Credit card companies offer two major types of credit cards: cards with low interest rates on purchases and balance transfers, and rewards cards. Low interest cards are designed to benefit those who carry a balance on their cards, while rewards cards benefit customers who pay off their balances in full each month.
However, some cards offer both features. For example, you can find cards that have an introductory finance offer and also cash back rewards. The Citi® Dividend Platinum Select® Visa® is one such card that helps cardholders pay off balances now, and earn rewards later.
Key Features
- Introductory Financing. Cardholders receive a 0% introductory APR on purchases and balance transfers for 12 months. There is a 3% balance transfer fee.
- Sign-Up Bonus. After you spend $500 in the first three months, you receive a sign-up bonus of $100.
- Cash Back on All Purchases. All spending results in 1% cash back. There is no limit to the amount of cash back you can receive.
- Extra Cash Back for Specific Spending Categories. Each quarter, Citi selects multiple spending categories that receive 5% cash back. For example, customers could receive the bonus on purchases from airlines, hotels, and car rentals or on purchases from grocery or department stores. Cardholders must enroll in the spending categories each quarter.
- Google Wallet Integration. This card integrates with the Google Wallet payment system. Cardholders can use their mobile phones to make purchases while visiting select merchants.
- Fees. This card has no annual fee, but there is a 3% foreign transaction fee on all purchases processed outside of the United States.
Advantages
- Hybrid Rewards and Financing. This card doesn’t feature the best introductory financing offer, nor the best rewards. Instead, it offers a “good” introductory finance rate paired with a “good” rewards program.
- No Annual Fee and a Decent Sign-Up Bonus. Many credit cards offer a sign-up bonus, but charge an annual fee. This card has no annual fee and provides cardholders with a $100 sign-up bonus when you charge $500 to the card in the first three months.
- Mobile Payment Systems. In addition to Google Wallet integration, Citi gives you a payment tag that works with PayPass, a system which lets you avoid swiping your card at select gas stations and stores.
- Integrate With Other Citi Accounts. Citibank is one of the largest retail banking chains in the United States. By adding this card to your Citibank accounts, you can simplify managing your finances.
Disadvantages
- High Interest Rates. This card does not offer a low APR.
- You Must Enroll in Reward Categories. Citi offers increased rewards in certain categories of spending, but cardholders must take the time to enroll in the spending categories each quarter in order to actually receive these bonuses.
- Foreign Transaction Fees. This card charges cardholders a 3% fee for making purchases outside of the U.S. International travelers should find a credit card without foreign transaction fees.
- Middle-of-the-Road Benefits. People who don’t pay off their credit cards each month or who plan to transfer balances would be better served by a card with a lengthy 0% financing period. Applicants who don’t carry a balance each month may earn greater rewards with one of the best cash back credit cards.
Final Word
The Citi Dividend Platinum Select Card is both a balance transfer card and a rewards card. New cardholders can use the card to receive a year of interest-free financing on both new purchases and balance transfers. At the same time, customers can earn 1% cash back on all purchases, with additional cash back on select categories of charges. Therefore, the ideal cardholder is someone who is trying to pay off the balance in the next year, and earn a little cash back on charges in the future.
What are your thoughts on the Citi® Dividend Platinum Select® Visa® Card?
