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Citi DC vs. Chase FU... again...

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Regular Contributor

Citi DC vs. Chase FU... again...

I'm sure this discussion appears every week or so, might as well keep it up. LOL.

 

After I close on my refi next week and the dust settles, I'm thinking of snagging either the Citi DC or CFU so I can get the inquiry and score ding out of the way, and then I can freeze my reports and garden for a long time.

 

Citi DC advantages:

*  2% cash back forever

*  SP CLIs available

*  Virtual card numbers for online orders

*  Gets my foot in the door with Citi, a lender I don't have anything with now

 

Citi DC disadvantages:

*  No 0% on purchases, only BTs

*  No decent SUB at present (just 18 months BT)

*  Many other benefits being nerfed

*  Often a lower SL given, though SP CLIs offset this over time

 

Chase Freedom Unlimited advantages:

*  3% cash back for a year (on up to $20K, which I'll never reach)

*  0% APR on purchases as well as balance transfers for a year

*  UR points can be transferred to other Chase cards like CSP/CSR

*  Chase often gives offers to cardholders to encourage usage (at least on the Amazon card I have now)

 

CFU disadvantages:

*  HP CLIs only, though the SL will probably be more than enough

*  Only 1.5% after the 1st year (compared to 2% for DC)

*  5/24 (not an issue for me since I'm at 1/24 now)

 

My original thoughts were to go with the DC for the higher cash back, but now in thinking more about it, I'm liking the idea of the CFU better, between the 3% and 0% on purchases for the first year, I could knock out some things I need like a window repair and then have a year to pay it off, and get 3% cash back on it to boot.  And though I'm broke now and not doing any traveling, that won't be the case forever and when I am ready to travel in a couple years, I could get a CSP, get the SUB and then take my CFU points and cash them in on a nice vacation.

 

Any other thoughts?

 

Gardening starting 8/1/19
Goal: 0 Inquiries and diamond spade
July: EX 813, TU 821. 3 CCs, 1 mortgage, 5 inquiries.
August: EX 789 767, TU 785. The roller coaster ride has begun.
Message 1 of 20
19 REPLIES 19
Senior Contributor

Re: Citi DC vs. Chase FU... again...


@DivorcedAndBroke wrote:

Citi DC advantages:

*  Gets my foot in the door with Citi, a lender I don't have anything with now But is there anything you particularly want with Citi? The AA cards are okay and Prestige still gives 4th Night Free and good rewards on travel, but apart from those the lineup is pretty mediocre.

 

Chase Freedom Unlimited advantages:

*  UR points can be transferred to other Chase cards like CSP/CSR And with CSR, CFU gives 2.25%+ towards travel, making a 2% card rather mediocre...though DC does allow more efficient cash (non-travel) redemptions.

*  Chase often gives offers to cardholders to encourage usage (at least on the Amazon card I have now) Not to me, though I don't have the Amazon card!


 

Most spend: CSR, CFU, BBP
Rewards/AAoA ballast: CF, Discover, Costco, ED, Arrival
Perks: Schwab Platinum, IHG49, Hyatt75, Brilliant, Delta Platinum
Potential closures/downgrades: Savor, BCP, Double Cash
Message 2 of 20
Contributor

Re: Citi DC vs. Chase FU... again...

Individually...the DC is better, the FU is better if you have multiple Chase cards.

Discover It - 19.1K
Citi Double Cash - 16K
AMEX BCP - 35K
Elan Financial - 24.2K
Uber - 25K
Amazon Prime Visa Sig - 9.6K
Fort Knox Platinum - 2.5K
US Bank Cash+ - 14K
Citi AAdvantage PSWE - 21.5K
Message 3 of 20
New Contributor

Re: Citi DC vs. Chase FU... again...

I like that he said "nerfed" -- is he possibly a gamer like me? Smiley Happy (video games, people..video games!)

When you say Chase only does HP CLI's does that mean only the ones you (customer) request? Do they do any auto-cli's?

Entering "the garden" in July of 2019...hopefully :/







Message 4 of 20
Senior Contributor

Re: Citi DC vs. Chase FU... again...

Another consideration is that Chase has toyed with the idea of eliminating or nerfing the ability to transfer URs from CF/CFU to the AF cards like CSR. In a customer survey, they put a few variations of the idea forward.

 

To be clear, the survey was quite a while ago and nothing has come of it.

 

But planning card strategies (like getting CFU now and CSR later) that won't come to fruition for several years is not always effective. Cards can change unexpectedly, as can spending habits. Sometimes the best course is to just get something with a nice bonus and then see what happens to the card.

Most spend: CSR, CFU, BBP
Rewards/AAoA ballast: CF, Discover, Costco, ED, Arrival
Perks: Schwab Platinum, IHG49, Hyatt75, Brilliant, Delta Platinum
Potential closures/downgrades: Savor, BCP, Double Cash
Message 5 of 20
Regular Contributor

Re: Citi DC vs. Chase FU... again...


@jwa77 wrote:

I like that he said "nerfed" -- is he possibly a gamer like me? Smiley Happy (video games, people..video games!)

When you say Chase only does HP CLI's does that mean only the ones you (customer) request? Do they do any auto-cli's?


I'm not a gamer beyond Spider Solitaire and the occasional 8-bit 80s arcade game on MAME. Smiley Happy  I got "nerfed" from this forum... it's a popular term here when describing benefits being... well... "nerfed".

