Friday, September 1, 2006

Citibank Dividend MasterCard

I was going to write an entry about how much I like the 5% cash back feature for purchases at supermarkets, drug stores, and gas stations that I get with my Citi Dividend MasterCard. However, Citibank changed the rules. They recently sent me a letter stating that as of October 13, 2006, I will only be getting 2% cash back on my "everyday" purchases. I also noted that they added convenience stores and utilities to the purchases eligible for 2% cash back.

The way that this credit card works, one accumulates Dividend Dollars for the above mentioned "everyday" purchases. For all other purchases, a 1% cash reward is earned. Whenever $50 or more is accumulated, I can request a check from Citibank. They will pay out the entire balance, not just the minimum amount of $50. Believe me, this is a lot less hassle than a lot of the other rewards cards. In many other cases, I've found myself browsing through reward catalogs to find something that I had enough points for, and that I really wanted to get. Also, the Citi Dividend credit card is not a tiered award where you have to spend a certain amount (usually a few thousand dollars) before you qualify to get the maximum rate.

With the reward changing from 5% to 2%, this of course dampens my enthusiasm for using the card. On the other hand, I don't really have any better alternative card to use at the time. The 2% rebate is a lot better than most of my other credit cards which pay nothing. I would be interested, though, to see if another better offer will come along.

pfstock

2 comments:

CreditUser said...

It is quite an old post, and nowadays there is another situation worldwide. As far as I know CitiBank doesn't offer cash back credit cards (may be I'm wrong), but other banks offer cash back from 1% till 6%. For example, Discover issues 5% cash back credit cards. I use it usually. Generally, I am satisfied.

pfstock said...

For somebody called CreditUser, you aren't very savvy about credit cards. Indeed you are 100% wrong; Citibank offers several different types of cash back credit cards. I also have a Discover Card, and the 5% cash back is only on certain types of merchandise or retailers. The offers change every three months.