Citi Card Balance Transfer Deception – shame on Citicard
by Mr Credit CardOne of the ways to save on your credit card interest payment is to transfer your balance to a credit card offering a 0% APR teaser deal. This is a viable strategy debt reduction strategy if used carefully. But recently, issuers like Bank of America have removed the cap on the balance transfer fee. And guess what?
Citibank has just in the bandwagen big time. Once again, they are changing their balance transfer fee policy quietly and secretly. As recent as 29th June, these four cards remained the only citi cards with no balance transfer fee for the introductory balance transfer offer. Well, I’m going to let the cat out of the bag here. Here are the latest changes (all for the worst).
Cit® Diamond Preferred® Card – In the past, they had the 0% APR deal for 12 months and no balance transfer fee. Last month, they gave themselves room to wriggle by having the choice of giving consumers either a 6 or 12 month deal depending on your credit. They then removed the cap for balance transfer fee, but kept their no balance transfer fee policy for the introductory period. Now, they have just dropped the latest bombshell. There is no a balance transfer fee and there is no cap on the BT fee!
This gets the ultimate thumbs down from me. I no longer recommend this card for balance transfers. In fact, I no longer recommend this card.
Citi® Upromise® Card – Once again, this card used to have no balance transfer fee for their 12 month 0% APR deal. They have now imposed a balance transfer fee. But unlike the previous card, they capped the balance transfer fee to $75. Update – Citi has now removed caps on BT fees for all cards.
Citi® Drivers Edge® Options Platinum Select® Card – Technically, this card has no balance transfer fee for their 0% 12 month balance transfer (according to their terms and conditions). However, the fine prints of their application page states that there actually is a balance transfer fee. Given Citi Card constant tweaking of their balance transfer fees, I’m simply not sure about this card any more.
Citi® Home Rebate Platinum Select® MasterCard® – This remains the only citicard today with no balance transfer fee for the 12 month 0% APR deal. But how long can this last? Update : 25th February 2008 – This card now charges a BT fee for the introductory offer and has removed all caps on BT fees.
Citi®ProfessionalSM Cash Card – This is now the only citicard that offers a 0% BT deal for 12 months and waives the balance transfer fee for the introductory offer. In fact, right now, this is the only card in the market with such a deal. Grab it while it last! Latest Update 5/2008 – Not only is there a balance transfer fee now, there is also no cap on it!
Bottom Line – I do not recommend anyt citi card if you want to get a 0% balance transfer deal. Instead I would recommend the IBERIABANK Visa Platinum, which has a 0% BT deal for 6 months and no balance transfer fee.
August 13th, 2007 at 12:32
[...] Ask Mr. Credit Card with a post about Balance Transfer Deception. Frankly, I’m shocked that any credit card company would try to deceive its customers! (Sarcasm… so difficult to type…) [...]
August 14th, 2007 at 01:53
Thanks for the info. I was cringing as I read this, as my husband and I just got a Citi card for the purpose of transferring a balance. Fortunately we got the last one you mentioned. We’re planning on paying it completely off before the interest rate kicks in, and we don’t plan on ever having a credit card balance again after that.
October 29th, 2007 at 18:13
I have the dividend card that gives 5% rewards in the form of thankyou points for “everyday” purchases but the 5 % ended for me now that I passed twelve months. I am closing it and moving over to the professional card as it gives me 3% for everyday purchases with no time limit ( or at least until citi changes it for me
). Until then though – the professional card for me.
Wiju
March 9th, 2008 at 19:47
[...] One of the posts that got my attention was Citi Card Balance Transfer Deception by Ask Mr. Credit Card. My husband and I just got a new Citi card for the purpose of transferring a balance. Fortunately, it was the only Citi card mentioned in the post that is still good for balance transfers. [...]