Do you know the difference between a credit card and a charge card? Simply put, a credit card has a defined credit limit that allows you to carry a balance from month to month. In contrast, a charge card has no pre-set spending limit, but must be paid in full every month. Up until today, I had never heard of a card that acts as both a credit card and a charge cad but the CitiBusiness® World Card is breaking the rules a bit. And they’re dishing out a 10,000 ThankYou point bonus.
So let’s start with the pricing details on the CitiBusiness World Card because they can be a touch confusing. Ultimately, this small business card acts as a credit card. An intro 0% APR for six months is provided and after that, the variable APR is 13.24%. All new cardholders will be given a credit line, and any purchases made will be charged interest if they are not paid in full on the first statement.
However, the CitiBusiness® World Card has a unique feature built in that allows you to spend more than your credit limit. If you decide to charge a purchase which will exceed your credit limit, Citi will immediately determine whether or not to allow the charge to go through; it will not be auto-declined. Whether or not your purchase is approved depends on your relationship and payment history with Citi. And I know what you’re thinking–”They’ll just approve everything and charge me over-limit fees.”
That’s not the case here. Instead, Citi will allow you one statement to pay your over limit amount in full, and no fees or interest will be charged (just like a charge card). If you fail to pay the over limit amount, you will be charged a fee, so never charge more than you can pay immediately (if you’re over your limit). This added feature is certainly unique and can help any business out of an immediate bind.
CitiBusiness $100 Promotion
An extra perk when applying for the CitiBusiness World Card is that new cardholders that spend $300 in the first three months will earn 10,000 ThankYou points. That’s good enough for a $100 gift card of your choice or other things like cash or discounts on travel. Additional ThankYou® points are earned on every purchase:
- 3 ThankYou points for every dollar spent on purchases at certain office supply merchants and on professional services
- 1 ThankYou point for every dollar spent on all other purchases
If you are a small business owner in need of a credit card or charge card, you may want to consider the only hybrid in the market today; the CitiBusiness® World Card. Throw in a $100 gift card and a very low APR and this card is a reasonable choice.
For more information or to complete an application online, visit the CitiBusiness® World Card while the bonus offer is still around.
You can also check out our complete list of business credit cards.
Published or updated December 21, 2011.