CitiBank to customers - we gave you a card, USE IT OR ELSE

Greebo

Greebo

N9017H - C172M (1976)
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Retired Evil Overlord
A warning to any CitiBank credit card holders...

http://news.yahoo.com/s/ap/20091120/ap_on_bi_ge/us_citi_spending_required

NEW YORK – For Citibank credit card holders, there is one way to escape the bank's rate hikes currently under way: Meet a monthly spending requirement.

Those who meet the spending minimum — in some cases $750 a month — will be able to get a rebate on their total interest charges for that month. The rebate could cover some or all of the interest rate hike. Customers also need to make payments on time to qualify for the rebate.

Without giving specifics, Citi said the monthly spending requirements and interest rate hikes will vary depending on the cardholder's credit history.
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It's great to live on cash and not have to worry about taking it in the posterior at the lenders whim.
 
It's great to use the card and pay it in full each month and not care what the interest rate it. Cash is great, too, but have you every tried to pay at the pump with cash? :D
 
Ghery said:
It's great to use the card and pay it in full each month and not care what the interest rate it. Cash is great, too, but have you every tried to pay at the pump with cash? :D
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Believe me, I can use the exercise walking from/to the car to pay. :D
 
Has this tread turned into "Look how rich I am?"

If so - I hate you all, and please send some cash my way.
 
funny-cartoon-credit-card.jpg
 
SkyHog said:
Has this tread turned into "Look how rich I am?"

If so - I hate you all, and please send some cash my way.
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Nick - if this was directed at me, I can assure you I'm not rich by any standard. Just don't have debt or use credit cards. Big difference.
 
Ghery said:
It's great to use the card and pay it in full each month and not care what the interest rate it. Cash is great, too, but have you every tried to pay at the pump with cash? :D
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And credit card users like you are in the banks' crosshairs. Get ready to get dropped or pay an annual fee. They ain't makin' money on 'ya, they don't want 'ya.



Trapper John
 
Trapper John said:
And credit card users like you are in the banks' crosshairs. Get ready to get dropped or pay an annual fee. They ain't makin' money on 'ya, they don't want 'ya.



Trapper John
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Then I will just go back to using cash... and they can't get the 1% they rape out of the retailer for accepting my card. :rolleyes:
 
kevin47881 said:
Nick - if this was directed at me, I can assure you I'm not rich by any standard. Just don't have debt or use credit cards. Big difference.
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It was, but it was a joke....

Unless you really want to send some cash my way. I'll always take free money.
 
Trapper John said:
And credit card users like you are in the banks' crosshairs. Get ready to get dropped or pay an annual fee. They ain't makin' money on 'ya, they don't want 'ya.



Trapper John
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Anytime you use a credit card the bank makes money. If you're foolish enough to carry a balance they make even more money.


 
Rotor&Wing said:
Anytime you use a credit card the bank makes money. If you're foolish enough to carry a balance they make even more money.
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Of course they do. But if you as a bank can push off customers that don't carry balances into check cards, you still get the interchange fee and lower your costs.


Trapper John
 
Trapper John said:
Of course they do. But if you as a bank can push off customers that don't carry balances into check cards, you still get the interchange fee and lower your costs.


Trapper John
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Banks make money on credit cards by charging the merchant a percentage fee for accepting the card. People who use credit cards for purchases but pay the balance each month still are money makers for the bank and they will not get rid of them.

People who hold credit cards and don't carry a balance nor use them are the most in danger of losing them.

B of A just raised my credit limits as well as CapitalOne for the cards I hold. And I do not carry balances.
 
Rotor&Wing said:
People who use credit cards for purchases but pay the balance each month still are money makers for the bank and they will not get rid of them.
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I don't care if the banks make money off of my credit card use. I do it for the convenience as I don't like to carry a lot of cash or make sure that I have enough with me.
 
I don't really use credit cards -- but I do use my debit card as a credit card for nearly everything. I generally only keep a few hundred dollars in my checking account at a time to protect it incase someone jacks the debit CC number.

