topic Re: Citi CC softing me in Credit Cards

Citi CC softing me

Anonymous — Fri, 16 Mar 2012 15:08:12 GMT

I just looked at my EQ and notice that Citi has softed me and that's why I received the pre-qualify mailer three weeks ago. I went to the site and it said I'm preapproved. The offer is for a Platinum Select, but that's not what I want. I want the Citi AAvantage Card for the promotional miles giveaway. Is that card in the same category as the Platinum select (credit requirements = same/similiar), or is it much harder to get (higher credit score requirements). If the AAdvantage card has a higher criteria, could I apply, then if I get accepted, immediately then ask for a PC. Will that work?

My scores are TU 655, EQ 665, EQ (Idk for sure), but was told by an Amex rep, it was a tad bit over 700 (Amex score...whatever that is, if it means anything). Baddies are about 2 year old (lates mostly)

Inquiries that do not impact your credit rating

These inquires include requests from employers, companies making promotional offers and your own requests to check your credit. These inquiries are only viewable by you.

Company Information	Date of Inquiry
ND-AUTO-OWNERS INSURANCE	07/21/11
PRM-CAPITAL ONE	02/10/12, 01/13/12, 12/08/11, 11/10/11, 08/11/11, 06/09/11, 05/12/11
PRM-CITI CARDS CBSD	01/13/12

PRM ONL-GEMB/LENS CRAFTERS	07/28/11
PRM ONL-GECRB/SAM'S CLUB	11/05/11

Re: Citi CC softing me

trumpet-205 — Fri, 16 Mar 2012 16:08:11 GMT

First of, preapproval means nothing. I repeat nothing. It does not guarantee approval.

Second AAdvantage is a much harder card to get, with minimum credit line of $2K. If Citi cannot issue you at least $2K of credit you will be denied. I believer lenders prohibit PC within the first 12 months because of CARD Act (no rate changing in the first 12 months).

Re: Citi CC softing me

Anonymous — Fri, 16 Mar 2012 16:15:22 GMT

@trumpet-205 wrote:
First of, preapproval means nothing. I repeat nothing. It does not guarantee approval.

Second AAdvantage is a much harder card to get, with minimum credit line of $2K. If Citi cannot issue you at least $2K of credit you will be denied. I believer lenders prohibit PC within the first 12 months because of CARD Act (no rate changing in the first 12 months).

I believe! Only thing is my sister got approved for the AAdvantage card three months ago with a 650 EQ with a 5k CL.It was a shot in the dark, but then again, she have no baddies. Just wondering.

Re: Citi CC softing me

Anonymous — Fri, 16 Mar 2012 16:16:43 GMT

BE CAREFUL!

Citi is sending 1099's on customers who accepts their miles cards and making them pay taxes on the benefit at ridiculous rates!!!

Re: Citi CC softing me

Anonymous — Fri, 16 Mar 2012 17:11:56 GMT

@Anonymous wrote:
BE CAREFUL!

Citi is sending 1099's on customers who accepts their miles cards and making them pay taxes on the benefit at ridiculous rates!!!

What! Can this be true? This IS not considered income or dividend? I have to do a little research on that.

Re: Citi CC softing me

Anonymous — Fri, 16 Mar 2012 17:44:29 GMT

Citi has a pre approved site?? have the url?

Re: Citi CC softing me

littlesister — Fri, 16 Mar 2012 18:06:31 GMT

They keep sending me pre approvals to. In one day it was for thank you premium, citi simplicity, and diamond preferred.

Re: Citi CC softing me

Anonymous — Fri, 16 Mar 2012 18:44:38 GMT

@Anonymous wrote:
@Anonymous wrote:
BE CAREFUL!

Citi is sending 1099's on customers who accepts their miles cards and making them pay taxes on the benefit at ridiculous rates!!!
What! Can this be true? This IS not considered income or dividend? I have to do a little research on that.

http://www.forbes.com/sites/kellyphillipserb/2012/03/01/citibank-issues-forms-1099-for-frequent-flyer-miles-surprising-customers-and-irs/

Re: Citi CC softing me

aftermath — Fri, 16 Mar 2012 20:43:56 GMT

@Anonymous wrote:
BE CAREFUL!

