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This is far and away one of the goofiest programs I have seen but is definitely worth a look.

Background:

This is a mail offer only and linked to specific citi cards ie targeted. I have not missed any payments on my AOR stuff and my FAKO scores are 720-740 currently.

I just received the offer for a drivers edge card that has 0% on it until 9/2/08 and currently has a $9683 balance out of 10K line (AOR money, yeah I know its close to the limit but I don't care) I currently have 69K (70K cl) on a citi professional card and $7.3K (7.5KCL) on a business card at 0% that expires about the same time and another 12.5K in cl on other citi cards that I use for everyday or not at all. All 0% will be paid at the due date.

I have been making just the minimum payment on all of my AOR cards and have even double dipped at the 6 month mark (taking more bt money to get back the first 6 months of payment). This may have triggered this offer.

The offer states:

Pay over the minimum for the 4 months of the program and you will receive 10% in a statement credit for the amount paid over the minimum. Ex minimum for each of the 4 months is $100. You pay $1000 ($1000-$100)*4 = $3600*.1 = $360 Cash Back. Or, 100*3 +3700*1 will give you the same result. They put on the offer letter "Wouldn't you like to be rewarded for good credit habits?"

The catches:

1. You can't charge a single thing during the timeframe (big deal, I have not made one purchase on the card ever). If you do, rewards are forfieted but #2 still applies. They call this a temporary credit freeze. You may not be able to charge anything until the statement credit appears (1-2 billing cycles after the program ends)

2. Upon completion (either sucessful or unsucessful) they will decrease your cl by the overage of the minimum + the Cash Back. In the example above the cl would decrease by #3960. This could get sticky if you pay over the required $5500 above the mimimum to get the maximum Cash Back. IE I make the minimum payments until 0% up then I pay ~9400. I get the $550 back but the over the minimum payment was ~9300+$550, leaves me with a line of 10K-$9850 = $150.00

My plan:
                Current Balance    payment Due   Due Date    Payment Made			
June            9683               145           30-Jun      145
July            9538               143           30-Jul	     3954
Enroll in program by July 31
August          5584               84            30-Aug      5584


$5500 paid over the minimum +$550 back = projected cl decrease of $6050.

Yeah I know it cost me about $10 in interest for that extra $3811 early payment but I want to protect as much credit line as possible.

I read over all of the terms and conditions and nowhere does it say anything about carrying a balance to get the credit and others in the other thread did not have to. I would not do this if I did not already have ample other lines (around 90K) but the $550 is hard to pass up. Heck I did an AMEX app with an experian hard pull for a $250 GC only.

$6050 of CL for $550 tax free sounds like a good deal to me. Thoughts? And BTW Drivers edge has already forked out over $200 in mileage credit. This is the card that keeps giving.

Member Summary
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Congrats! Too bad they are taking so long. The documentation says "up to 3 billing cycles" for the credit. Some people a... (more)

goldenkidx (Feb. 10, 2009 @ 4:57a) |

So your credit came mid statement cycle? My program was successfully completed as of December 22, 2008 but have not been... (more)

goldenkidx (Feb. 26, 2009 @ 5:05a) |

this is still active. i have a 0% for life (with 2 min. purchases/cycle), and i called to see when my new card was comi... (more)

teammjs (Mar. 25, 2009 @ 10:12a) |

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Sounds like a good deal. Go for it!

If you can always reallocate, why not max it out? Worst case scenario, you have to wait six months until you can hit the CLI button again.

this seems to be the weirdest credit card program ever!

even weirder than FNBO approving $15k lines, allowing BT to go through and then closing the account!

SOB I just checked my Citi cards and they have reduced my lines...

I have a Professional TYP card that I use for restaurants that had 10K -> now 1K (and I have normal monthly charges on that of about $900 which is auto PIF every month)

My diamond card they reduced from 2.5K -> 500

My citi cash card they reduced from 70K ->69.4K

5 more hours until they open up to talk to an account rep. If you get one of those letters, make sure that they haven't pre-touched you lines.

lines restored after complaining, but I am still going to take advantage of this deal

I wish I got offered this deal. In fact, this might be the ONE disadvantage of doing BTs on citibank business cards... they may not ever get this offer.

This is fascinating. They think you are on the verge of default and are essentially willing to buy you out of what they now consider an over-extension of credit. Will be very interested to see if this appears as a negotiated settlement or anything on your credit report. (Or whether you get a 1099 in the amount of the "forgiven" debt).

