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Read before you apply. Citi new $60 annual fee if minimum spending not met. Affects new and old.

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Anonymous
Not applicable

Read before you apply. Citi new $60 annual fee if minimum spending not met. Affects new and old.

Citi credit card is charging me a $60 annual fee on what was before my NO ANNUAL FEE card. Citi CSR told me that people who are spending less may be be hit with this annual fee. But I still don't personally see below no annual fee *requires minimum spending* anywhere in their current promos for new cards.

 

If you are planning to apply for a Citi credit card. BEWARE! If you aren't spending enough you may get hit with an annual fee on the NO ANNUAL FEE card. I did.

 

I feel this is very deceptive of Citi to continue advertising NO ANNUAL FEE. They should be advertising No annual fee *requires minimum spending* and list the fee and minimum requirement. I'm disappointed.

 

I'd personally *not apply for a new Citi card.

 

Very rarely do I say I'm disappointed. At least other brand cards list all their fees up front. I don't see Citi doing that and that's why I'm disappointed. I personally think in my opinion it is deceptive advertising how Citi is not disclosing *minimum spending requirement* on their current promotions for no annual fee cards.

 

I will not be recommending Citi cards to anyone until the fee is removed.

 

=> Citi it stated that I needed to meet a minimum spending of $2,400 annually to have the annual fee credited back.

 

Source #1

http://newsblogs.chicagotribune.com/the-problem-solver/2010/02/new-annual-charge-in-the-citi.html

 

Source #2

http://www.bankrate.com/blogs/credit-cards/citi-adds-60-annual-fee.aspx

 

Source #3

I've received the letter personally. Smiley Sad

Message Edited by ilovepizza on 02-26-2010 04:35 PM
Message 1 of 39
38 REPLIES 38
smallfry
Senior Contributor

Re: Read before you apply. Citi new $60 annual fee if minimum spending not met. Affects new and old.

Hey Pizza. This is one more reason not to apply for more credit than you actually need. After all 2400 bucks is not a lot to charge annually. It is a bit misleading though.
Message 2 of 39
fused
Moderator Emeritus

Re: Read before you apply. Citi new $60 annual fee if minimum spending not met. Affects new and old.

Hey, Pizza, where have you been hiding?Smiley Happy

 

We'll see how many people have their accounts closed for not spending 2400 a year and refusing to pay the new AF.

Message 3 of 39
laz98
Senior Contributor

Re: Read before you apply. Citi new $60 annual fee if minimum spending not met. Affects new and old.

very unfortunate.  i wouldn't mind having a citi card.  i guess if chase is going to do away with the rewards program for my debit card, i will have to charge my purchases onto something else!
Message 4 of 39
fused
Moderator Emeritus

Re: Read before you apply. Citi new $60 annual fee if minimum spending not met. Affects new and old.

I have a CITI Dividend Plat Select that I can charge a lot. So, this shouldn't be an issue for me. Obviously, I cannot say the same for others. Banks will ALWAYS find ways to take money from us.
Message 5 of 39
Anonymous
Not applicable

Re: Read before you apply. Citi new $60 annual fee if minimum spending not met. Affects new and old.

I'm holding up, thank you for asking. I've calculated the rewards currently with Chase vs Citi. No matter how I spend it, I still get more rewards with my Chase and Discover cards vs my Citi card.

 

5% "Cash" back on gas from Discover up to $100

3% "Cash" back on food, gas and a few other things from Chase.

1% "Cash" back on all other from Chase and Discover.

 

Citi card... 1 point for each dollar. 8,000 points needed for a $50 gift cash card. ($8,000 in speding for $50 cash back). I'm better off paying the $60 fee and not using it. I guess I can swing over $2400 to Citi, loose the 1% of non qualifying purchases from Chase or Discover ($24 in rewards, get $60 fee back from Citi and only be out the $24. Better than being out $60).

 

Citi charges the Annual fee up front and if I spend over $2,400 the $60 fee is credited back after 1 year. Then the fee is charged again, and credited next year, ect... Their still charging the fee either way. I gain nothing financially by keeping the card. It's a very old card, not sure what option I'll take. Citi won't do a product change, they know it will impact peoples credit and  I wanted to warn people who might apply for the Citi card that there can be an annual fee once they receive their no annual fee card.

 

I also did a search-engine search for terms: Citi $60 Annual Fee, and there's a lot of poeple posting about this too.

Message Edited by ilovepizza on 02-26-2010 06:42 PM
Message 6 of 39
fused
Moderator Emeritus

Re: Read before you apply. Citi new $60 annual fee if minimum spending not met. Affects new and old.


ilovepizza wrote:

 

Citi card... 1 point for each dollar. 8,000 points needed for a $50 gift cash card. ($8,000 in speding for $50 cash back). I'm better off paying the $60 fee and not using it.


Good to hear you're doing well! That's a bankers lousy deal. Yuck!!!!!!!!!!!!!!!Smiley Mad

Message 7 of 39
haulingthescoreup
Moderator Emerita

Re: Read before you apply. Citi new $60 annual fee if minimum spending not met. Affects new and old.

As far as I'm concerned, I look on an annual fee as eating into my rewards. Unless there's some utterly astounding rewards going on, a fee drops the real rewards rate to a level that is too low to attract me.

A lot of banks are testing the market out there to see who will give them free money. Smiley Wink
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 8 of 39
fused
Moderator Emeritus

Re: Read before you apply. Citi new $60 annual fee if minimum spending not met. Affects new and old.


haulingthescoreup wrote:

A lot of banks are testing the market out there to see who will give them free money. Smiley Wink

True, and I call it beta testing.Smiley Surprised

Message 9 of 39
smallfry
Senior Contributor

Re: Read before you apply. Citi new $60 annual fee if minimum spending not met. Affects new and old.

Is anyone going to close these cards?
Message 10 of 39
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