Citi CashReturns MasterCard - Credit Card Deal of the Year

Contributed by mm | September 13, 2007 4:08 AM PST

Nowadays, given the developing credit crunch in the financial market, card issuers are slashing rewards and hiking rates, making it much harder for prudent spenders to get rewarded from card usage. Therefore, good credit card deals are few and far between these days, forcing us to settle for 1% or 1.5% cashback, or occasionally 5% rewards on grocery or gas purchases.

In this regard, Citi CashReturns MasterCard, Citibank's newest addition to its credit card offerings, is a true godsend for people who want to get more rewards from good spending habits.

Citi Cash Returns MasterCard's killer feature: 5% cashback on every credit card purchase for the first 3 months (and 1% thereafter).

Thought the introductory period of 3 months is too short? Think again. If you charge $3,000 to a card normally, you can get $150 in cash rebate every month, or $450 in the 3 months' period. And if you happen to have a big purchase in mind for the coming month, 5% is yours without having to negotiate with any salesperson. This can be 5% off every vacation, every furniture or appliance purchase, every Christmas gift, or even every medical appointment (if you opt for paying your physician upfront and claiming with insurers later).

The beauty of the reward program is there is absolutely no limit of the amount you can earn, allowing you to effectively shaving 5% of most of your monthly expenditure. And, if you have a family, applying another Citi CashReturns card under your spouse's name after 3 months, and you can be really proud of yourself for cutting 5% of your half-year budget for a few minutes' of work on the computer.

Of course, this offer can only be lucrative for you if you pay off your balance every month. Otherwise, your cashback returns will be eroded by the financial charges you will incur down the road.

Feel it is a great deal? You may apply today, or read PFBlog's full review of Citi Cash Returns MasterCard for a more informed decision.

This Post Has Received 9 Comments. Share Your Opinions Too.

Money Blue Book Commented on September 13, 2007

I wonder if there is a way to "purchase" a phantom object such paying yourself through paypal to incur your maximum monthly credit limit to take advantage of the 5% offer.

Would be quite interesting to find out.

-Raymond

Harry Commented on September 13, 2007

Just applied the card you recommended.
Hope it helps both you and me. :)
Harry

Wayne Commented on September 14, 2007

I do not see why would I get credit card. I would think twice before applying.
The fact that you borrowing money you decrease your paying power. Most of the credit cards charge you high interest up to 21% regardless of you credit score. Take pencil and calculator and add all the fees and processing charges.
If you disagree take a look at financial statements.

www.efamilyfinance.com

Ben Commented on September 15, 2007

Have this card - credit limit was lower than any other card I have ever received. I've been playing the rewards game/0% APR game for some time - high FICO score - used to getting a high credit limit. Called & requested an increased line (first time ever) - denied (another first). Anyone have this experience?

2million Commented on September 17, 2007

The paypal idea is not a bad one. If you set yourself up with a paypal business account - you roughly pay between 1.9-2.9% to paypal on the money received so you could make almost a 2-2.5% profit on each round trip transaction once you factor in the other fees involved.

Fred333 Commented on September 21, 2007

That is a very good deal. I just don't use my cards that often to take full advantage of the deal.

Seth Commented on October 9, 2007

I like the chase cash rewards card. It's 3% cash back in three "categories" of spending, 1% on everything else, and the real kicker is that once you earn $200 they give you an extra $50, which is like an extra 25% on your money.

GS Commented on December 19, 2007

I think your decimal is in the wrong place... charging $3000 would result in $15 (not "$150") per month, or $45 (not "$450") over the 3 months' period. Still a nice return though.

MM Commented on December 20, 2007

GS, I can confirm my original calculation is correct. 1% of $3000 is $30, so 5% is $150, right?