Citi Dividend Platinum: Great Credit Card for Students: No Fee and Cash Back!
Written: Apr 09 '01 (Updated Apr 09 '01)
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Pros: No annual fee, cash back, great benefits, great web site, geared towards students.
Cons: Higher than average APR.
The Bottom Line: CitiBank has created an excellent full service credit card with a rewards program specifically designed for college students. It's a great way to start establishing credit with a top issuer.
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| netKat's Full Review: Dividend Card for Students (Citibank) |
If you, or a member of your family, are a college student looking for a good credit card, Citibank has the answer. Their Citi Dividend Platinum Select Card for College Students is a great choice. It has no annual fee, with a grace period, and a potential to earn cash bonuses of $300 per year. Here are the details, and information based one of my college student’s experiences, about this card.
-- First of All, Why a Student Card? --
It should be easier for a student to be approved for a student card simply because the approval parameters are different. Students are not expected to have a high, or even moderate, level of income. Students are not expected to demonstrate the stability in terms of their employment and residency that “regular” applicants need for approval.
Credit card companies want college students because it’s a proven fact that people tend to be loyal to the first company that gives them credit. What better way to build a life long financial relationship than with a college student? As the student graduates and progresses in his or her career, with expanded credit needs, a company like Citi wants to be there!
-- The Stats --
• APR
The APR on this card is variable, and is calculated by adding 9.99% to the current prime rate. As of March 2001, the rate is 18.49%. The rate can be adjusted on a monthly basis, based on the Prime rate as reported in the Wall Street Journal.
In our experience, the rate has hardly changed at all. Additionally, if the rate ever jumps to a level that is outside of your comfort zone, you have an option to not accept the new rate, close the account, and pay off your bill at the current rate. Of course, rates are very often negotiable, so if you’re a valued customer, Citibank is likely to try to make you happy and retain your account. Additionally, since there is a grace period on the account, you can pay your bill in full at the end of the month and not have to pay any finance charges.
Cash Advances are 19.99% and there is a transaction fee of 3% of the total amount with a minimum fee of $5 per advance. This fee applies to money orders, wire transfers, traveler’s checks, lottery tickets, casino chips, and tax payments. A good rule of thumb, and what I stress with my kids, is never out cash or anything resembling cash using a credit card. The APR is usually higher and there are fees involved. Also, taking a cash advance can blow your grace period causing you to pay accrued finance charges on your purchases. No two ways about it, cash, or “cash equivalents” are a bad deal.
• Promo Rate
There is a 9.99% promo rate for the first six months on balance transfers, purchases, and cash advances.
• Grace Period
I have always taught my kids to pay their balance in full every month. This card has a grace period of 20-25 days allowing the cardholder to pay the bill in full and not be charged a penny in finance charges.
• Late Fee
Pay late and you’ll have a $29 late fee, but worse than the fee you may be considered in default of your Citi Card Agreement which will result in Penalty Pricing. This is not something unique to CitiBank; most credit cards now have in place risk or penalty pricing. What this means to consumers is that if you pay your bill late, your rate will go up. On this card, the rate can go up an additional 5%, to 23.49% as of March 2001.
-- OK, Now how do I earn the Dividends? --
The dividend program is amazingly straightforward.
• Dividends are payable at the rate of 1% of the net purchases.
• You do NOT have to carry a balance to earn dividends.
• You can earn up to $300 each calendar year (Jan to Dec no matter when you opened your account).
• Each time your dividends add up to $100, you will be sent a check.
• The dividends do not expire and can carry over into the next year.
• Dividends are not earned on balance transfers, cash advances, convenience checks, finance charges, fees, or returned purchases.
• Accumulated dividends will be forfeited if the account is closed.
That’s it! Well, except keep in mind that you're going to have to charge through $10,000 on your card to get the first $100 check. Since the dividends never expire, and college books and expenses can cost a fortune, this shouldn't be an insurmountable problem.
-- Are there any other Benefits on this Card? --
Yes! There is a great array of benefits, especially considering this is a student card.
• Purchase Protection
If an item is stolen or broken within the first 90 days, it can be reimbursed up to $1,000. Also, US manufacturers' warranties can be extended for up to an additional year at no cost. Pre-registration of the items are not needed. Just be sure to save your original credit card and store receipt.
• Travel Accident Insurance up to $1,000,000
As long as the full price of your common carrier ticket is charged on this credit card, you will be covered for up to $1,000,000 travel accident insurance at no additional cost. Pre-registration is not required.
• Supplemental Rental Auto Insurance
Renting a car? No need to take that additional rental insurance that can cost up to $15 per day… it’s all built into this credit card program. Your rental car (luxury cars not included) will be covered for up to an additional $50,000 in supplemental coverage. The full and complete cost of the rental car must be charged to this card in order to obtain the coverage. Also, it really pays to check in advance with the credit card issuer prior to renting a vehicle to be sure your choice qualifies for this coverage and to get last minute instructions and limitations.
• Annual Account Summary
This is a handy feature that helps keep track of your spending. Charges are broken down into various categories for the year. This is a great help in auditing expenses that you think Mom and Dad should be reimbursing. :)
• Photocard
Citibank allows the cardholder to have his or her picture in the upper left-hand corner on the front of the credit card at no additional cost. This comes in handy for students as another picture ID.
• 24 Hour Customer Service
In our experience, Citibank has excellent customer service. On both my regular Platinum MasterCard account, and this student card, we have been treated to knowledgeable, courteous, and friendly service. We’ve never been kept on hold for long periods of time and there seem to be representatives available to take our calls no matter what the time of day or night.
• Online Account Access and Bill Payment
Citibank maintains a great website where you can access lot of information about your account. It’s fast moving, intuitive, and very comprehensive. You can view statements, current activity, and even pay your bill with a click.
Especially helpful for busy college students is the AutoPay option. AutoPay can be set to pay a set amount, or the bill in full, every single month automatically. This is a great way to avoid late payments.
-- Conclusion --
Unlike other student rebate programs that require the student to carry a balance in order to obtain a reward, or charge an annual fee, or have stripped down benefits and services, CitiBank has created an excellent full service rewards program specifically designed for college students. The well designed web site access will assist the highly mobile student in keeping control of his or her account. Along with the cash rewards and access to great benefits, establishing a relationship with one of the top three credit card issuers in the world isn’t chopped liver either. My college student and I highly recommend this card. :)
You may be interested in these other related reviews
• An Insiders Comprehensive Guide to Avoiding Credit Card Fees
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• Horror of Another Kind: Credit Card Fiascoes: How other people's mistakes can save YOU money!
http://creditexpert.epinions.com/finc-review-5BF7-C7714F5-38E88159-prod2
• YES, You CAN Repair your Credit: an Industry Insider Shows You How
http://creditexpert.epinions.com/finc-review-23B7-83662BE-38F10F1B-prod6
Recommended:
Yes
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netKat
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Member: Kat
Location: Maryland
Reviews written: 166
Trusted by: 885 members
About Me:
Analytically inclined mom, bank officer, freelance writer, and internet addict.
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