Citi is sending 1099's on customers who accepts their miles cards and making them pay taxes on the benefit at ridiculous rates!!!

False!

They are only sending 1099's for checking account bonuses. Even then, you don't have to claim them when you file taxes as the IRS themselves said that they wont regulate it.

Please double check your facts and quit scaring people.

Re: Citi CC softing me

aftermath — Fri, 16 Mar 2012 20:46:24 GMT

@Anonymous wrote:
I just looked at my EQ and notice that Citi has softed me and that's why I received the pre-qualify mailer three weeks ago. I went to the site and it said I'm preapproved. The offer is for a Platinum Select, but that's not what I want. I want the Citi AAvantage Card for the promotional miles giveaway. Is that card in the same category as the Platinum select (credit requirements = same/similiar), or is it much harder to get (higher credit score requirements). If the AAdvantage card has a higher criteria, could I apply, then if I get accepted, immediately then ask for a PC. Will that work?

My scores are TU 655, EQ 665, EQ (Idk for sure), but was told by an Amex rep, it was a tad bit over 700 (Amex score...whatever that is, if it means anything). Baddies are about 2 year old (lates mostly)

Inquiries that do not impact your credit rating
These inquires include requests from employers, companies making promotional offers and your own requests to check your credit. These inquiries are only viewable by you.
Company Information Date of Inquiry
ND-AUTO-OWNERS INSURANCE 07/21/11
PRM-CAPITAL ONE 02/10/12, 01/13/12, 12/08/11, 11/10/11, 08/11/11, 06/09/11, 05/12/11
PRM-CITI CARDS CBSD 01/13/12

PRM ONL-GEMB/LENS CRAFTERS 07/28/11
PRM ONL-GECRB/SAM'S CLUB 11/05/11

You only qualify for the signup bonus ONLY if you apply for that card. If you PC another card , it's not an application.

Re: Citi CC softing me

aftermath — Fri, 16 Mar 2012 20:48:32 GMT

@trumpet-205 wrote:
First of, preapproval means nothing. I repeat nothing. It does not guarantee approval.

Second AAdvantage is a much harder card to get, with minimum credit line of $2K. If Citi cannot issue you at least $2K of credit you will be denied. I believer lenders prohibit PC within the first 12 months because of CARD Act (no rate changing in the first 12 months).

Their VISA is a Signature, and their Mastercard is a World. You will need a minimum $5k to be approved.

Re: Citi CC softing me

Anonymous — Fri, 16 Mar 2012 22:59:36 GMT

@aftermath wrote:
@Anonymous wrote:
BE CAREFUL!

Citi is sending 1099's on customers who accepts their miles cards and making them pay taxes on the benefit at ridiculous rates!!!
False!

They are only sending 1099's for checking account bonuses. Even then, you don't have to claim them when you file taxes as the IRS themselves said that they wont regulate it.

Please double check your facts and quit scaring people.

Whoa Whoa Whoa!!! Calm down Aftermath... Do you have any recent literature for the bolded statement??? It appears my most recent attempt to demolish Citi as a company has been thwarted by you... or I made a mistake... or I read it somewhere : http://www.mercurynews.com/travel/ci_20079796. Is it possible you can CAPS LOCK the author of this site to death so we can rest easy All kidding aside...

I hope everyone can sleep easy now

Re: Citi CC softing me

trumpet-205 — Sat, 17 Mar 2012 02:56:12 GMT

Citi will hand out Platinum Visa for CL between $2K to $5K. Anything after $5K is Visa Signature.

To receive a Citi® Platinum Select® / AAdvantage® Visa Signature®, you must meet our applicable criteria bearing on creditworthiness. Your revolving credit limit will be determined by your annual salary and wages, your other annual income and a review of your debt, including the debt listed on your credit report. You will be informed of the amount of your revolving credit limit when you receive your card. Some revolving credit limits may be as low as $2000. Please note that cash advances may be limited to a portion of your revolving credit limit.

