topic Re: Citi Dividend World Master Card...need help! in Credit Cards

Citi Dividend World Master Card...need help!

Anonymous — Fri, 23 Jul 2010 20:54:33 GMT

My old citi dividend is being converted to this new World Master card....can anyone please confirm with me that if this card reports a credit limit or not?

If it doesn't report a credit limit, what is the reason of getting a CLI on this card in the future and how much would it effect my credit score if I keep paying it in full every month? I need these information so I can decide if I should try really hard to ask citi to reverse this conversion...thanks for any advice!

Re: Citi Dividend World Master Card...need help!

Anonymous — Sat, 24 Jul 2010 00:51:37 GMT

bump..waiting response

Re: Citi Dividend World Master Card...need help!

Ron1 — Sat, 24 Jul 2010 01:34:08 GMT

No , they don't report CL. and they only report the balance.

Ron.

Re: Citi Dividend World Master Card...need help!

fused — Sat, 24 Jul 2010 02:14:51 GMT

@Ron1 wrote:

No , they don't report CL. and they only report the balance.

Ron.

I haven't heard that. Do you have the new CITI card? Has it updated on your reports.

Re: Citi Dividend World Master Card...need help!

vanillabean — Sat, 24 Jul 2010 02:36:52 GMT

@fused wrote:

I haven't heard that. Do you have the new CITI card? Has it updated on your reports.

Less than a year ago, DW got a Citi Platinum AAdvantage MC card, which doesn't report the CL

Re: Citi Dividend World Master Card...need help!

fused — Sat, 24 Jul 2010 02:43:19 GMT

@Anonymous-own-fico wrote:

@fused wrote:

I haven't heard that. Do you have the new CITI card? Has it updated on your reports.

Less than a year ago, DW got a Citi Platinum AAdvantage MC card, which doesn't report the CL

Ron is correct, I just pulled my reports and it is confirmed. The new CITI Dividend World MC card does not report a CL or a highest balance. Does your wife's CITI card report a high balance in lieu of a CL? If there is no CL or high balance reporting, the card will NOT factor in FICO util calculations.

Re: Citi Dividend World Master Card...need help!

vanillabean — Sat, 24 Jul 2010 02:59:15 GMT

@fused wrote:

Ron is correct, I just pulled my reports and it is confirmed. The new CITI Dividend World MC card does not report a CL or a highest balance. Does your wife's CITI card report a high balance in lieu of a CL? If there is no CL or high balance reporting, the card will NOT factor in FICO util calculations.

No, her Citi card does not report its high balance either, to any CRA.

Re: Citi Dividend World Master Card...need help!

fused — Sat, 24 Jul 2010 17:19:43 GMT

For the life of me, I cannot figure out why CITI and others are doing this. How do they benefit from all of this? I still haven't figured it out.

Re: Citi Dividend World Master Card...need help!

moonman — Sat, 24 Jul 2010 22:37:40 GMT

I believe for the higher merchant fees

Re: Citi Dividend World Master Card...need help!

fused — Sun, 25 Jul 2010 16:59:37 GMT

How does reporting tie into merchant fees?

Re: Citi Dividend World Master Card...need help!

Anonymous — Sun, 25 Jul 2010 17:02:09 GMT

@fused wrote:
For the life of me, I cannot figure out why CITI and others are doing this. How do they benefit from all of this? I still haven't figured it out.

Because it allows them to report less in unsecured money for accounting purposes therefore they seem less risky.

Re: Citi Dividend World Master Card...need help!

fused — Sun, 25 Jul 2010 17:55:13 GMT

@Anonymous wrote:

@fused wrote:

For the life of me, I cannot figure out why CITI and others are doing this. How do they benefit from all of this? I still haven't figured it out.

Because it allows them to report less in unsecured money for accounting purposes therefore they seem less risky.

I still don't see the connection. Just because banks and CCCs don't report CLs to the CRAs, its not as though the CLs on CCs have vanished into thin air.

Re: Citi Dividend World Master Card...need help!

athensguy — Sun, 25 Jul 2010 17:56:46 GMT

@fused wrote:
How does reporting tie into merchant fees?

