Aside from the convenience, more interestingly are the discounts and rebates. Getting money back from your spending, why not? Nothing to lose.
One of the cards I like to use is the Citibank Dividend Visa Card. A few days ago, Citibank circulated a notice that it is making changes to its Citibank Dividend Card. The changes will take effect from 28 Sep 2015.
The footnote to the table further elaborated that the amount of cashback (dividend) is capped at $25 for each of the first three categories (i.e. petrol, grocery and dining). Effectively, that means that any spending on a category above $312.50 will not earn any further cashback. On the positive side, the dividend will no longer expire.
My monthly expenditure on grocery and dining tends to go way above that. Looks like I should start diverting spending to my other credit cards like DBS/POSB and UOB One cards? Citibank Credit is going to lose some of my credit spending.
No minimum spend is required to earn the cashback. But as indicated in above table, the cashback will be much lower if the total spend that month is less than $888. Huat ah!
It's rather difficult to figure out what the impact is for the individual. I wish they could have provided some indications by using my last few months' credit bills to illustrate how it would have differed from the past.
I hear OCBC has also made changes to their card (The annoying OCBC Frank credit card). Azrael was pretty annoyed by the changes to OCBC's. The banks always maintain an escape clause that allow them to make changes anytime. So it's their prerogative. But it is annoying.
Watch your credits!
4 credit cards with great cashbacks and discounts