My Favorite Credit Card: 5% Cash Back on Groceries, Even More on Clothing and Gifts
Written: Jul 16 '06 (Updated Apr 19 '07)
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Pros: no fee, 1% cash back, up to 11% on CitiMerchants, good customer service, fraud protection
Cons: $300 annual limit on cash rebate (unlimited on the CitiMerchants site), phone/mail solicitation
The Bottom Line: A great card with super perks: 5% cash back on groceries, gas, and drugstore items and 1% everywhere else. I earn even more if I remember to shop through CitiMerchants.
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| jeavinl's Full Review: Citi Dividend Platinum Select |
A few years ago, I decided to trim down my wallet. I cancelled a whole bunch of store cards. I hardly ever used them and didn't think carrying a bunch of cards did anything good for my credit score. So up until last year, all I had were my AOL VISA card and a Discover one from back in my college days that never got used but was kept for emergencies. I didn't think I needed anything else. All of the card applications I received in the mail immediately got chucked into the recycling bag. So what made me decide to get a CitiDividend Card?
WHY DID I NEED ANOTHER CARD?
Well, there were two interrelated reasons. Since I was steering away from using AOL as my e-mail account, I no longer needed the points that I accumulated through using my AOL VISA card. Relatedly, the points could only be applied toward the cost of my account, which always bothered me, so I wanted a card that would give me cash back. I didn't want to lock myself into a point system again. I didn't want a card that would lock me into earning toward a certain store (Target) or travel (airline) or commodity (gas card) since it never seems like I stick with any one company for long. But cash I can always use. So with that in mind, I kept my eyes open for the barrage of unsolicited applications. The one card I knew of that earned cash back was the American Express Blue Card, but since American Express is not accepted everywhere, at least not within the United States, I really wanted to stick with a Master or VISA card.
So when I received the application for the Citibank CitiDividend Master card, my interest was piqued. My husband had a Citibank account when I met him and he was happy with that experience so I trusted the Citibank name. Master card is widely accepted so that was a plus. And, of course, the lure of earning cash on all my purchases gave me reason to investigate further. I, like most folks, can always use a little spare cash and if I can get it for simply going about my everyday business, all the better. I read through the literature and then I went online and looked at the site. I liked what I saw and read, so I applied online using the invitation code I received in the mail. That was about a year ago and I'm happy with my decision.
THE BASICS
The CitiDividend Master card is a credit card that offers a cash back incentive. The check can be sent throughout the year, even several times a year, once your rebate amount hits $75. There are cash back incentives on all purchases. All purchases qualify for 1% back. Purchases made at grocery stores, gas stations, and drug stores qualify for 5% back. You can also earn cash back on balance transfers and cash advances but I'm not sure how that works. There is a $300 annual limit to the cash back incentive, except for purchases made through the special CitiMerchants site. That site offers special cash back incentives for shopping at participating stores. Those percentages range from 1% up to 11%. There are a ton of participating stores such as Home Depot, Target, Gap, 1-800-Flowers, etc.
There is no annual fee. I always pay my bills in full so until today when I checked before writing this review, I wasn't even sure what the annual rate is. My annual rate on purchases is 13.24% and the rate on cash advances (something I'd never use) is 22.99%. I receive mailings from the company offering balance transfers every once in a while. The latest rate was 4.99%. I also get the requisite calls from customer service about buying protection plans. It seemed like they were calling once a week in the beginning, though it was probably less often than that. But now it's died down and I haven't heard from them in a couple months.
CUSTOMER SERVICE
Other than the program solicitations I've gotten from customer service, I've only had to deal with them twice. The first time I called was when I noticed a late charge on my monthly bill. I'm not sure if I never got the previous month's bill or just misplaced it, but I had no recollection of it so I immediately called customer service. I was able to speak with a live person fairly quickly and she resolved the problem right away. She mailed me a new copy of the bill and the late fee was dismissed.
The second time I called was after I had made an online purchase for which I hadn't received an e-mail confirmation. Since it was a gift, I wanted to make sure the transaction went through so that it would reach its destination on time. I called the day after I made the purchase, and the woman was very polite and let me know that the transaction was indeed posted to my account.
ONLINE SERVICES
The CitiCards site is easy to use and has plenty of information about the various cards they offer, including this one. I can view my statement, pay my bill (though I usually pay through my PNC Bank account), and access my reward cash (aka request a check). It was super easy to go online and request my check. I've only done it once, around last Christmas, when my rebate was about $200. It arrived in the mail fairly quickly, in about a week or two.
On the online statement page, there are icons for easily downloading current information into money management software. The two that are currently compliable are Quicken and Money.
I bank with PNC Bank and use their online site to pay bills. This card allows me to set up e-bills where I get e-mailed notifications and the billing amount goes directly on the side ledger of my PNC listing of creditors/utilities.
