This program can actually hurt your credit score, upon completion they will lower your credit line with the same amount that they gave you back (20%), and also the money recieved is actually reportable as income...
When you say it can actually hurt your credit score, do you mean because of the lowered credit line? A lower credit line only hurts your credit score if you carry balances on other cards and have to worry about utilization percentage. Is that the harm...or is there something else? Do they make any sort of indication on your credit report?
If they are going to report the 20% back as income.
You will be getting a 1099 form at the end of the year and
you will have to pay all the taxes on that money.
Just wanted to mention that the original post for this thread is from June, 2008. This Citi program may or may not be offered at this time.
This program can actually hurt your credit score, upon completion they will lower your credit line with the same amount that they gave you back (20%),
If what you state is correct only one dollar in five that you reduce your balance by will be deducted from the CL. Assuming everything else remains constant you will be improving your UTIL and not degrading it. This will help FICO. It is also a case where "dollar sense" has to prevail over "FICO sense". However, whatever participating in this program means for the long term status of your account with Citi is anyone's guess. I'm sure it will not be viewed as a positive.