I’ve been intrigued by the thought that Citi might be becoming a good credit card company. At first, I had some theories, which I stand by. (Read More Here). Today, after sticking my neck on the line, I got some reassuring evidence that the new Citibank is a good credit card company.
Today’s evidence arrived in the mail, in the form of a mail offer for my wife. Unlike similar offers which have been infrequently appearing, this card provided a 0% APR for a full year on purchases and balance transfers. This in itself is surprising, as the few offers that have hit our mailbox lately have only offered 0% rates for 6 months. (The offer was the Citi Platinum Select Card, which you can learn more about here.)
Anyway, I started reading the terms and conditions and quickly realized that they were FAIR. Not only that, they had a clear statement that explains when and why they can raise interest rates. And guess what? Its the most straightforward credit card deal I’ve ever seen. Here’s a sampling of what they wrote under the heading, “When can we change the rates, fee, and terms of you agreement”:
“We will not voluntarily increase your interest rate and fees…UNTIL you card EXPIRES.”
This may not seem like much, but it is the first time I have ever seen this. They are legally binding themselves to the rate they give you for about two years, which is when a credit card typically expires. No other company is doing this. And this is exactly what the government wants are credit card companies to be doing.
Now, I’ve theorized that Citi is behaving well because the Government owns them. Well, for those of us who owned shares of their stock, that part kind of sucks. But for credit card holders, this is great news. No more waiting for the dreaded rate increase notice in the mail. No more calls to your accountant to figure out if you credit card company is going to raise your rates.
Citi is engaging in fair and ethical credit card practices. This is great news for consumers and potentially a sign of things to come with some of the other credit card companies. For now, however, if you want piece of mind, consider getting yourself a Citi balance transfer credit card at Smart Balance Transfers, if you want to help us stay in business, or go somewhere else (even though they didn’t share their helpful insights with you).
Guilt trip aside, I want to do my part to alert consumers to credit card deals that will help them through this crisis. And I’m very convinced that Citi is the company you want in your wallet.
Author’s Note: If you have any evidence that supports or conflicts with my thesis, please share it with our visitors. I will continue to monitor these offers and will alert readers if something changes.