CITIMERCHANTS
Although the CitiMerchants site is affiliated with the CitiCards site on which the account information is stored, it is an entity in and of itself and is hard to find from the CitiCards site (there are occasional links for specials). In theory, this related site is great. You can shop at a ton of stores, broken down by categories, and earn additional cash back incentives in unlimited amounts. But in practice, I usually forget to use it. Also, the cash back earned through purchases made via this portal don't post immediately, so it can be a bit discouraging.
Although shopping on the CitiMerchants site is a perk for cardholders, you do need to activate your membership on the site separately. It's not a big deal, but could discourage some users. Even if you access this site from a link on the CitiCards site, you will need to re-log in.
The site acts as a portal for accessing a slew of online shops. When you shop via this site, you earn special cash back incentives. The percentages are all listed next to the store names so you can compare the "discounts" easily. There are travel sites and cruise lines that offer 4% cash back, computer and office supply stores that earn 2-3%, clothing stores that earn 6-7%, and even cell phone companies that earn a lump sum cash incentive ($30). The key is that you have to remember to go online and check the site. There are new linked stores all the time and sometimes the percentages change as well.
The one thing I don't like about this site is that there's no way to know whether your account has been credited appropriately. Once you click on an off-site store link, you're there and there's no top bar to notify you that you were referred from the CitiMerchants site. Plus, like I said before, the cash back doesn't get credited right away, so you have to remember to check back a few days later.
OTHER PERKS
Balance Transfers
Probably about once a month or once every other month, I get a mailing about a current balance transfer offer. I think the latest was for 4.99%. Since this is the only card I use on a regular basis, that has no appeal for me. I noticed on the Web site that they do offer a 0% APR on balance transfers for 12 months with no balance transfer fees. I think that may be for new customers only.
Cardmember Protection
There are a slew of programs Citibank offers to protect its cardmembers. I haven't had to use them but I think I've heard about most of them in one form or another over the past year from the customer service calls. I know there's a photo card option and they have an early fraud warning program in which they monitor your account for unusual purchases and contact you when they notice spikes. They also have a lost wallet feature that allows you to get a new card at no charge and emergency cash and information. In addition, they provide a $0 liability feature that relieves you of responsibility on unauthorized purchases. I think this is a fairly common credit card feature but it's still nice to have. Those are all free and included with the card.
There's also a program that they keep trying to sign me up for that allows you to hold off on payments when you're out of work, sick, or having some sort of financial crisis. I'm not sure how much it is per month for this program since I usually stop listening to the phone call at that point, but I know they insist that you don't pay unless you have a balance. I think it's about a $1 per $100 or every such-and-such amount on your ending monthly balance. But since I use this card almost exclusively for most of my purchases (I hate to carry cash), there's always a large monthly balance, though never any carry over balance.
OVERALL
So far, I'm happy with this card. I get relatively hassle-free, except for the occasional dinnertime phone calls, cash back on all of my purchases (up to $300 annually), there is no annual fee, and when I remember to shop through the CitiMerchants site, I can save even more. Since it's a Master card, it's widely accepted and I've never had a problem dealing with customer service.
**************UPDATE 8/31/06****************
I received a letter from Citibank Cards saying that they are changing their cash back policy. Their once 5% cash back incentive will be rolled back to 2% but members can earn that amount at supermarkets, gas stations, drug stores, and now convenience stores and utilities such as cable companies. The additional earnings that were possible on the CitiMerchants site are still in effect. I don't like this change, but I will wait and see how it plays out before I change my four-star rating.
www.citicards.com
Citi Cards
P.O. Box 183037
Columbus, OH 43218-3037
Technical Assistance (for help using the website) 1-800-347-4934
Lost/Stolen Cards and ID Theft Assistance 1-800-950-5114
TDD/TTY for the hearing impaired - available in English only 1-800-325-2865
Internet Security Specialists 1-888-285-9696
************UPDATE 4/19/07*******************
I was recently contacted by this Citi card about two fraudulent charges. The first occurred two days before the phone call, the second a mere 15 minutes before it. I had no idea, and still don't, how this happened or who the companies are, but I was so HAPPY and GRATEFUL that I was contacted so promptly. The process to rectify the problem was painless. The customer rep. read off a series of past charges to me over the phone and I told him there were only two that weren't mine. He immediately deleted them, closed the account, and started the process to send me replacement cards (with a new account number). I got the new cards in a matter of a few days and received a confirmation letter and an affidavit of fraudulent charges in about 10 days (to be completed in the presence of a notary public only if there are other charges I'm not responsible for on my next statement). Although I had started to use another credit card for a while after the cash back premium dropped about 6 months ago, this card has continued to be my online shopping card because of its fraud protection. You can bet I will continue that practice.
Recommended:
Yes
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