CITIBANK IS BACK, BABY!
Citi has done little with its credit card program over the past two years or so, but that’s finally changing. They’ve recently upgraded their ThankYou Points program by adding some new airline transfer partners, and now they’ve introduced a 2% cash back card. It’s 1% when you make a purchase and then another 1% when you pay for it. There is no annual fee.I’ve long said the Fidelity Amex is the one card everybody should have, but assuming this card is all it’s cracked up to be, I’d have to add it to the must-have list. I haven’t applied for this one yet, but I did email to ask if I could convert an existing TYP card to this one, and if so I most certainly will convert.
The fact of this card’s introduction bodes well for credit card enthusiasts. Citi’s been sleeping for a while, but after we’ve seen big moves from two different card products in a short period of time, it’s clear that senior management aims to claim some market share.
Surveying the current marketplace, we have Chase (currently killing it), Amex (losing its edge but still fighting), Chase (recently awakened behemoth), Wells (hard-charging upstart), Bank of America (sleepy behemoth), Barclaycard (hopefully ticked off that they’re losing the USAir card), Synchrony (recently spun off from GE Capital, ready to make a name for itself), Comenity (slowly building itself up), Discover (apparently building a rep for good customer service) and Capital One (above all this petty sign-up bonus stuff). That’s a lot of banks eager to gain market share, plus our central bank is keeping the cost of funds extremely low, plus the market’s pretty saturated and it takes a lot to get the average customer to switch cards.
What does the preceding paragraph mean for you? I’m going to make a prediction: the next 12 months will be tremendous for credit cards. Maybe not for manufactured spending, but for sign-up bonuses, spending bonuses, new products, everything. Maybe I’m wrong, and if so, feel free to come back here in 12 months and gloat. Or if you want, go ahead and get a head start on your gloating in the comments below.
What do you all think? Doom and gloom, or the future’s so bright you gotta wear shades? And who else besides me is getting this card?
The post Citibank launches a new 2% cashback card! appeared first on Personal Finance Digest.
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