Re: Citi CC softing me

AndySoCal — Sat, 17 Mar 2012 04:12:44 GMT

Yes it is true. If I remember what I read Citi is correct in doing so it sounded like but it was still waiting IRS confirmation. There is a difference between miles earned as a result of purchases using the card and miles and bonus miles for apping for thie card.

Re: Citi CC softing me

aftermath — Sat, 17 Mar 2012 07:05:38 GMT

@Anonymous wrote:
@aftermath wrote:
@Anonymous wrote:
BE CAREFUL!

Citi is sending 1099's on customers who accepts their miles cards and making them pay taxes on the benefit at ridiculous rates!!!
False!

They are only sending 1099's for checking account bonuses. Even then, you don't have to claim them when you file taxes as the IRS themselves said that they wont regulate it.

Please double check your facts and quit scaring people.
Whoa Whoa Whoa!!! Calm down Aftermath... Do you have any recent literature for the bolded statement??? It appears my most recent attempt to demolish Citi as a company has been thwarted by you... or I made a mistake... or I read it somewhere : http://www.mercurynews.com/travel/ci_20079796. Is it possible you can CAPS LOCK the author of this site to death so we can rest easy All kidding aside...

I hope everyone can sleep easy now

http://www.latimes.com/business/la-fi-lazarus-20120124,1,261989.column?track=rss&utm_source=dlvr.it&utm_medium=twitter&dlvrit=309400

The bank is sending tax forms to customers who received thousands of airline miles as a reward for opening a checking or savings account.

And there's a good reason for that. In 2002, the IRS issued a policy brief noting that because there are "numerous technical and administrative issues" relating to miles, such as how they're valued and used, the agency "has not pursued a tax enforcement program with respect to promotional benefits such as frequent-flier miles."

"Consistent with prior practice," it said, "the IRS will not assert that any taxpayer has understated his federal tax liability by reason of the receipt or personal use of frequent-flier miles or other in-kind promotional benefits attributable to the taxpayer's business or official travel."

In other words, the tax man won't come after you for undeclared miles.

Re: Citi CC softing me

Anonymous — Sat, 17 Mar 2012 07:21:26 GMT

@trumpet-205 wrote:
First of, preapproval means nothing. I repeat nothing. It does not guarantee approval.

Second AAdvantage is a much harder card to get, with minimum credit line of $2K. If Citi cannot issue you at least $2K of credit you will be denied. I believer lenders prohibit PC within the first 12 months because of CARD Act (no rate changing in the first 12 months).

I was able to PC with BofA to a Cash Rewards card within 5 months of becoming a cardholder.

Re: Citi CC softing me

Anonymous — Sun, 18 Mar 2012 14:59:22 GMT

@aftermath wrote:
http://www.latimes.com/business/la-fi-lazarus-20120124,1,261989.column?track=rss&utm_source=dlvr.it&utm_medium=twitter&dlvrit=309400

The bank is sending tax forms to customers who received thousands of airline miles as a reward for opening a checking or savings account.

And there's a good reason for that. In 2002, the IRS issued a policy brief noting that because there are "numerous technical and administrative issues" relating to miles, such as how they're valued and used, the agency "has not pursued a tax enforcement program with respect to promotional benefits such as frequent-flier miles."

"Consistent with prior practice," it said, "the IRS will not assert that any taxpayer has understated his federal tax liability by reason of the receipt or personal use of frequent-flier miles or other in-kind promotional benefits attributable to the taxpayer's business or official travel."

In other words, the tax man won't come after you for undeclared miles.

This article also states:

"The Internal Revenue Code recognizes rewards as taxable income," she said. "This recognition by the Internal Revenue Code is disclosed to customers prior to their election to participate in the promotion."

"An IRS spokeswoman told me only that the 2002 policy brief "still stands." She declined to comment on how this squares with the prizes-and-awards provision of Form 1099, or what taxpayers should do in light of Citi's reporting their airline miles as income."

"This opens up the notion that all miles are taxable,"

"As I say, this potentially affects millions of people — virtually anyone with airline miles. It'd be nice to know where we all stand. "

Seems like this author needs to be CAPS LOCKED and Red Bolded to death aswell...

