Citibank UPROMISE > Free College Money
Written: Aug 01 '03 (Updated Sep 01 '04)
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Pros: Cashback on everything. Great customer service.
Cons: Possibly slightly higher APR.
The Bottom Line: You have to seriously consider this card if you have (grand)children. $300 a year is not be sneezed at.
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| jcare's Full Review: Citi Upromise Credit Card (Citigroup) |
Summer 2004 Update
There are now even more reasons to use the card. In response to some competitive pressures, Citi/Upromise are now running various specials. In the last few months they have offered an extra 2% back on gasoline, and an extra 10% back on groceries that qualify for a Upromise rebate. Currently there is an extra 2% at Staples. None of these bonuses count towards the $300 maximum for all you big spenders out there.
Quick Executive Summary
This card gives you 1% of your spending back in the form of cash contributed to a 529c college savings account. There is an annual limit of $300 cashback, and otherwise it’s a normal credit card.
The Details
UPROMISE (www.upromise.com) is a program that started up about two years. Its all about rewarding you for shopping at, and spending with certain merchants. Unlike many other fly-by-night schemes it has some serious names behind it, and some heavy duty partnerships with major corporations like GM, Exxon, Mobil and Citibank. It’s a disguised affinity program with the idea is that you always buy your gas at a Mobil station, buy school/office supplies at Staples, bed/bath stuff at Bed, Bath and Beyond etc. It even extends to the grocery stores, so you can get cashback on Tylenol, Cheez-its, Cascade and many other products. Your account can then be linked to a 529c account at a financial services company (such as Vanguard).
The next logical extension is to offer a credit card that adds to your UPROMISE account every time you charge something. And that is exactly what this credit card does. I used to have a different Citibank affinity card (cash-back for auto purchases), but with three kids, and the cost of college seemingly growing exponentially I decided that every little bit helps. One call to Citibank switched my DriverRewards card to a Upromise card.
The cash-back bit is actually very simple. For every dollar charged on the card, you get a penny back (1% for the math impaired). On every monthly statement it shows “Dollars Accumulated This Period” and they show up in my Upromise account within 7-10 days. Contributions are capped at $300 annually which translates into a yearly spend of $30,000 which should be more than enough for most people.
The card has pretty standard terms; APR for purchases is 11.24% and for cash advances its 19.99%. As with most card companies these are negotiable and can be lowered under duress. I have always found Citi Customer Service to be exceptional and they have always handled every complaint and request fairly and promptly. There is no annual fee, although cash advances are charged a 3% transaction fee – and they don’t qualify for cashback either.
With college costs running anywhere between $9,000 and $40,000 a year you might wonder why bother doing all this for $300 a year. However, my view is that every bit helps. The Upromise program certainly helps me focus my spending, and I know that if we go spend $100 at the supermarket, I get $1 from the CitiCard, and then anywhere from $2.50 to $4 back from the grocery rebates linked to my grocery rewards card through Upromise. It all adds up.
If you have children, or grandchildren, you have to seriously look at this credit card. If you are already in the UPROMISE general program – it should be a no-brainer.
Final Bonus Thought
What if I spend more than $30,000 a year on my credit card ?
Then (a) I want your job and (b) look at getting the Capital One College Savers Card. It has the 1% cashback feature, with a $100/month limit, tied directly into the Virginia State 529c plan (VEST). You don’t have to live in Virginia to use it.
Recommended:
Yes
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Epinions.com ID:
jcare
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Location: Southeast Pennsylvania
Reviews written: 270
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About Me:
Bullets can hurt people. Both in guns and PowerPoint.
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