Pay off credit card debt at a lower rate and get the convenience of fixed monthly instalments with a Fixed Payment Option from Citi.
The Citi Fixed Payment Option lets you pay off your credit card debt in instalments, with a fixed monthly repayment amount and a reduced interest rate for the eligible debt. This can make it easier to pay down your credit card balance and may reduce the risk of ongoing debt.
Use this guide to learn more about Citi’s Fixed Payment Option for credit cards, including what balances are eligible and how repayments work so that you can decide if this instalment plan service is right for you.
How does Citi’s Fixed Payment Option for credit cards work?
This is an instalment plan option that’s designed to help you pay off eligible Citi credit card debts over a nominated amount of time. Depending on your debt and budget, you could choose to pay off your balance over 3, 12, 24 or 36 months.
The Fixed Payment Option is available for two different types of balances:
- New purchases. You can set up a Fixed Payment Option for up to five recent purchases as long as each purchase is worth at least $500. To be considered a “new” purchase, the transaction must not be listed on your most recent credit card statement.
- Cash out. The Fixed Payment Option service also lets you choose an amount between $500 up to your available credit limit that Citi will then send you as a cheque. You’ll then pay off this amount in instalments over your nominated period of time.
How do I set up a Fixed Payment Option on my Citi credit card
You can apply for a Fixed Payment Option by logging in to Citibank Online and clicking on the “Offers” tab. If you have an offer available, click on it and follow the prompts to set up your instalment plan.
Alternatively, you can contact Citi on 13 24 84 or through the online contact form to request more information about when you could be eligible for this option. Note that Fixed Payment Options are subject to eligibility criteria and approval.
Making credit card repayments with a Fixed Payment Option plan
If you’ve requested a Fixed Payment Option on your Citi credit card, your first monthly instalment will be billed on the second statement after the plan has been set up. Your monthly repayment amount will then be included on your statement as part of the Minimum Payment Amount.
As with any credit card debt, you’ll need to pay this minimum amount by the due date on your statement to keep your account in good standing.
What if I have another balance on my Citi credit card?
If you have a balance that’s not included in your Fixed Payment Option plan, the minimum amount you have to pay by the due date on your statement will be higher than the monthly instalment amount.
Your credit card statement will include a Fixed Payment Option Summary that shows details of the current debt and repayment terms. This could make it easier to keep track of your Fixed Payment Option balance, as well as any other balance on the card.
Paying more than the minimum amount
If you want to pay off more than the minimum on your statement when you have a Fixed Payment Option, the additional money will automatically be applied to your regular account balance first. If your regular account balance is paid in full, any additional money you pay will go towards your Fixed Payment Option balance.
Using Citi’s Fixed Payment Option
To show you how this type of instalment plan works, let’s say you want to get a new laptop for $1,200 and plan to pay it off over 12 months. If you’re eligible for a Fixed Payment Option, you could simply make your purchase, log in to your Citibank Online account and follow the steps to set up your Fixed Payment Option.
During the set-up process, you would be shown different monthly instalment plan options, with repayments based on the time you want to pay it off and the offer’s interest rate. Whatever the applicable interest rate, it will be factored into your repayments so that the amount you pay each month covers both your purchase and interest charges.
What else do I need to know about Citi Fixed Payment Options?
Keep these factors in mind to help you decide if this type of instalment plan option will work for you:
- Lower interest rates. The interest rate available for your Fixed Payment Option balance varies between offers and monthly terms. For example, you could be offered a different interest rate if you choose a 3-month plan compared to a 24-month plan.
- Credit limit. Your Fixed Payment Option balance uses your credit limit, so it will affect the amount of credit you have available for other spending.
- Minimum payment plan amount. Fixed Payment Option plans are only available for purchases or cash advances worth at least $500.
- Billed purchases. You won’t be able to set up an instalment plan for purchases that have been included on a previous statement.
- Fees. There are currently no additional fees for requesting or using a Fixed Payment Option. Note that interest charges will still apply, as will any other regular account fees, such as your card’s annual fee.
- Payment plan changes. If you have a Fixed Payment Option plan, you can change it to a shorter repayment term at any time by calling Citi on 13 24 84. Note that this will affect your monthly repayments.
- Cancelling a Fixed Payment Option. You can cancel your instalment plan at any time, without early repayment fees, by calling Citi on 13 24 84.
Compare other credit cards that offer instalment plans
If you have a Citi credit card, a Fixed Payment Option could give you more structure for your repayments as well as a lower interest rate on that balance. But remember to factor in any debt that may not be eligible for an instalment plan. It’s also a good idea to check if you have a Fixed Payment Option offer available through your Citibank Online account, or by calling Citi on 13 24 84 so that you can weigh up all the options available to you.