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.



Anonymous 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.

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