I’m looking at getting the citi bank credit card for college students, and i have no idea how payment plans work. Do they charge you the whole amount of what you spent that month? or do they charge a consistent fee and you can pay more to work off that debt? please help…

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  dusty_titus · August 16, 2010 at 12:50 pm

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  All credit card have the same options – student ones also. You get a limit (usually 500.00 for the first year) You use your card to purchase items – every month a bill comes and you have the option of paying the Minimum amount or the whole amount that you owe or any amount above the minimum for that month. Each option allows you to control the Interest rate you’ll be paying each month. What you are working for is a lower interest card down the line, and paying no annual fees.

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  Lexi · August 17, 2010 at 10:31 am

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  Let’s say you get a card. And you charge $500. You will get a bill stating your balance is $500 but your minimum payment may only be $15. Whatever you don’t pay back will have interest applied to it.

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  Alex · August 17, 2010 at 5:00 pm

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  I agree with the previous answers. To increase your credit score, never spend more than 30% of the available credit limit. If this is your first card, make minor charges while you’re learning. If you pay the full amount owed each month, interest will not be applied. Interest charges are a percentage calculation based on the balance if it’s not paid in full each month.

  When shopping for a credit card, be sure to read the terms, especially the chart showing fees and APR. You may be able to find a card with a better deal than the one you mentioned.