Question by Bluesea: World dividend citi card will lower your credit score or not ?
World dividend citi card will lower your credit score or not ?
anybody has received world dividend citi card?
I have read many bab things about this credit card. This one is a no-preset spending limit. So it will affect your credit score a lot. Somebody says it will lower your credit score.
I am using the card because I love the cash rebate (2% for gas station, groceries, drugstore … and 1 % other purchases). I dont know what should I do? Cancel and apply a different card or not ? any suggestion please?
If I apply a new card, which card will you reccomend?
I prefer cash rebate only.
Please dont recommend me american express cash card or discover more.
If my current balance is 1000$ , then I pay 950$ only before due date. There is 50$ left in my balance.
So if my credit card company will charge interest , will it charge on 1000$ or on 50$ ?
Answer by echo
The reason the card would lower your scores is because it doesn’t report a credit limit.
Your high balance is what the scoring models use as your credit limit.
How you use the card is what can either help you or hurt you.
For example of how it can hurt:
If your normal use of the card is up to 1k a month, the 1k would be your high balance and it would be considered your credit limit by the scoring models.
Because your normal use is up to 1k a month, it would look like you are using up to 100% utilization on the card every month, which would kill your scores
For example on what can help:
If your normal usage is up to 1k a month but one month you broke the pattern and ran the card up to $ 4k, then the scoring models will pick up the $ 4k high balance as your credit limit.
If you went back to your normal up to 1k a month usage it would look like you are only using up to 25% utilization on the card.
**those are examples “only” and I am “in no way” suggesting that you run up your card if it is not financially feasible for you**
As for what other cash back rewards cards you might prefer over this one, you might look over the reviews on cardratings.com – I am not saying that you should apply from that site, only use it for your research on other rewards cards.
You might also look at Penfeds (Pentagon Federal Credit Union) rewards card. (www.penfed.org)
You can join Penfed if you join NMFA for a small fee.
The Penfed rewards card has a 2% cash back on supermarket purchases, 5% at the pump and 1.25% cash back on all purchases. There is no yearly cap and the rewards are credited each month.
Without knowing your scores or if your reports are clean, I would suggest leaving the World card open but keep the utlization down if/when you decide to apply for a different rewards card.
Know better? Leave your own answer in the comments!