Over the years, many of us have come to take 0% APR credit card offers for granted.  But not very long ago, 0% introductory teaser rates barely existed.    For example, a 1999 article on CNN commenting on trends in the credit card industry wrote:

“There is some good news for people looking to consolidate their credit card balances: Teaser rates have been inching down since late 1997. The typical rate on new teaser rate mailings in the third quarter of 1998 was 4.14 percent, down from 5.33 percent in 1997.”

Not only were introductory rates significantly higher, they were also much less common.  The same 1999 article explains:

“In the third quarter of 1998, only 36 percent of new card offers mailed to consumers included an introductory rate, according to BAIGlobal Inc., a Tarrytown, NY, market research firm. ”

Today, nearly every offer available provides a 0% introductory rate on either purchases, balance transfers, or cash advances.

However, given the current “credit crisis” it is not unreasonable to think the banks may cease giving money away at 0% rates at any time.  Fierce competition and huge profit margins enabled the banks to offer increasingly generous offers to get new customers.  Yet falling profits and concerns about lending could trigger a domino effect in which one bank after another stops offering 0% rates.  It’s happened in the recent past; it could easily happen again.

The Citi CashReturns (SM) Card is popping up in a number of new commercials.  The commercials focus on the cashback rewards program offered by the card.  Here, we will examine the Citi Cash Returns reward program as well as important interest rate information.

At present, the Citi Cash Returns card is offering a 0% APR on balance transfers for up to 1 year, as well as an APR of 10.24% for purchases(accurate as of 4/18/08).  This APR for purchases is well below average for cash back rewards credit cards, which tend to charge higher APR’s to offset the cost of operating a cash reward rebate program.

Earning cash back with the Citi Cash Returns card is a pretty straightforward process:  you earn 1% on all purchases.  Additionally, at the end of your first year as a cardmember, you receive a 20% bonus, effectively raising the cash back rate to 1.2%.  Cash back rewards are automatically dispersed via check once you have amassed $50.

You can learn more about the Citi Cash Returns card by viewing the online application.

Similar Cash Back Credit Cards

Below is a list of related cash back credit cards:

The Citi Professional Cash Card:  Earn up to 3% cashback

The Discover Open Road Card:  Earn 5% cashback on gas purchases

The Citi Dividend Platinum Card:  Earn 5% cashback at gas stations, supermarkets and drug stores, convenience stores, and utilities including cable for 6 months and 2% thereafter.

You can also view all current cash back credit card offers on our main site.

Smart Credit Choices has added two new credit card calculators.  The first, a balance transfer calculator, enables consumers to estimate how much money they can save with 0% APR balance transfers.  On the average, we’ve found most consumers will save over $110 for every $1000 they transfer from a high rate credit card to a 0% credit card.  To find out how much you can save, try the balance transfer calculator.

The second calculator is designed to help consumers determine how much they can save with a gas credit card.  The gas savings calculator uses a 5% cashback rate, which is offered by leading gas credit cards, to provide an estimate of what you can save at the pump.  For more information, try our gas credit card calculator.

Many people who travelled abroad during the last ten years have recieved notice of a class action settlement in which credit card companies are required to refund international finance charges.  The class action suit stemmed from the fact that many credit card issuers did not properly or clearly disclose the existence of international transaction fees.

While some will benefit from the refund, the ultimate effect of the lawsuit is clearer disclosure in regard to international finance charges.  And, unfortunately, the credit card companies have made clear the fact that there is a 3% international transaction fee for all purchases abroad.  This is now the industry standard, with major issuers ranging from Chase to American Express all charging consumers a 3% international transaction fee.

Essentially, when using your credit card abroad, these fees are inescapable.  However, there are a few steps one can take to reduce these fees.  Perhaps the easiest is to book hotel and travel accomodations on U.S. based websites.  Another is to use a debit card whenever possible, as most debit cards do not charge 3% transaction fees.

SmartCreditChoices.com has reviewed over 75 credit card applications in search of a credit card with no international transaction fees.  Unfortunately, we have yet to discover one.  As soon as we discover a no transaction fee offer, we will post that information here.

Since the Fed lowered rates on March 22nd, a number of credit card companies have passed the savings onto consumers.  Among the credit card issuers lowering interest rates are Citi and Chase, both of which have reduced their lowest available rates by 3/4%.  Additionally, many cards issued by these companies are still offering 0% interest rates for 1 year on purchases, balance transfers or both.

At the time of writing, other issuers, including Discover and Capital One, have not reduced rates, as these companies do not tie their offers to the ever fluctuating prime rate.  However, Discover, in particular, continues to offer low long term interest rates of 10.99%.

Overall, the recent reductions of the Federal Reserve’s benchmark interest rate has been good for consumers, as average interest rates on many offers has dropped from about 14% to 11%.  Additionally, there are a number of companies offering credit cards with interest rates as low as 8%.

Unfortunately, very few companies are offering fixed rate credit cards.  Instead, they are offering variable rate credit cards with rates that increase (or decrease) every time rates change.  Of course, the best way to avoid rate increases is to lock in a 0% APR with a credit card that offers a 0% APR on purchases and balance transfers for a year.