I don't know about y'all but I'm getting scared again

Re: Citi CC softing me

aftermath — Mon, 19 Mar 2012 05:54:50 GMT

@Anonymous wrote:
@aftermath wrote:
http://www.latimes.com/business/la-fi-lazarus-20120124,1,261989.column?track=rss&utm_source=dlvr.it&utm_medium=twitter&dlvrit=309400

The bank is sending tax forms to customers who received thousands of airline miles as a reward for opening a checking or savings account.

And there's a good reason for that. In 2002, the IRS issued a policy brief noting that because there are "numerous technical and administrative issues" relating to miles, such as how they're valued and used, the agency "has not pursued a tax enforcement program with respect to promotional benefits such as frequent-flier miles."

"Consistent with prior practice," it said, "the IRS will not assert that any taxpayer has understated his federal tax liability by reason of the receipt or personal use of frequent-flier miles or other in-kind promotional benefits attributable to the taxpayer's business or official travel."

In other words, the tax man won't come after you for undeclared miles.

This article also states:

"The Internal Revenue Code recognizes rewards as taxable income," she said. "This recognition by the Internal Revenue Code is disclosed to customers prior to their election to participate in the promotion."

"An IRS spokeswoman told me only that the 2002 policy brief "still stands." She declined to comment on how this squares with the prizes-and-awards provision of Form 1099, or what taxpayers should do in light of Citi's reporting their airline miles as income."

"This opens up the notion that all miles are taxable,"

"As I say, this potentially affects millions of people — virtually anyone with airline miles. It'd be nice to know where we all stand. "

Seems like this author needs to be CAPS LOCKED and Red Bolded to death aswell...

I don't know about y'all but I'm getting scared again

It doesn't matter what the interviewer or the interviewee says or thinks which is basically all you quoted above. The bottom line is what the IRS says they will or will not pursue:

"Consistent with prior practice," it said, "the IRS will not assert that any taxpayer has understated his federal tax liability by reason of the receipt or personal use of frequent-flier miles or other in-kind promotional benefits attributable to the taxpayer's business or official travel."

Also, the controversy is not really over the 1099's, but how Citibank is mis-classifying these miles to the IRS and on top of that grossly overinflating the value. These are bonuses and not awards or rewards. Nobody entered a contest or were given a prize. These miles were given as a gift by the bank for opening up a checking/savings account with them.

You forget why I opened up this can of worms.

OP wanted to know about the AAdvantage credit card, and you were quick to scare him away by saying that he will receive a 1099.

Citibank is only issueing 1099's for the below statement which you obviously missed above.

"The bank is sending tax forms to customers who received thousands of airline miles as a reward for opening a checking or savings account."

I had the Citi AAdvantage Mastercard 2 years ago and received a 50,000 miles bonus for it. I also currently have the Citi AAdvantage Visa Signature which I applied for last year and received a 75,000 miles bonus for. I have yet to receive any 1099's.

I have also opened up a Citi Checking Account back in 2009 with a 40,000 miles bonus, I did receive a 1099 and did not claim with an attached explanation to the IRS that the valuation of the miles were misrepresented. I have yet to get audited.

Experience speaks louder than any words, especially coming from someone who just reads articles and passes on mis-information.

To the OP, apply for all the Citibank credit card signup bonuses that you want. You will not receive a 1099.

Re: Citi CC softing me

AndySoCal — Tue, 20 Mar 2012 01:35:37 GMT

The link to the article below would seem to contradict the 1099 statement.

http://boardingarea.com/blogs/unroadwarrior/2012/03/14/totally-flawed-newsweek-article-advices-avoiding-airline-miles/

Re: Citi CC softing me

aftermath — Tue, 20 Mar 2012 21:15:53 GMT

@AndySoCal wrote:
The link to the article below would seem to contradict the 1099 statement.

http://boardingarea.com/blogs/unroadwarrior/2012/03/14/totally-flawed-newsweek-article-advices-avoiding-airline-miles/

You hear that teenastie?