If none is true, I would GLADLY trade $6K in CL for that amount of cash. I'd max out the deal, in fact.

Man, would be nice to get that on the card with the 70k balance.... 7k Cash Back =)

I would be all over this deal if I got one. In fact, I will be happy to close the whole card for $500 bonus.
Just wondering, is there any way to tip them off that I am a deadbeat ?
... Maybe transfer something close to max, then pay exact minimum for number of month ?
I have 0% 6 month offer sitting on one of my Citi card. Fee is 3%, $99 max.
I did not want to take it, since profit after tax is pretty marginal on 17K CL, but now, I think, I would try it just to trigger this offer.

VanceWade said: This is fascinating. They think you are on the verge of default and are essentially willing to buy you out of what they now consider an over-extension of credit. Will be very interested to see if this appears as a negotiated settlement or anything on your credit report. (Or whether you get a 1099 in the amount of the "forgiven" debt).

If none is true, I would GLADLY trade $6K in CL for that amount of cash. I'd max out the deal, in fact.


I did the deal last time, pocketed the money, have long since had my credit lines restored, no 1099. Though would a 1099 really be a deal killer? Gosh, wouldn't want any extra taxable income now, would we? Anyway, all I can say is Citibank been berry berry good to me. Yeah, what are all my Citibank balances doing on biz cards now? Boo-effing-hoo.

VanceWade said: This is fascinating. They think you are on the verge of default and are essentially willing to buy you out of what they now consider an over-extension of credit. Will be very interested to see if this appears as a negotiated settlement or anything on your credit report. (Or whether you get a 1099 in the amount of the "forgiven" debt).

If none is true, I would GLADLY trade $6K in CL for that amount of cash. I'd max out the deal, in fact.


It's more of a credit "buy back" they are just reducing the lines. I am paying off the balance so there is no settlement. From what I have read it is a statement credit so it is a reward (no 1099). The other catch is the program has the $550 limit for the bonus. Figure it would work great for someone with one or two low limit citi cards if they pay back 2K on a 2K card, the payment is $200 and the card is closed. I think that Citi doesn't plan on having people like me with 90+K in lines.

FAIL, check your math. psh

Sounds like you won the lottery, Mr. dmlavigne1.

I say, go for it, and max out the benefit.

I got the same offer today, via phone call to my home, and accepted. The card was a 0%, $22k limit, $21,500 balance for 9 more months.

VanceWade said: if this appears as a negotiated settlement or anything on your credit report

getting a 1099 would be ok (preferably not)

but has anyone heard of someone getting this reported to the credit bureaus?

-Peter

I did this last year. I can't believe they're doing it again. To me it was like a letter that reads, "Do you want $550 free?" and it wasn't from an African Prince. There are no catches, do it.

I received this same offer in today's snail mail.

Looks like it's worth doing. Naturally, I'll need to jump through hoops first by paying off most of my 0% balance just prior to enrolling - so as to avoid losing more than the 6K credit limit.

My current 0% BT is due late next month and enrollment in this is required by the 31st of this month. That translates into a month of lost interest on the ~17K I pay off prior to enrollment...annoying, but I think I'll live.

That translates into a month of lost interest on the ~17K I pay off prior to enrollment...annoying, but I think I'll live.

Why 17k? Seems like you should just pay off 5,500.

Just got this offer today as well, I am going to pay all but $6000 of my BT off, and try to reallocate the credit limit to another card with 0%.

ds394 said: That translates into a month of lost interest on the ~17K I pay off prior to enrollment...annoying, but I think I'll live.

Why 17k? Seems like you should just pay off 5,500.


The terms state that the program runs for four months and the ability to charge is frozen. If your BT payoff is during the four months you want to pay it down before enrolling to prevent losing available lines or pay interest on the money which is a FWF no no.

Unless your credit report has issues I wouldn't worry about the included credit line reduction. When I was in the program I was very careful to minimize the CLR. Then within a month of the program ending Citi gave me an unsolicited CLI to 40% more than I had before. All I had to do was borrow some more of their doggone money at 0% to get it.

Please, oh please let me get this offer. My wife got it on a Citi card with $18700 credit limit, only her credit line was not reduced. She paid $5500, got $550 (after a reminder contact), and then they offered her 0% with no fee for five months. She took that offer, and while in the middle of enjoying the 0%, they raised her credit limit to $25000. I don't try to understand why, I just try to understand how to take advantage.

