How do not-your-bank credit cards work?
December 18, 2015 12:47 AM Subscribe
I have had two credit cards for years, but both have been with my bank (Chase). I am interested in a Citi rewards card. How does that work, payments-wise? Do I have to open up a bank account at Citi? Can I pay it via Chase bill pay? Can I do auto pay via my Chase checking account? How do I get the Citi rewards out? These are surprisingly difficult questions to google and if it will be a hassle to go outside my bank I'll just not get the new card.
Bonus: please educate me on how other cards not even associated with a bank (like store cards - Kohl's, Victoria's Secret, etc) work. And what happens if I ever choose to leave Chase as a bank but want to keep their cards.
Bonus: please educate me on how other cards not even associated with a bank (like store cards - Kohl's, Victoria's Secret, etc) work. And what happens if I ever choose to leave Chase as a bank but want to keep their cards.
As far as redeeming the rewards, you can opt to take them as a statement credit on your credit card account.
posted by jkent at 2:42 AM on December 18, 2015
posted by jkent at 2:42 AM on December 18, 2015
Store cards, airline cards, and such. are typically rebadged credit cards issued and administered by a major card issuer, often Chase.
posted by justcorbly at 3:07 AM on December 18, 2015
posted by justcorbly at 3:07 AM on December 18, 2015
Best answer: To get into a little more detail:
When dealing with two different banks it requires a little more setup and you have a few more options. Of course you can always just pay with paper checks if you want to rock it 20th century style. Otherwise, you'll need to manually link your card with your bank account. You can do that through Chase's bill pay mechanism (just add the Citi card as another bill) or you can enter your bank account information into the Citi web site and pay your bill there. (Or both if you want to keep your options open). If you ever close your Chase bank account, you just need to go through the same process of linking your new bank account to your old cards. All of this applies regardless of whether the name on the card is a bank, a store, or one of the Kardashian sisters. (Yes, there are Kardashian branded credit cards, no, you should not get one, they are a horrible deal)
As for rewards (I assume you mean cash-back), you generally need to go to the card-issuer's web site and claim these, and they show up as a credit on your next statement.
posted by firechicago at 4:27 AM on December 18, 2015
When dealing with two different banks it requires a little more setup and you have a few more options. Of course you can always just pay with paper checks if you want to rock it 20th century style. Otherwise, you'll need to manually link your card with your bank account. You can do that through Chase's bill pay mechanism (just add the Citi card as another bill) or you can enter your bank account information into the Citi web site and pay your bill there. (Or both if you want to keep your options open). If you ever close your Chase bank account, you just need to go through the same process of linking your new bank account to your old cards. All of this applies regardless of whether the name on the card is a bank, a store, or one of the Kardashian sisters. (Yes, there are Kardashian branded credit cards, no, you should not get one, they are a horrible deal)
As for rewards (I assume you mean cash-back), you generally need to go to the card-issuer's web site and claim these, and they show up as a credit on your next statement.
posted by firechicago at 4:27 AM on December 18, 2015
As far as redeeming the rewards, you can opt to take them as a statement credit on your credit card account.
You would think so (I can do this with my AmEx, which I use as my main credit card), but I just went online for my Citi Dividend card, and the options for redeeming my rewards there are check, gift card, or direct deposit. The direct deposit can be to a non-Citi bank account. Applying my rewards directly as a credit to my Citi card statement does not appear to be possible.
I have a Citi Dividend card. I don't have a Citi bank account. I have the option to set up autopay for it — I'd just have to supply my bank's routing number and my account number and Citi could make the automatic withdrawals from my bank account.
Here's Citi's online help center. It's kind of byzantine to navigate, but you may find relevant information under Credit Cards — AutoPay, and under Rewards — Credit Card Reward Programs — Cash Rewards. (Of course I can't just link directly to the relevant pages.)
posted by DevilsAdvocate at 4:29 AM on December 18, 2015
You would think so (I can do this with my AmEx, which I use as my main credit card), but I just went online for my Citi Dividend card, and the options for redeeming my rewards there are check, gift card, or direct deposit. The direct deposit can be to a non-Citi bank account. Applying my rewards directly as a credit to my Citi card statement does not appear to be possible.
I have a Citi Dividend card. I don't have a Citi bank account. I have the option to set up autopay for it — I'd just have to supply my bank's routing number and my account number and Citi could make the automatic withdrawals from my bank account.
Here's Citi's online help center. It's kind of byzantine to navigate, but you may find relevant information under Credit Cards — AutoPay, and under Rewards — Credit Card Reward Programs — Cash Rewards. (Of course I can't just link directly to the relevant pages.)
posted by DevilsAdvocate at 4:29 AM on December 18, 2015
You will get a bill, just like you get a bill for your electricity. You pay the bill just like you would pay the bill for your electricity.
It isn't any bit more complicated than that.
posted by TinWhistle at 6:07 AM on December 18, 2015 [5 favorites]
It isn't any bit more complicated than that.
posted by TinWhistle at 6:07 AM on December 18, 2015 [5 favorites]
Best answer: you can enter your bank account information into the Citi web site and pay your bill there.
I recommend doing this rather than using billpay from one's bank, as Citi will always know exactly what the due date and minimum payment is. You should never carry a balance that's costing you interest, but if you get a promotional 0% APR, unless your debt to income ration is tight, there's no harm in only making the minimum payment and putting the rest into savings until just before the expiration of the low APR.
