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Fred2280
Posts: 65
Registered: ‎03-05-2008
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Citibank Payment Partner Program? (20% credit from payments)

I have a Citibank Div. Plat. Select. CL of 2,800. Was using mostly all of it. (2700) Just transferred it to BofA for a 3.9 BT. This originally was a citi BT -just went up to 10.49) Go out to the mailbox and got this offer from Citi. Had to call up. Will get back 20% of my on-time payment over the minimum. Within 3 billing cycles, account will be credited up to $550. You can't charge anything in the few months. Acct has to be in good standing. I just made $540 and got a lower interest rate. Anybody familiar with this?
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psychic
Posts: 1,518
Registered: ‎04-20-2007
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Re: Citibank Payment Partner Program? (20% credit from payments)

From what I've read, this program is an attempt to entice account holders carrying balances to quickly pay down their outstanding debts.  It's by invitation only.   
 
If I'm mistaken about this, someone please correct me!
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syl03
Posts: 4
Registered: ‎04-26-2009
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Re: Citibank Payment Partner Program? (20% credit from payments)

This program can actually hurt your credit score, upon completion they will lower your credit line with the same amount that they gave you back (20%), and also the money recieved is actually reportable as income...
Valued Contributor
Jazzzy
Posts: 2,679
Registered: ‎07-29-2009
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Re: Citibank Payment Partner Program? (20% credit from payments)


syl03 wrote:
This program can actually hurt your credit score, upon completion they will lower your credit line with the same amount that they gave you back (20%), and also the money recieved is actually reportable as income...

Hi...and welcome.

 

When you say it can actually hurt your credit score, do you mean because of the lowered credit line? A lower credit line only hurts your credit score if you carry balances on other cards and have to worry about utilization percentage. Is that the harm...or is there something else? Do they make any sort of indication on your credit report?

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Buffaloman57
Posts: 6
Registered: ‎02-26-2009
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Re: Citibank Payment Partner Program? (20% credit from payments)

If they are going to report the 20% back as income.

You will be getting a 1099 form at the end of the year and

you will have to pay all the taxes on that money.

 

 

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syl03
Posts: 4
Registered: ‎04-26-2009
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Re: Citibank Payment Partner Program? (20% credit from payments)

Under the law if the money recieved is below $600 citibank will NOT have to send you a 1099, however you are still supposed to report it as income...and pay taxes on it. The impact on your credit score is that you will have less credit availiable, and if you keep a balance your credit score will for sure decrease as the decreased credit line will be reported to the credit bureaus.
Valued Contributor
Uborrow-Upay
Posts: 2,708
Registered: ‎10-16-2008
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Re: Citibank Payment Partner Program? (20% credit from payments)

Just wanted to mention that the original post for this thread is from June, 2008. This Citi program may or may not be offered at this time.

 

 

New Member
syl03
Posts: 4
Registered: ‎04-26-2009
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Re: Citibank Payment Partner Program? (20% credit from payments)

Yes it is still offered, got the offer last week, cancelled it as soon as I had done some more research on the program.
Valued Contributor
Uborrow-Upay
Posts: 2,708
Registered: ‎10-16-2008
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Re: Citibank Payment Partner Program? (20% credit from payments)

Thanks for the update, syl03...and, welcome to the forum! :smileyhappy:
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
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Re: Citibank Payment Partner Program? (20% credit from payments)


syl03 wrote:
This program can actually hurt your credit score, upon completion they will lower your credit line with the same amount that they gave you back (20%),

 

If what you state is correct only one dollar in five that you reduce your balance by will be deducted from the CL. Assuming everything else remains constant you will be improving your UTIL and not degrading it. This will help FICO. It is also a case where "dollar sense" has to prevail over "FICO sense". However, whatever participating in this program means for the long term status of your account with Citi is anyone's guess. I'm sure it will not be viewed as a positive.

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