I also have Paypal tied to that checking account -- and I don't trust them either -- so the bulk of my money remains in a separate checking account that has no checks, no debit card, and no ties to people like Paypal.
 
Missa said:
Then I will just go back to using cash... and they can't get the 1% they rape out of the retailer for accepting my card. :rolleyes:
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1%? Bwa-ha-ha-ha! What decade was THAT percentage the norm?

Try 3%. 3.5% for the scumbags at American Express. Credit cards suck. Sadly, it's now a rare day that we see any actual cash in our business.
 
Jay Honeck said:
1%? Bwa-ha-ha-ha! What decade was THAT percentage the norm?

Try 3%. 3.5% for the scumbags at American Express. Credit cards suck. Sadly, it's now a rare day that we see any actual cash in our business.
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Why would anyone pay cash if the purchase price is the same on a credit card/check card/debit card?

You set your rates and charge your customers. Presumably, you're astute enough to recognize the interchange fee as a cost of doing business and include that in your rate.


Trapper John
 
Greebo said:
They take debit cards. So do car rental companies.
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Isn't there a downside to reserving hotel and car rental with a debit card? Something about them withdrawing it from your account and then taking a number of days to reimburse you if you don't use the whole reservation? I don't use debit cards so I'm not sure, but it seems as if I've heard this and there was a notice posted at the front desk of the hotel I just stayed at to that effect.
 
Everskyward said:
Isn't there a downside to reserving hotel and car rental with a debit card? Something about them withdrawing it from your account and then taking a number of days to reimburse you if you don't use the whole reservation? I don't use debit cards so I'm not sure, but it seems as if I've heard this and there was a notice posted at the front desk of the hotel I just stayed at to that effect.
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They don't withdraw it, they put a "hold" on it which lowers your effective available balance.

And there's a really easy solution to that little issue:
DON'T SPENT ALL YOUR MONEY EVERY MONTH. Keep a buffer.
 
Everskyward said:
Isn't there a downside to reserving hotel and car rental with a debit card? Something about them withdrawing it from your account and then taking a number of days to reimburse you if you don't use the whole reservation? I don't use debit cards so I'm not sure, but it seems as if I've heard this and there was a notice posted at the front desk of the hotel I just stayed at to that effect.
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Everytime I've ever reserved a card on a debit card, they put an outlandish hold on my card of like $500 more than the rental price.

It then takes about 3 weeks after I turn in the car to get the money back. I use a real credit card for that now, just to avoid that fee (and it is a fee, I lose interest for the entire period that money is missing).

The last 3 times I've rented a car on my own dime, I've been denied the ability to use cash.
 
SkyHog said:
Everytime I've ever reserved a card on a debit card, they put an outlandish hold on my card of like $500 more than the rental price.

It then takes about 3 weeks after I turn in the car to get the money back. I use a real credit card for that now, just to avoid that fee (and it is a fee, I lose interest for the entire period that money is missing).

The last 3 times I've rented a car on my own dime, I've been denied the ability to use cash.
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Weird - who are you renting with?

We rented with Budget last year and the hold lasted about 3 days and wasn't nearly so ridiculous.
 
Greebo said:
And there's a really easy solution to that little issue:
DON'T SPENT ALL YOUR MONEY EVERY MONTH. Keep a buffer.
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There's a solution to using credit cards too, just pay them off every month. I just read one of the links that rpadula posted which lists good reasons for using credit cards instead of debit cards. I don't know why people are so philosophically opposed to credit cards anyway.

Here's a minibarrage of reasons. Using a credit card...

  • is more convenient, since you needn't keep track of an account balance unless you are very near your credit limit;
  • is cheaper because it doesn't require keeping a substantial buffer of funds in a zero or low interest checking account;
  • is cheaper because you can get some of the interchange fee refunded via rewards programs;
  • is safer, because it offers the opportunity to review and occasionally repudiate transactions prior to transferring funds;
  • is safer, because stronger consumer protections are offered in the event of theft or fraud;
  • is safer, because if the cardholder faces an unexpected liquidity crisis, she can shift from transactional to revolving credit. Cardholders have the option of making partial payments with little penalty.
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http://www.interfluidity.com/posts/1243293605.shtml
 
Rotor&Wing said:
Banks make money on credit cards by charging the merchant a percentage fee for accepting the card.
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They also make a huge amount of money on "the float" -- the spread between when the money comes in, and when they actually deposit it in our bank. With AMEX, that can be a full week now.

