Replacement for Citi Dividends card?

[beatle]

Just read over on Slickdeals that Citi would be changing the percentages for their Citi Dividends card. Gas/groceries (GG) will be reduced to 2%, but the 2% will extend to convenience stores and utility bills. I'm considering jumping ship to another card because of this, but I'm not sure how it will affect my credit score. I have good credit (3 major credit cards, none with a balance) that I want to preserve. I've read that closing an account in good standing isn't always a good idea, especially if it helps your credit/debt ratio. I've also read that having too many cards, especially young ones, is detrimental to your score. I opened my Citi account in Feb of 2005. My other cards were opened in early 2002 and late 1997.

The AMEX Blue Cash seems promising, since I could use one card for everything and I could get into the $6500+ bracket within a few months since I travel for work and I put all my expenses on my own card. Anyone have any "expert" financial advice?

 

[Glavinsolo]

Centurion black card?

 

[Dacalo]

I have been a customer of Dividend card since 2000 and Amex Blue since 2001. I used to use Dividend exclusively due to cash back, but now that their terms are altered, I will be using Amex. I love Amex service and their webpage. $6,500 is easily surpassed, so no concern.

 

[Dacalo]

Originally posted by: Glavinsolo
Centurion black card?

You can't apply for it, invitation only.

 

[beatle]

I took the Centurion card reply as a joke anyway.

Do you have any comments on the addition and possible subtraction of my Citi account?

 

[Dunbar]

I'm gonna see how the other cards play out. I still have a ways to go to hit $50 so I can cash out of my Dividend card. Rumor has it that Chase will be doing the same (but no official word yet) and you have to wonder if HSBC will follow suit. If that happens it will be a tough choice since no card compares to straight 5% cash back.

 

[everman]

There's a Citi Dividend AMEX with 5%, but I wonder if that will be cut too?

 

[Reckoner]

Thread

 

[bolido2000]

Chase has a card that gives you 5% in gas/super/drug purchases (forgot the name)
The Citi professional cash card is good too. Fatwallet.com finance forum section has good discussion on CC

 

[acemcmac]

I'm in the same boat and not quite sure what my strategy will be either... I just applied for the Amex Blue Cash (was instantly approved) and the Wawa credit card. I'll sit down tonight and try to figure out what the best approach is....

Everman- it will almost definitley be cut. Discover is killing their 5% gas card, Chase is killing their Citi copycat card... it's crunch time

 

[beatle]

I'm leaning towards the Blue Cash or possibly the Costco TrueEarnings AMEX. The Costco card is a flat rate no matter what you spend. It gives 3% on restaurants (good for travel, though I try not to eat out when I'm at home,) 2% on travel which is a big thing for me since I've spent over $20k this year on plane tickets, rental cars, and hotels. They offer 1% on everything else. No bonus for gas, which is a downer, but I only put about 10k on my car each year, and I get about 25-27 mpg on average.

Is there any benefit to going with one AMEX over the other aside from the obvious percentages? Can anyone comment on the impact of a closed Citi account and the opening of a new credit card? It seems stupid, but I'll play by the rules to keep my credit score which can be worth more in the long run over a hundred bucks or so in a year.

 

[acemcmac]

Originally posted by: beatle
I'm leaning towards the Blue Cash or possibly the Costco TrueEarnings AMEX. The Costco card is a flat rate no matter what you spend. It gives 3% on restaurants (good for travel, though I try not to eat out when I'm at home,) 2% on travel which is a big thing for me since I've spent over $20k this year on plane tickets, rental cars, and hotels. They offer 1% on everything else. No bonus for gas, which is a downer, but I only put about 10k on my car each year, and I get about 25-27 mpg on average.

Is there any benefit to going with one AMEX over the other aside from the obvious percentages? Can anyone comment on the impact of a closed Citi account and the opening of a new credit card? It seems stupid, but I'll play by the rules to keep my credit score which can be worth more in the long run over a hundred bucks or so in a year.

I leave all of my credit lines open with the cards in a sock drawer until I'm told otherwise. You want to minimize that percentage of utilized credit. Leave the citicard open IMHO. It also gives you an inroad if Citi comes out with a product later that you decide you want to transfer to.

 

[beatle]

Originally posted by: acemcmac
I leave all of my credit lines open with the cards in a sock drawer until I'm told otherwise. You want to minimize that percentage of utilized credit. Leave the citicard open IMHO. It also gives you an inroad if Citi comes out with a product later that you decide you want to transfer to.

I think I'll go that route. While having a high credit/debt ratio is good, too many cards can also hurt your score. I just didn't want to stray far from that "magic number" of cards to have open.

