Popular Citi Rewards Card Reduces Benefits
Citibank has diluted its popular rewards program on its Dividend
Platinum Select credit card. One of the most rewarding card
offers on the market is no longer the incredible value it used
to be.This rewards card was unique because it offered something that
consumers could really use--CASH! Points and other abstract
rewards were difficult to quantify. Even airline miles programs
are hard to benefit from. But this program was different.
This is how it worked. You received a 5% cash rebate on all
grocery, gas station and drug store purchases. You received only
1% on all other purchases. Consumers enjoyed saving $5 on every
$100 in groceries they purchased. Gasoline was effectively
discounted from $3 a gallon to $2.85 when taking the cash rebate
into account.
Although Citibank has steadily increased the APR on these
accounts to pay for its rewards program, it is apparent that
they decided the rewards were too generous. Many people,
including this author used the account almost exclusively for
these qualifying purchases and never carried a balance. Now
these 5% rebates have been reduced to 2%. Utility payments
(excluding telephone) now qualify for the 2% rebate. Citibank
announced that these changes are effective October 13, 2006.
If you still have this card, it is probably still worth it to
use for gas station, grocery and drug store purchases as long as
you pay the balance in full each month. Besides, most gasoline
fill ups will still earn close to a $1 rebate. While not as
attractive as the $2-2.50 rebate per fill up, it still can cut
fuel and grocery costs. Include your utility payments and you
may be able to recoup most of your previous rebate savings.
If you are still looking for a rewards card, then it is
recommended that you evaluate which rewards card offers the best
benefits for your situation. Choosing the best rewards card can
help you earn the most from your purchases.
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