Did I mention that I hate AMEX? :mad2:
 
Jay Honeck said:
They also make a huge amount of money on "the float" -- the spread between when the money comes in, and when they actually deposit it in our bank. With AMEX, that can be a full week now.

Did I mention that I hate AMEX? :mad2:
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I'm not too fond of companies that don't take AMEX since my company credit card is an AMEX. If I go somewhere that doesn't take AMEX I have to put it on my own Visa or MC and wait to get reimbursed. If it's a hotel that doesn't take AMEX I would write down on the trip report not to go back.
 
1. is more convenient, since you needn't keep track of an account balance unless you are very near your credit limit;
- I don't find this to be true but I can see how it would be for some people

2. is cheaper because it doesn't require keeping a substantial buffer of funds in a zero or low interest checking account;
- That's a false cost. You have to have the money to pay off the card by the end of the month anyway - and having money "on hold" isn't really a cost.

3. is cheaper because you can get some of the interchange fee refunded via rewards programs;
- Sure if you still have a card that does those - those are falling like flies and fees for people who pay off monthly are starting to show up now

4. is safer, because it offers the opportunity to review and occasionally repudiate transactions prior to transferring funds;
- Granted but your Debit card if its w/ Visa or MC has the same coverage as a credit card for disputes.

5. is safer, because stronger consumer protections are offered in the event of theft or fraud;
- Not true - my Debit card transactions get screened the same way as my old card and if I dispute a charge, it's handled the same way.

6. is safer, because if the cardholder faces an unexpected liquidity crisis, she can shift from transactional to revolving credit. Cardholders have the option of making partial payments with little penalty.
- That's not safety that's delaying a problem, and then the liquidity crisis person is getting bills they can't pay and accumulating high interest charges on debts they "used to live on" as the ship was crashing.
 
Greebo said:
1. is more convenient, since you needn't keep track of an account balance unless you are very near your credit limit;
- I don't find this to be true but I can see how it would be for some people

2. is cheaper because it doesn't require keeping a substantial buffer of funds in a zero or low interest checking account;
- That's a false cost. You have to have the money to pay off the card by the end of the month anyway - and having money "on hold" isn't really a cost.

3. is cheaper because you can get some of the interchange fee refunded via rewards programs;
- Sure if you still have a card that does those - those are falling like flies and fees for people who pay off monthly are starting to show up now

4. is safer, because it offers the opportunity to review and occasionally repudiate transactions prior to transferring funds;
- Granted but your Debit card if its w/ Visa or MC has the same coverage as a credit card for disputes.

5. is safer, because stronger consumer protections are offered in the event of theft or fraud;
- Not true - my Debit card transactions get screened the same way as my old card and if I dispute a charge, it's handled the same way.

6. is safer, because if the cardholder faces an unexpected liquidity crisis, she can shift from transactional to revolving credit. Cardholders have the option of making partial payments with little penalty.
- That's not safety that's delaying a problem, and then the liquidity crisis person is getting bills they can't pay and accumulating high interest charges on debts they "used to live on" as the ship was crashing.
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My experience desputing charges on my Wells Fargo debit card (Visa) hasn't been that good. They've already got your money which seems to maker it harder to get them to give it back.

I've had by far better luck disputing on my real Visa credit card.

That said, I still primarily use my debit card, even if that means a $500 hold from some company on it for renting something. I don't really care - if $500 is going to break me - I need to better manage money.
 
jesse said:
That said, I still primarily use my debit card, even if that means a $500 hold from some company on it for renting something. I don't really care - if $500 is going to break me - I need to better manage money.
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By all means. However, I get 3.5% interest on that $500 if its still in my account. If its not in there, that is a real fee that I don't get back.
 
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