 

[RossMAN]

I'll probably use my Chase Perfect Card more for gas (3%) and Amex Costco for restaurants (3%).

 

[Dunbar]

Originally posted by: acemcmac
I leave all of my credit lines open with the cards in a sock drawer until I'm told otherwise. You want to minimize that percentage of utilized credit. Leave the citicard open IMHO. It also gives you an inroad if Citi comes out with a product later that you decide you want to transfer to.

If you stop using the card credit bureau's stop counting it towards your available credit line total. Citi will let you fold the credit line into another card. Or just cancel it and replace it with another card. If you're buying house or financing a car in the next year I'd leave it open and continue to use it. Otherwise I wouldn't worry about canceling it.

 

[Reckoner]

Originally posted by: Dunbar

Originally posted by: acemcmac
I leave all of my credit lines open with the cards in a sock drawer until I'm told otherwise. You want to minimize that percentage of utilized credit. Leave the citicard open IMHO. It also gives you an inroad if Citi comes out with a product later that you decide you want to transfer to.

If you stop using the card credit bureau's stop counting it towards your available credit line total. Citi will let you fold the credit line into another card. Or just cancel it and replace it with another card. If you're buying house or financing a car in the next year I'd leave it open and continue to use it. Otherwise I wouldn't worry about canceling it.

No it doesn't. I haven't used my bank CC in over a year and it's still factored into my utilization.

 

[EKKC]

Citi Divendend AMEX is not affected by this, yet.

 

[Dunbar]

Originally posted by: PaulNEPats
No it doesn't. I haven't used my bank CC in over a year and it's still factored into my utilization.

http://articles.moneycentral.msn.com/Ba...ting/7FastFixesForYourCreditScore.aspx

4) Dust off an old card. The older your credit history, the better. But if you stop using your oldest cards, the issuers may stop updating those accounts at the credit bureaus. The accounts will still appear, but they won't be given as much weight in the credit-scoring formula as your active accounts, said Craig Watts, an executive at Fair Isaac & Co., one of the leading credit scorers. That's why Ferguson often recommends to her clients that they use their oldest cards every few months to charge a small amount, paying it off in full when the statement arrives.

 

[Reckoner]

Originally posted by: Dunbar

Originally posted by: PaulNEPats
No it doesn't. I haven't used my bank CC in over a year and it's still factored into my utilization.

http://articles.moneycentral.msn.com/Ba...ting/7FastFixesForYourCreditScore.aspx

4) Dust off an old card. The older your credit history, the better. But if you stop using your oldest cards, the issuers may stop updating those accounts at the credit bureaus. The accounts will still appear, but they won't be given as much weight in the credit-scoring formula as your active accounts, said Craig Watts, an executive at Fair Isaac & Co., one of the leading credit scorers. That's why Ferguson often recommends to her clients that they use their oldest cards every few months to charge a small amount, paying it off in full when the statement arrives.

I haven't had that problem yet. The card I was talking about still gets reported.

 

[kranky]

I haven't received a letter from Citi (yet) but if I do I will probably sign up for the Amex Blue Cash card. I just got a solicitation for it yesterday.

I will really miss that cash back.

 

[sniperruff]

i hope my replacement doesn't crap out like the citi dividend too. i still have to figure out how to cash in the freaking points!

i didn't find it anywhere but on my statement it says:

"Use your Chase Cash Plus Rewards Card for all of your spending and earn 5%
cash back on Gas, Grocery and Drug Store purchases and 1% cash back on
everything else."

 

[DaWhim]

Citi Diamond Preferred is my replacement, it is basically same as dividends except you get thankyou points instead of cash back. is citi cutting the 5% on this card too? I hope not.

 

[mwtgg]

I'm just gonna suck it up and keep the card (which I JUST applied for) as 2% is still better than the crappy points I get with my VISA Check card.

 

[iversonyin]

BP fuel card give you 5% on gas....if you have BP stations around you.- I think thats going to be my gas card. I might get AMEX blue cash for everything else

 

[Rumpltzer]

Originally posted by: DaWhim
Citi Diamond Preferred is my replacement, it is basically same as dividends except you get thankyou points instead of cash back. is citi cutting the 5% on this card too? I hope not.

My understanding is that you get 5 TY points at supermarkets, gas stations, and drugstores only for one year. I assume it drops to one point per dollar spent after that?

Link


I switched over to the Diamond Preferred card two weeks ago and wasn't sure whether I'd really care about any of the merchants who are participating (I'd rather have cash). It turns out that they have student loan voucher cards or something like that. That's as good as cash to me if they're really useable.