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Secret Motives Behind Citibank's Credit Card Conversions

Wednesday, September 8, 2010 - 5:46 AM
Citibank has been converting many of its cardholders to new credit card programs. One example was the conversion of Citi Dividend MasterCard cardholders. This Consumers Reports Money Blog post reviewed the motives behind Citibank's plans. As you might suspect, it will more likely help Citi rather than the cardholders.

Some examples of how the new program may hurt cardholders:
  • Cardholders will have to sign up for each quarterly rotating 5% cash back offer. Many will forget.
  • Citibank will send a check for no more than $50. Any remaining balance when you close your account will be lost.
8
Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,611
1. Wednesday, September 8, 2010 - 7:20 PM
Are we really surprised? Really?

Of course, banks ALWAYS look at their bottom line.

 

What irks me though is the conversion to so-called no credit limit. It's bad for the card holder, but what's the benefit for the bank to do so???
3
darkdreamer4udarkdreamer4u177 posts since
Jun 11, 2010
Rep Points: 636
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