Citi has increased the annual percentage rates (APRs) on all of its college student credit card offers that have rewards programs. The effects of last year’s Credit CARD Act may have contributed to these changes.

New Citi College Student Credit Card APR Changes

Citi will be increasing the APR for the following rewards college student credit cards: Citi Forward® Card for College Students, Citi mtvU Platinum Select Visa Card for College Students, Citi Dividend Platinum Select MasterCard for College Students.

The old APR structure for all the cards stated above are as follows:

  • Post-introductory variable APR ranging from 12.99% – 20.99%
  • Tiered APR structure: 12.99%, 16.99%, 19.99%, and 20.99%

The new APR structure will be:

  • Post-introductory variable APR ranging from 13.99% – 22.99%
  • Tiered APR structure: 13.99%, 18.99%, 21.99%, and 22.99%

Citi’s remaining two college student credit cards, the Citi Platinum Select MasterCard® and Citi® Platinum Select® Visa® Card, will not have any APR changes.

Other changes to Citi’s credit cards include: Citi Forward Card’s post-introductory rate will be increased to as high as 21.99% and the ThankYou(sm) Premier Card will reward 1.2 ThankYou Points per $1 spent at supermarkets, gas stations, drugstores, commuter transportation and parking merchants.

Effects of the Credit CARD Act

Provisions of the Credit CARD Act of 2009 prohibited card companies from approving credit cards for anyone under the age of 21 without an adult co-signer or proof of reliable income. Since the new credit card laws went into effect February 22, 2010, college students became a lost market for credit card companies.

The young adults who do qualify for a college student credit card, and are likely to be in tougher financial situation, may pose an increased credit risk for card companies. It may be one of the reasons why credit card companies such as Citi are revamping their college student credit card products.

Student credit cards tend to carry higher APRs compared to the regular versions of those cards. Therefore, it may be wiser to apply for a regular credit card instead of the student version. To find and compare other credit cards available, visit the credit cards page.

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