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Wednesday, May 16, 2007

Citi Dividend

I think most of my readers have a Citi Dividend card. You probably received a glossy pamphlet about your Dividend card being converted to a World card.

There are no real benefits to the conversion.

There are, however, several downsides.

  1. The card will have a new number so all of your auto-payments will have to be changed
  2. This is a "prestige" card that doesn't report a spending limit (although they won't let you spend an unlimited amount either). This may sound good but your credit report won't show a limit so they will assume the largest amount you spend is your limit. This could make it look like your card is maxed out if you happened to spend extra one month.
So if you have no auto-bill payments and aren't going to be applying for a car loan or mortgage in the next six months it might be easiest to do nothing. However, if (1) or (2) apply to you, you have until June 30 to call the phone number to decline the conversion.

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