actually charged twice for identical amounts. According to a quick google search banks have up to 20 days to return funds. 1 business day is highly unlikely in most cases.

Viper GTS

 

[Boztech]

Originally posted by: Viper GTS

Originally posted by: Boztech
@ cyclo

A credit card will not assure you anything over the use of a debit card (with a Visa logo). I'm not sure what misconception you may have about that.

I work for the world's largest independent CC issuer and I can answer any questions you may have about that.

@Viper

I see your point now. But going back to what I said before, a financially responsible person would always have enough cash in their checking account to cover purchases even if overcharged, plus a 3-6 month emergency fund linked to your checking account in case you ever do manage to get overcharged to the point of becoming "broke."

But why should you take that risk when there are companies literally begging to assume it for you? You can preach financial responsibility all you want but a simple mis-placed decimal could put a huge dent in even the well prepared.

Viper GTS

A mis-placed decimal on a CC does just the same, it could put you over limit - which in turn causes a (typically) $39 over limit fee, and technically puts you in default to your card agreement and subject to the default rate (typically 24%+) at their discretion.

It is important to note that a CC will not be rejected on a POS transaction for NSF.

 

[Viper GTS]

Originally posted by: Boztech

Originally posted by: Viper GTS

Originally posted by: Boztech
@ cyclo

A credit card will not assure you anything over the use of a debit card (with a Visa logo). I'm not sure what misconception you may have about that.

I work for the world's largest independent CC issuer and I can answer any questions you may have about that.

@Viper

I see your point now. But going back to what I said before, a financially responsible person would always have enough cash in their checking account to cover purchases even if overcharged, plus a 3-6 month emergency fund linked to your checking account in case you ever do manage to get overcharged to the point of becoming "broke."

But why should you take that risk when there are companies literally begging to assume it for you? You can preach financial responsibility all you want but a simple mis-placed decimal could put a huge dent in even the well prepared.

Viper GTS

A mis-placed decimal on a CC does just the same, it could put you over limit - which in turn causes a (typically) $39 over limit fee, and technically puts you in default to your card agreement and subject to the default rate (typically 24%+) at their discretion.

It is important to note that a CC will not be rejected on a POS transaction for NSF.

One phone call to dispute the charge & you'd have no adverse response.

You are really reaching here.

Viper GTS

 

[CycloWizard]

Nope, all undergrad debt. Don't get an athletic scholarship to a private school, then hurt yourself.

 

[CycloWizard]

My application was denied because "Your credit bureau report shows you have no revolving accounts with a balance." I would have thought that that was a positive. I guess these bastards don't make money off of people who don't carry a balance.

 

[Kalvin00]

Well, true...I think i've seen some places that actually deny people with good credit because they aren't bound to make money off them.

But I think in this case they're referring to how you have no other CCs....only loans. (IE: not enough credit)

 

[imported_LoKe]

Originally posted by: Kalvin00
Well, true...I think i've seen some places that actually deny people with good credit because they aren't bound to make money off them.

But I think in this case they're referring to how you have no other CCs....only loans. (IE: not enough credit)

How can you get a CC if they won't accept you because you don't have a CC?

 

[BigJ]

Originally posted by: LoKe

Originally posted by: Kalvin00
Well, true...I think i've seen some places that actually deny people with good credit because they aren't bound to make money off them.

But I think in this case they're referring to how you have no other CCs....only loans. (IE: not enough credit)

How can you get a CC if they won't accept you because you don't have a CC?

Secured CC baby!

 

[Kalvin00]

Originally posted by: LoKe

Originally posted by: Kalvin00
Well, true...I think i've seen some places that actually deny people with good credit because they aren't bound to make money off them.

But I think in this case they're referring to how you have no other CCs....only loans. (IE: not enough credit)

How can you get a CC if they won't accept you because you don't have a CC?

Don't try to get a high-end card when you have no credit?