 

Chase only does HP CLIs on request.  Auto CLIs are a bit of a rarity with Chase, though they can happen.  They instead give more generous SLs and then you're pretty much stuck with that other than HPs or the rare auto.  Citi gives more conservative SLs but make it easier to grow with SP and auto CLIs.

 

As for making the decision... I wish I had a crystal ball and could see where I am in 2 years... but the CFU is looking like the better choice due to 0% APR on purchases for a year... I can certainly make use of that especially with 3% cash back on top of that in the 1st year.  I wouldn't get that with the DC.  And in 2 years, if (when?) I'm ready to travel, I could get a CSP or CSR and transfer the points.  And if they "nerf" that capability, well, I can still get cash back!

 

Of course the cards themselves could change as well... new cards appear, old ones discontinued, and in 2 years I may go a different route entirely.  But for now... cash back is where it's at, and these two cards are topping my list at the moment, though 0% on purchases on the CFU is leaning me in that direction right now.

 

Gardening starting 8/1/19
Goal: 0 Inquiries and diamond spade
July: EX 813, TU 821. 3 CCs, 1 mortgage, 5 inquiries.
August: EX 789 767, TU 785. The roller coaster ride has begun.
Message 6 of 20
New Contributor

Re: Citi DC vs. Chase FU... again...


@wasCB14 wrote:

Another consideration is that Chase has toyed with the idea of eliminating or nerfing the ability to transfer URs from CF/CFU to the AF cards like CSR. In a customer survey, they put a few variations of the idea forward.

 

To be clear, the survey was quite a while ago and nothing has come of it.

 


ugh! please no! I signed up or the CSP and blew through the spend for the SUB in the first month (had a lot of work travel spend) and then I got the CFU so I could earn 3x for that year I now have to wait before PC'ing to the CSR.  I wonder why they'd remove the ability to transfer points--that's their biggest draw!!

Entering "the garden" in July of 2019...hopefully :/







Message 7 of 20
Mega Contributor

Re: Citi DC vs. Chase FU... again...


@jwa77 wrote:

@wasCB14 wrote:

Another consideration is that Chase has toyed with the idea of eliminating or nerfing the ability to transfer URs from CF/CFU to the AF cards like CSR. In a customer survey, they put a few variations of the idea forward.

 

To be clear, the survey was quite a while ago and nothing has come of it.

 


ugh! please no! I signed up or the CSP and blew through the spend for the SUB in the first month (had a lot of work travel spend) and then I got the CFU so I could earn 3x for that year I now have to wait before PC'ing to the CSR.  I wonder why they'd remove the ability to transfer points--that's their biggest draw!!


They would remove them due to cost presumably.    The CSR would still be a reasonable standalone card, 3x dining and travel, 1x everything else, with transfer to partners, 1.5cpp through portal etc.

 

I don't know just how much the "average" CSR user gets from Freedom for example.   If you max out every quarter, you get 30K UR each year, which does sound a lot (as it is $450 travel through the portal, equal to the AF!) but how many people do that each and every quarter.

 

So yes, transferring from other UR cards is a big benefit, but it's the biggest benefits that can get nerfed!

Message 8 of 20
Senior Contributor

Re: Citi DC vs. Chase FU... again...


@solway wrote:

Individually...the DC is better, the FU is better if you have multiple Chase cards.


+1

 

I would agree. I had both, I just product changed the FU To The 5% Freedom for 5% Quarter on Gas.

Chase Usually, not always, but in my Case, started My out with very High SL's, even With Citi SP's,

My CL's are still higher on The Chase Cards with no increases. YMMV

Message 9 of 20
Senior Contributor

Re: Citi DC vs. Chase FU... again...


@longtimelurker wrote:

They would remove them due to cost presumably.    The CSR would still be a reasonable standalone card, 3x dining and travel, 1x everything else, with transfer to partners, 1.5cpp through portal etc.

 

I don't know just how much the "average" CSR user gets from Freedom for example.   If you max out every quarter, you get 30K UR each year, which does sound a lot (as it is $450 travel through the portal, equal to the AF!) but how many people do that each and every quarter.

 

So yes, transferring from other UR cards is a big benefit, but it's the biggest benefits that can get nerfed!


One of the proposed options had been a 1/3 haircut on CF/CFU points during the transfer...so CFU would be equal to CSR for off-category stuff, and CF would earn 3.33x on rotating categories. Not quite standalone, but close.

 


@M_Smart007 wrote:

@solway wrote:

Individually...the DC is better, the FU is better if you have multiple Chase cards.


+1

 

I would agree. I had both, I just product changed the FU To The 5% Freedom for 5% Quarter on Gas.

Chase Usually, not always, but in my Case, started My out with very High SL's, even With Citi SP's,

My CL's are still higher on The Chase Cards with no increases. YMMV


Of course, DC is not the only 2% card. After the nerf, it will be one of the worst 2% cards. And some cards give more than 2% and/or come with nice bonuses. I just keep mine because I have stuff under extended warranty on it.

 

CFU may not be the best option, but that doesn't mean DC is the best alternative. There are far more options to consider.

Most spend: CSR, CFU, BBP
Rewards/AAoA ballast: CF, Discover, Costco, ED, Arrival
Perks: Schwab Platinum, IHG49, Hyatt75, Brilliant, Delta Platinum
Potential closures/downgrades: Savor, BCP, Double Cash
Message 10 of 20
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