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hello,
i have read a few posts where the thought is the citi double might be cancelled at some point. i am wondering why this card might be thought to be cancelled at some point and why i have not seen any message of the arrival+, capital one venture, or BofA travel rewards (for those with high return rates, although the return one those receiving greater than 2% is due to account interest). i am looking to apply soon for the citi double, and i know no one can predict the future, but curious why a travel card with 2% return would live longer than a cash rewards card with the same return rate.
I believe that it's sustainable.
Annual fees apply to those cards, they thus have an additional revenue stream outside of swipe fees and interest. Fidelity shows that a 2% card can thrive for a long period of time without an annual fee, but I doubt it's a huge money maker for them. Citi's advantage is that the 2% is not upfront and there is an enticement to pay down the debt rather that default, the 1% cash back. Rewards play havoc with the mind and the that 1% May be enough to get people to be people to pay citi back 1st, or at least try to. Basically it reduces risk in an innovative way, whether it really works remains to be seen
then there is nasa, with no af
@juggalo9er wrote:then there is nasa, with no af
NASA has a threshold before you get 2%, although that is very small. It also pays out just once a year and that reduces costs.
right, i forgot about the annual fees. good points across the board. still hesitant on the citi double given i am pretty conservative with credit, but you guys all make good points.
@longtimelurker wrote:
@juggalo9er wrote:then there is nasa, with no af
NASA has a threshold before you get 2%, although that is very small. It also pays out just once a year and that reduces costs.
^+1
@Anonymous wrote:I believe that it's sustainable.
I agree, I believe they are way too many clueless people who would carry a balance on this card, even for short whiles, to make it profitable.
BTW, the clueless debt carriers I am referring are of course not the well informed, and well justified goof folks in this forum, but those disgusting ignoramuses out there that have debt for NO VALID REASON. God, I hate them so much (but thanks for financing this and other cards....)
There are swipe fees from the merchant that are greater than 2%...not a lot higher than that, but I'm sure they're making money on quantity. I would guess the Double Cash gets used a LOT more than other cards that have say, a 1% reward for the consumer. I know it does in our house...anything that doesn't qualify for a higher reward on another card automatically goes on Double Cash, and I've completely stopped using any of our 1% or 1.5% cards.
So Citi probably actually makes more per cardholder on the DC than on some of their other cards. And also, as mentioned above...there are sooooo many people out there who get suckered in by the rewards and then don't or can't PIF, and end up paying tons of interest. A lot of people have good intentions but then can't follow through.