Hi All,

I am seeking your advise. Your opinion on further matter would be highly appreciated.

A few years ago (2004) I bought a car on my credit card. It was a great deal, 1.99% until paid in full. Since then I have been enjoying low interest and been paing it off slowly (not other transactions on my account since then). My current balance is $7,500. I have more than enough money on my savings accounts earning around 4% APY to cover this debt.

The credit card company (citi) sent me a letter saying that I can enroll into Citi Payment Partner Program. Basically they are going to credit my account with 10% of all payments I make during the next 4 months that exceed my minimum payment subject to a $550 maximum.

I have a few options here:

1. Pay $5500 at the end of the 4 month period. This way I will end up with $7500-4x$110-$5500-$550=$1010 and I can take time paying it off for 2% forever.

2. I can pay everything off and collect $550 cash by requesting a check for the credit of $550 on my account. This way I will loose $7100-$550= $6550 in cash.

3. Or I can just ignore everything and keep paying off my balance until the Sun will cool down to the temperature level not suitable to maintain Life in our Solar System.

I am not sure which one to take. 10% seems tempting. I tend to think of it as a sudden impulse return when investing $5K+.

There are two important things that might influence your suggestion:
1. My emergence fund will still be solid if I pay off this balance.
2. I am doing this 0% BT game for several years now. And I intend to continue doing it. So having no debt WHATSOEVER might help me get more credit cards with 0%BT after I pay off my currents 0% BTs.

What would you do ?

by the way, a little update:

My latter from S.Larson has no mentioning of any CL adjustment, or freezing. I also verified with CSR that this is not reflected on my credit report in any way.

I would definitely take the $550. As far as option 1 or 2, I guess earning 2% more than you are paying on the remaining $1010 wouldn't seem worth it to me, especially if you could reallocate the credit line to some 0% BT offer.

That's just the best course of events one can imagine....

I just enrolled with a $5584 balance. I thanked the CSR again and again for the 0% one year money capping it off with buying 6K of the CL back for $550. Net return for the card ~$900 on a 10K line with 4K left to CLR next time.

Did any of you receive a confirmation in the mail after you signed up for this program? How long did it take to get it?

They say 3 weeks.

I'll post back when I get it.

Received my letter yesterday confirming my enrollment...took about 2 weeks to get.

REceived my letter a wek or so ago. No issues. Final payment is scheduled for 9-2-08 $5584. I overshot by $1.00 due to rounding.

I received my offer for a 20% credit with a maximum of $550.

Thank you everyone for sharing details on prior offers.

If you really wanted to push the offer, you would pay $0 extra for the first 3 payments and then pay the full $2,750 extra on the fourth and final payment so you can hold onto your money as long as possible. With MMAs paying 4%, I will make a single extra payment of $2,750 once enrolled in the program simply so I do not forget to make the extra payments and then go back to making the minimum payments.

Completed the process and the rep said the credit should show up in January. I'll post back when it does

Yep, mine should post sometime in December...January at the latest. Will update as well.

n/m found a copy of the letter:

http://consumerist.com/5060064/does-the-citi-payment-partner-program-work

I think it's hysterical that Citi can't tell the difference between people who are really at risk and those who are using their BTs for profit-making.

smackfu said: I think it's hysterical that Citi can't tell the difference between people who are really at risk and those who are using their BTs for profit-making.

They couldn't tell the difference between toxic mortgages and good mortgages either. At least this hasn't required a bailout yet....

My $550 was credited to my account on 12/30...I find it interesting that Citi would want to take this an expense in 2008 with all the losses they already have! Do they not expect 2009 to be more profitable Either way, thanks for the free money Citi!

Of course you want to take any additional foreseeable losses in a year that's already in the toilet. That way, next year looks that much better.

Skipping 17 Messages...
this is still active. i have a 0% for life (with 2 min. purchases/cycle), and i called to see when my new card was coming since the one i have expires next month.

without prompting, the CSR offered me this program. i have $29k on the card right now, and the requirement that i can't make purchases (thus, ending my 0% for life) is a deal-breaker, as i essentually will earn the $550 after tax in about 6 months of a 5% reward checking account.

crafty of them to try to buy me out of their 0% life card, but maybe they're getting aggressive again on other 0% cards.



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