So that’s the problem…

Ok, obviously I have kept totally oblivious to the details of the bank meltdowns and bailouts over the past several months.  I guess Citi was one of the worst off, as the government has saved it a couple of times already and now owns a lot of share in the company.  On the positive side, the government has a directly vested interest in keeping Citi from failing; on the negative side, it seems not unlikely that more parts of Citi could be sold off – it could be fractured, restructured, and who knows what that would mean for an existing credit card and how benefits would change, etc.  And I expect ‘changes’ in the rewards and lender would be at the nice end of possibilities should Citi prove unable to improve its financial situation.

I ran some estimations of what I spend where, and Citi does look to beat out Chase Freedom significantly, especially in the first year.  Also, the ability to get the higher reward at Amazon allows me leeway to improve my overall reward rate.  On my guesstimations, it came out to 1.75% – 2% average, whereas Chase would be more like 1.4%.  Also Citi’s new account bonuses are $60 better, and Citi gives an extra $12 per year for good management of the card.  Not a ton, but as thrifty as I am, that means a significant percentage increase over Chase.

So, I’m thinking I sign up for it and hope for the best.  Hey, maybe even if they get broken up and auctioned off, the buyer will improve the card even more?  (Daydream believer…)


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