Question
I head about the Citibank mortage credit card program. Basically they give you 1% cash back which is applied to your mortgage at whoever carries your loan. The cashback is paid once a year to the mortgage company which will probably end up as a principal payment on your loan to the bank.
Does anyone here have this card? Appreciate any input. There is no limit on the points earned so it sounds interesting...
Rob
Answer
Does anyone here have this card? Appreciate any input. There is no limit on the points earned so it sounds interesting...
http://www.usatoday.com/money/perfi/credit/2004-05-17-credit-card-rewards_x.htm
Why not get a cash-back card instead? I love the little blurb at the end:
"Another issue: You usually get more value out of points and miles than cash-back rewards, McKinley says. For example, one air mile typically carries a value of 2.5 cents, compared with cash-back programs that usually deliver 1 cent or 1.5 cents per dollar charged, he says."
Everyone's a valuation expert.
Answer
http://www.usatoday.com/money/perfi/credit/2004-05-17-credit-card-rewards_x.htm
Why not get a cash-back card instead? I love the little blurb at the end:
"Another issue: You usually get more value out of points and miles than cash-back rewards, McKinley says. For example, one air mile typically carries a value of 2.5 cents, compared with cash-back programs that usually deliver 1 cent or 1.5 cents per dollar charged, he says."
Everyone's a valuation expert.
Most of the cash rebate card have a limti on the rebate amount. I have seen some with a max of 600.00. With unlimited this sounds interesting. I value air miles at 1 cent a mile as well. 25K miles get me an airfare worth 250.00 or less if I am lucky.
Rob
Answer
I don't fly much, so miles cards aren't a good deal for me, and there is no one store where I shop a lot, so points cards aren't a very good deal either.
I have used a couple different 1% cash back cards over the past years. I concluded the cards that offer a flat 1% are a better deal than the tiered programs like Discover. (At least for me; you have to spend a lot of money before you come out ahead with the tiered programs that go up to 2%.)
I'm currently using the Chase PerfectCard, which is a gasoline card that provides 3% back on gasoline purchases and 1% back on everything else. It's good on any gasoline purchases, not just a particular brand.
Citi just changed the terms on their Dividend card, so I think I'll be switching back to it. They now offer a full 5% cash back on purchases at supermarkets, drugstores and gas stations, plus 1% on all other purchases. Previously it was just a flat 1%.
The Home Rebate card is just 1%, but there is no cap like there is on most other rebate cards, so it just depends on how much you spend each year.