A properly reported World MC or Visa Sig reports this way. They don't care about the reporting part, but they get higher fees when you swipe your World MC than when you swipe your regular MC.

Re: Citi Dividend World Master Card...need help!

fused — Sun, 25 Jul 2010 18:06:09 GMT

@athensguy wrote:

@fused wrote:

How does reporting tie into merchant fees?

A properly reported World MC or Visa Sig reports this way. They don't care about the reporting part, but they get higher fees when you swipe your World MC than when you swipe your regular MC.

I know how signature cards report, but I just found out that World MCs report the same way.

I knew the banks and CCCs were up to something. Do you know the difference in fees between World MC/Sig cards and regular MCs?

Re: Citi Dividend World Master Card...need help!

athensguy — Sun, 25 Jul 2010 18:30:49 GMT

@fused wrote:

@athensguy wrote:
@fused wrote:
How does reporting tie into merchant fees?
A properly reported World MC or Visa Sig reports this way. They don't care about the reporting part, but they get higher fees when you swipe your World MC than when you swipe your regular MC.

I know how signature cards report, but I just found out that World MCs report the same way.

I knew the banks and CCCs were up to something. Do you know the difference in fees between World MC/Sig cards and regular MCs?

The fees depend on your merchant agreement, but the fees for a World/Signature card can be 50% more than for a regular card.
A regular example might be:
$0.25 swipe fee +
1% for plain MC
OR 1.7% for reward MC
OR 2.4% for World MC

Re: Citi Dividend World Master Card...need help!

haulingthescoreup — Mon, 26 Jul 2010 03:02:24 GMT

I knew that they got more for usage on a World MC or Visa Sig, but I still don't see how the banks benefit from not reporting the CL's.

Unless, as suggested above, it makes their books look better, as in less apparent risk. But then what's to stop them from no longer reporting CL's on any other card?

Re: Citi Dividend World Master Card...need help!

vanillabean — Mon, 26 Jul 2010 03:19:11 GMT

@haulingthescoreup wrote:

I knew that they got more for usage on a World MC or Visa Sig, but I still don't see how the banks benefit from not reporting the CL's.

I've read somewhere that it gives the CCC a competitive edge. People, because they don't know, might think the customers' CLs are higher than they are.

Re: Citi Dividend World Master Card...need help!

Anonymous — Mon, 26 Jul 2010 03:25:06 GMT

thankfully....after talking to 3 different account managers (not CSR) they were able to de-convert my card back to the normal dividend but the sad thing is the 2% cash at groceries, gas is gone...it's 1% across the board..but I'm still happy since I get to keep my CL. Thanks for the help!

Re: Citi Dividend World Master Card...need help!

BamCat — Tue, 27 Jul 2010 17:40:06 GMT

I got the letter stating that my Citi Dividend Platinum Select was being converted to a World MC, but initially didn't think much of it. This card (which I've had since 1991) used to be an AT&T Universal card, and it's gone through several name changes since then. It wasn't until I read this thread and others like it that I realized the implications to my FICO score.

Citi had already assigned me a new number (I saw this when checking my account online), but I didn't have the new card yet. I called them, and the woman I spoke to was very helpful. She reinstated my old account number and told me to shred my World card when it arrived. I later got a letter confirming that my card is still a Dividend Platinum Select. So I just wanted to thank those on here who educated me.

Re: Citi Dividend World Master Card...need help!

Anonymous — Wed, 28 Jul 2010 06:48:36 GMT

@BamCat wrote:
I got the letter stating that my Citi Dividend Platinum Select was being converted to a World MC, but initially didn't think much of it. This card (which I've had since 1991) used to be an AT&T Universal card, and it's gone through several name changes since then. It wasn't until I read this thread and others like it that I realized the implications to my FICO score.

Citi had already assigned me a new number (I saw this when checking my account online), but I didn't have the new card yet. I called them, and the woman I spoke to was very helpful. She reinstated my old account number and told me to shred my World card when it arrived. I later got a letter confirming that my card is still a Dividend Platinum Select. So I just wanted to thank those on here who educated me.
How long does it take for everything to go back to normal after you received the letter? I am in the same situation but my online banking is still showing 2 accounts.