Author Topic: Citi double cash back - so you need to carry a balance?  (Read 7677 times)

PaulPool89

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Citi double cash back - so you need to carry a balance?
« on: March 22, 2016, 03:50:37 PM »
I have read many posts around different websites regarding the Citi double cash rewards credit card. I understand you get 1% when buying, and 1% when paying your balance.

But I've seen people talk about this payment tracker feature the card uses. Someone mentioned the possibility of losing out on the reward of making early payment to pay off your balance in full.
I have read on another website that Citi can have up to 5 days delay before posting to payment tracker, or something like that. But I can't find an answer for my question.

My question is this:

Is there any drawback, penalty or restriction on collecting the 1% Cash Back Rewards by paying your balance on this double cash back credit card if you pay off your balance in full before it accrues interest.

I currently use the CapitalOne 1.5% cash back credit card and pay off my balance to avoid paying interest. If I can do the same with this double cash back, I'm interested. My radar went up however at the mention of this payment tracker, seems like a way to get you into carrying a balance and paying interest.

Do anyone use this card and pay off their balance each month? Do you still receive your 2nd reward of 1% cash back when paying off your balance in full?

Thanks for reading.

Bracken_Joy

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Re: Citi double cash back - so you need to carry a balance?
« Reply #1 on: March 22, 2016, 03:54:15 PM »
I can't speak to the Citi card, but I have found this to be true with other rewards cards. I have had both Chase Amazon and American Express Blue Preferred miss rewards because I didn't let it go to statement. Each time, they've fixed it when I brought it up to them. I just wait until the billing date now for my autopayment.

Vanguards and Lentils

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Re: Citi double cash back - so you need to carry a balance?
« Reply #2 on: March 22, 2016, 04:06:18 PM »
You can get the full reward while paying your balance in full each month (I do this).

The second percent comes one cycle after the first percent, but it definitely comes.

neo von retorch

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Re: Citi double cash back - so you need to carry a balance?
« Reply #3 on: March 22, 2016, 04:24:01 PM »
Just chiming in for extra reassurance. You can pay it off in full even before your statement comes if you want. The only thing that might undo rewards is a purchase is refunded.

marcela

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Re: Citi double cash back - so you need to carry a balance?
« Reply #4 on: March 22, 2016, 06:38:40 PM »
I have this card and get the full 2% back since I pay off my balance every month. The payment tracker is more for people who don't pay their balance and need the visual.

Ankenystache

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Re: Citi double cash back - so you need to carry a balance?
« Reply #5 on: March 22, 2016, 06:42:19 PM »
Also a user here.. I never carry a balance and always pay in full each month... you technically could pay extra and have a positive(credit) account balance and you wouldn't get the percent on that. I haven't met anyone yet that would give them a no interest loan.

frugaliknowit

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Re: Citi double cash back - so you need to carry a balance?
« Reply #6 on: March 23, 2016, 08:06:38 AM »
No worries, they detail it all in your statement.  The only downside is the second 1% is delayed a bit. 

PaulPool89

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Re: Citi double cash back - so you need to carry a balance?
« Reply #7 on: March 24, 2016, 12:47:04 PM »
Okay, so it doesn't matter what time of the month I make payments and bring the balance down to zero, even if the balance is already 0, I put 500 on the card and pay it off the same day, the other 1% cash back will be applied even if I never pay a single cent of interest to them. Just with some delay.

ooeei

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Re: Citi double cash back - so you need to carry a balance?
« Reply #8 on: March 24, 2016, 12:59:24 PM »
Okay, so it doesn't matter what time of the month I make payments and bring the balance down to zero, even if the balance is already 0, I put 500 on the card and pay it off the same day, the other 1% cash back will be applied even if I never pay a single cent of interest to them. Just with some delay.

Letting it go to statement isn't the same as carrying a balance.  I'm not sure on the specifics, but you may run into problems paying it off the day of.  Generally here is the schedule for credit cards:

Mar 1-31: Make purchases
Apr 1: Statement is issued for March purchases
May 1: Payment is due for Apr 1 Statement
May 2: Payment is late and interest is now applied to the balance.

As long as you pay off your purchase between April 1 and May 1, you're good to go.  I set my autopay somewhere around Apr 25 generally, that way if something goes wrong I have some time to fix it.

neo von retorch

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Re: Citi double cash back - so you need to carry a balance?
« Reply #9 on: March 24, 2016, 01:10:51 PM »
I wanted to confirm that my statement was accurate, so I found an example. Last July...

* Statement 7/10/2015
Balance $698.84
Points $32.26
7/13 Made payment $698.84
7/30 Bought car and put $982 on credit card
8/5 Made extra payment of $1300

* Statement 8/10/2015
Balance $807.96
New Points $41.07 (for $2107.96 in purchases, $1998.84 in payments)
Points $73.33

Plus, for the teeny tiny difference it makes, I redeem points for a deposit in my bank account, never as a statement credit, since you don't earn points on credits :)

Vanguards and Lentils

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Re: Citi double cash back - so you need to carry a balance?
« Reply #10 on: March 24, 2016, 01:19:14 PM »
Plus, for the teeny tiny difference it makes, I redeem points for a deposit in my bank account, never as a statement credit, since you don't earn points on credits :)

It's actually a 1.99% back card if one uses statement credits. Way to stick it to the big banks!

neo von retorch

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Re: Citi double cash back - so you need to carry a balance?
« Reply #11 on: March 24, 2016, 01:53:30 PM »
Exactly!

They reward us in equal measure, like the savings account that gives you 1% interest PLUS 10% bonus applied to your interest!! (which just means you are earning 1.1% interest...)

CmFtns

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Re: Citi double cash back - so you need to carry a balance?
« Reply #12 on: March 24, 2016, 01:59:27 PM »
I can confirm as well... you get 1% when you buy and 1% on the statement after you pay off any balance on the card regardless of if it is carried over or paid in full each month.

And NEVER EVER use rewards as a statement credit you'll miss out on REWARDZZZZZ gotta get your full 2%

maco

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Re: Citi double cash back - so you need to carry a balance?
« Reply #13 on: March 24, 2016, 03:52:28 PM »
Okay, so it doesn't matter what time of the month I make payments and bring the balance down to zero, even if the balance is already 0, I put 500 on the card and pay it off the same day, the other 1% cash back will be applied even if I never pay a single cent of interest to them. Just with some delay.

Letting it go to statement isn't the same as carrying a balance.  I'm not sure on the specifics, but you may run into problems paying it off the day of.  Generally here is the schedule for credit cards:

Mar 1-31: Make purchases
Apr 1: Statement is issued for March purchases
May 1: Payment is due for Apr 1 Statement
May 2: Payment is late and interest is now applied to the balance.

As long as you pay off your purchase between April 1 and May 1, you're good to go.  I set my autopay somewhere around Apr 25 generally, that way if something goes wrong I have some time to fix it.
In the US I think 20 days (24?) is how much time they're required to give, so while there probably are some banks with longer-than-required payment periods, April ~20 is usually when the stuff bought in March would come due.

And yeah, OP, the "tracker" is to keep people who carry a balance from going "but I paid $300 last month!" and then Citi having to explain to them "and $50 of that was interest you carried over from the past. You don't get points for paying your interest!"
« Last Edit: March 24, 2016, 03:54:04 PM by maco »