volvoswede said:The question I haven't seen answered about this "offer" is "Why" Citi is doing this?

Citi gets a higher interchange fee (the percentage fee assessed on each transaction) for World products:
pdf link

It's not a huge difference. Maybe 10-20 bps on average, but that's $1M-$2M on every $1bn in charges. Also why they've been pushing co-branded AMEX cards and business charge cards.

For Those of us that got the Chase Freedom card you can change it to the Chase Freedom World Mastercard for no fee and it has all the same benfits of the regular freedom card and a world card.

EVERYONE HERE IS CONFUSED!!! To sum up 5 pages of threads:

This not a no-limit credit card with revolving credit. There is a limit. If you go over it you will not be charged a penalty. The confusion is that there are credit cards out there with a revolving line of credit.

"Card agreement states that the customer has flexibility to make purchases in excess of his/her credit limit. Therefore, we do not report to the credit bureaus the revolving credit line amount. We do report the current balance to the credit bureaus and maintain that our credit reporting is accurate." -media relations citi card.

IF YOU DO NOT PAY IT OFF BY THE DUE DATE YOU WILL BE CHARGED THE OVER FEE.

Also I am no credit expert but for those of you worried about longevity I loose my card about once a quarter. And I have to get a new card number. I have an excellent credit score. By that logic I have never had my citi card for more than 4 months.

This card has all kinds of useful/useless benefits that can be found here:

www.mastercard.com/us/personal/en/aboutourcards/credit/world_card.html

I agree this has to be some kind of scam. all i can think of is this:

1) Merchants have to pay higher fees to accept this card like they do with a normal rewards card.
2) there is no preset spending limit this might entice a few idiots to spend too much on their card and have to pay interest. My limit is pretty low so if i take advantage of the $1,000 off a private jet rental i will owe quite a bit of interest as i pay it off over the next few years.

tbigone said:EVERYONE HERE IS CONFUSED!!! To sum up 5 pages of threads:

This not a no-limit credit card with revolving credit. There is a limit. If you go over it you will not be charged a penalty. The confusion is that there are credit cards out there with a revolving line of credit.

"Card agreement states that the customer has flexibility to make purchases in excess of his/her credit limit. Therefore, we do not report to the credit bureaus the revolving credit line amount. We do report the current balance to the credit bureaus and maintain that our credit reporting is accurate." -media relations citi card.

IF YOU DO NOT PAY IT OFF BY THE DUE DATE YOU WILL BE CHARGED THE OVER FEE.

Also I am no credit expert but for those of you worried about longevity I loose my card about once a quarter. And I have to get a new card number. I have an excellent credit score. By that logic I have never had my citi card for more than 4 months.

This card has all kinds of useful/useless benefits that can be found here:

www.mastercard.com/us/personal/en/aboutourcards/credit/world_card.html

I agree this has to be some kind of scam. all i can think of is this:

1) Merchants have to pay higher fees to accept this card like they do with a normal rewards card.
2) there is no preset spending limit this might entice a few idiots to spend too much on their card and have to pay interest. My limit is pretty low so if i take advantage of the $1,000 off a private jet rental i will owe quite a bit of interest as i pay it off over the next few years.

No one here is concerned with going over their limit or being charged an over the limit fee. They are concerned that no credit limit will be reported to the Credit Reporting Agencies. When the CRAs don't have a credit limit they will often use the highest reported balance. If that highest balance is this month it will appear as if you are at 100% utilization even if you are below 50%. This could have catastrophic effects on your accounts.

You are the one confused.

I see I was clear as mud. There is a credit limit on the card. So Citi Bank reports the limit.

They do have a card with revolving credit. This card they do not report the limit on.

mhsu1 said:I can't find the answer to my question on MasterCard or Citi's websites… but does anyone know if the Dividend World card has Extended Warranty Coverage like the Dividend Platinum does?

Yes, the exact same coverage...

tbigone said:I see I was clear as mud. There is a credit limit on the card. So Citi Bank reports the limit.

They do have a card with revolving credit. This card they do not report the limit on.


okay, assume it does report the limit. What if you spend more than the limit in one month? That will be over 100% utilization.

For thoes who think will lost credit history, my expeirence is, last time when I changed my Citi MasterCard to Citi AmericanExpress, the history is showing the same account, let's say, since Aug. 1999.

WalStMonky said:People still think Fair, Isaac are incompetent. Sigh.

I know you aren't a believer in the credit line limit not reporting hurting your credit theory. However, there are people who have seen their FICO score go down due to the fact that their high balance matched their current balance.

Given that FICO comes from Fair, Isaac (even has Fair Isaac in the name) I don't know how you can not "think" this.


Rather than sighing, why don't your provide contradictory evidence. Not just a premise that Fair, Isaac is smart and therefore they wouldn't do something dumb, therefore they wouldn't do this. All I've seen you do is present circular logic.

I called yesterday to decline the offer. She made the changes in about a minute -- but not before making me a *sweet* balance transfer offer of 6.99% for 12 months. In the same breath (as if she could tell I was going to decline), she asked: "Do you have any stocks or other investments that are returning more than that rate?"

I can't believe Citi would condone trying to get people to take BT (or convenience checks) money to play in the stock market. And she didn't even mention the 3% fee (no cap) that all the checks I've been getting recently feature.

Yeah, I know a sure thing in the stock market that will return over 10% in the next 12 months & I really want to risk the 24% (or higher) rate that I'll be charged on the money after the year is up...crazy.