Spending only in reward categories

[CreditCuriosity]

Best friend has a 30k Citi DC.  Granted approx 300k income and 840+ credit scores and everything else good.

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@kdm31091 wrote:

Well, I don't know of many people with a high limit on the DC, so I wouldn't count on it. Lol I think the highest I've seen is maybe $6k, which is respectable but most have gotten much less.

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[kdm31091]

Well, I would view that as a special circumstance, in all fairness that's not a typical income. But that's still awesome :-)

[CreditCuriosity]

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@kdm31091 wrote:

Well, I would view that as a special circumstance, in all fairness that's not a typical income. But that's still awesome :-)

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Agree not typical for most ...  They do hand out those limits is all I am stating though if the stars align and have a long relationship with them already.  He was going to recon for 60k, but told him to waste the HP on the Ritz instead and he got 34k on that

[Anonymous]

I'd be just fine with a 5K limit on a DC

[kdm31091]

It seems even 5K is a stretch though. Most people with a DC seem to have less than that. I see a lot of 1-3K. To me, that's not enough for what is supposed to be a general spend card.

Hopefully they will give out larger limits later on in the card's life or something.

[Anonymous]

People keep asking why the card is so advertised if it is low profit. 

I think you need to make a clear difference between low profit and low margin. 

Something can be low margin but still extremely profitable if volume is high. Walmart is a low margin retailer but it makes a hefty profit because they sell a lot of stuff. 

Now, you don't have to be a genius to realize that a 2% card is gonna be low margin. However, the product can theoretically be profitable if you get enough people to sign up. It seems that this is what citi is doing. We'll see if it works.

[Anonymous]

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@kdm31091 wrote:

It seems even 5K is a stretch though. Most people with a DC seem to have less than that. I see a lot of 1-3K. To me, that's not enough for what is supposed to be a general spend card.

Hopefully they will give out larger limits later on in the card's life or something.

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My experience with Citi DC wasn't bad.  Initial line of credit was 6k. The day I got the card I contacted citi, requested an increase and they bumped it up to 15k.  Apr is 12.99% not that I'll carry a balance on this card.  

[Anonymous]

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@Anonymous wrote:

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@kdm31091 wrote:

Well, I don't know of many people with a high limit on the DC, so I wouldn't count on it. Lol I think the highest I've seen is maybe $6k, which is respectable but most have gotten much less.

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I have a 10k limit on mine, but it was actually a PC from Diamond Preferred with a subsequent hard pull CLI from 6900 to 10000. In retrospect I probably would have saved the hard pull, but I'm glad I have a nice even and large number.

The CLI was back in October though, so I don't know if I'd get the same generosity today. 

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I was instantly approved for my Double Cash card for $6,800 in December. That's pretty recent right? I didn't even consider that generous at the time, but I took it anyway.

[lg8302ch]

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@kdm31091 wrote:

I disagree that the examples cited are "not something CCC's care about", because sometimes they do. Typically, buying (some) store gift cards is fine, because they aren't cash equivilants. I don't think issuers would say they "don't care" if you buy a ton of Amex/Visa/MC gift cards to meet bonus spend or to earn extra rewards. But it's not really within the scope of this form to discuss the ins and outs of it, so I'm leaving it at that. Bonus churning has nothing to do with the question at hand, so I'm not even going to discuss that, either.

With regard to Citi saying the card is low profit, I determined such a thing from a thread awhile back where a poster mentioned talking to Citi's EO because they'd gotten a low limit on DC. The rep responded with basically what I said -- low profit means people get low limits/bad APRs. It stands to reason the card cannot possibly be a good profit for them. Lots of ads don't mean it will be around forever, I remember seeing commercials for the Forward and it didn't stick around. Also, I had a Double Cash very briefly before cancelling due to the $1K limit and 22% APR. My conversation with the EO was pretty similar too and basically confirmed they do not give out large limits on the card, period. You can infer what you want, but the obvious reasoning seems to be they aren't making out well profit wise with it. There is no official source of Citi saying it, but it makes sense.

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If your theory is true about the Citi DC I wonder why Citi has not yet CLD mine?  17K limit and 13,24% APR. That does not match the theory IMO.

edit: But I got to be fair and mention that I got it through PC from my Citi AA Platinum Select card

[Anonymous]

Looking at credit card lineups, to me the DC looks like Citi is making a play to make some lineup changes and try to get some market share. I do have access to some Citi exec level people at my 2nd job, and it seems to be a theme for them. I would expect in the next 24-36 months to see a bit of a shake up in Citi's card lineup. Scroll through some of the nice longer posts in this and other forums, and see how many people have multiple Chase cards. Then count the number with multiple Amex cards, capital one cards, and then count the folks carrying multiple Citi cards......... I see the DC as maybe not quite a loss leader, but a way to get into people's wallets. I guess when the second job fires up again in 6 weeks or so, I will have to put a few guys' feet to the fire And maybe use a few of the chase guys to keep the fire going.