How do I get the Citi rewards out?
I have two Citi rewards cards. Both of them allow me to get a check, ETF to a bank account, or to buy gift cards. One also allows applying the reward to the balance, but does not count it as a *payment*, so the minimum payment still needs to be made.
posted by Candleman at 6:11 AM on December 18, 2015
I recommend doing this rather than using billpay from one's bank, as Citi will always know exactly what the due date and minimum payment is. You should never carry a balance that's costing you interest, but if you get a promotional 0% APR, unless your debt to income ration is tight, there's no harm in only making the minimum payment and putting the rest into savings until just before the expiration of the low APR.
How do I get the Citi rewards out?
I have two Citi rewards cards. Both of them allow me to get a check, ETF to a bank account, or to buy gift cards. One also allows applying the reward to the balance, but does not count it as a *payment*, so the minimum payment still needs to be made.
posted by Candleman at 6:11 AM on December 18, 2015
I have a citi card. I pay it online through the citi cards site from one of my checking accounts. I don't even receive a bill, just an email and a txt reminding me to pay. A real-time bill is available online whenever I want to see it. My rewards are airline rewards which just accumulate by the zillions and then I go somewhere first class for free and it's grand.
citibank is always offering me 50k miles and other various HERE'S FREE MONEY FOR YOU deals to open an account with them but i am not particularly interested in banking with them.
posted by poffin boffin at 7:59 AM on December 18, 2015
citibank is always offering me 50k miles and other various HERE'S FREE MONEY FOR YOU deals to open an account with them but i am not particularly interested in banking with them.
posted by poffin boffin at 7:59 AM on December 18, 2015
I just this morning deposited a rewards check from a Citi DoubleCash card into my non-Citi checking account. You just log in to your account on the Citi site and request that they send you a check.
I have a ton of credit cards with financial institutions that I don't have any other relationship with, and I also have store cards (Kohl's, Macy's, Target). All of them are either set to autopay on the credit card website, or I have their billing info in my checking account's Bill Pay so I can easily send payments. You could also just mail checks, or usually you could call and have them take your checking info and do a payment over the phone. There are lots of ways to pay!
I also have cards with institutions where I used to have other banking products and no longer do. Doesn't matter. They can close your checking account but keep your credit card open.
posted by rabbitrabbit at 8:31 AM on December 18, 2015
I have a ton of credit cards with financial institutions that I don't have any other relationship with, and I also have store cards (Kohl's, Macy's, Target). All of them are either set to autopay on the credit card website, or I have their billing info in my checking account's Bill Pay so I can easily send payments. You could also just mail checks, or usually you could call and have them take your checking info and do a payment over the phone. There are lots of ways to pay!
I also have cards with institutions where I used to have other banking products and no longer do. Doesn't matter. They can close your checking account but keep your credit card open.
posted by rabbitrabbit at 8:31 AM on December 18, 2015
FWIW most credit card rewards can also be redeemed through a shopping interface operated by or for the credit card company. Sometimes this is a crappy deal, but sometimes it's actually a better deal than getting cash back. My wife and I have cards from Chase, Citi, and Discover. With each of these there's a slightly different bonus on certain activity, and you should pick your card and your shopping so that you maximize that bonus.
So, to use a real world example, all three of our cards can be linked to Amazon and used to purchase goods on Amazon (instead of through card-branded stores) for points. At Amazon our Chase Ultimate Rewards and Discover points are worth 1¢ each, while our Citi Thank You points are worth only 0.8¢ each. Since the Citi incentive is less than the other two, we don't use our Citi points at Amazon. But as the holidays approached we got an offer from Citi for 10% off gift cards bought with points, so we bought a $50 iTunes gift card for 4500 points, which would have had only $36 worth of purchasing power at Amazon.
On the other hand, our Chase Sapphire Preferred card (which has an annual fee) includes a bonus on travel expenses, both doubling the points we earn and providing a discount if we redeem those points for travel through their site (instead of Travelocity or Expedia or whatever). We've redeemed Ultimate Rewards points for plane tickets and hotel reservations, at much higher value than just the 1¢ per point we'd get at Amazon. So yes, we pay an annual fee, but we also get enough extra value on travel expenses (and stuff like travel insurance coverage and the general level of customer service) that it works out well for us.
Note also that part of the points maximization strategy with Ultimate Rewards is to transfer points to a partner brand, and while the math has never worked out for us at redemption time we always do the math before booking any travel. Your willingness to bargain hunt in this way may vary.
And since I haven't mentioned the Discover card in this context yet: since they rotate through quarterly bonuses (online shopping, gas stations, hardware stores, etc) we generally maximize our bonus earning by shifting spending accordingly and then (indeed) we just spend the points on Amazon instead of redeeming them for cash.
TL, DR: shop around for how to earn and spend your points in order to maximize your bonuses. Some points are earned more quickly than others, or are worth more when spent a certain way.
posted by fedward at 9:38 AM on December 18, 2015
So, to use a real world example, all three of our cards can be linked to Amazon and used to purchase goods on Amazon (instead of through card-branded stores) for points. At Amazon our Chase Ultimate Rewards and Discover points are worth 1¢ each, while our Citi Thank You points are worth only 0.8¢ each. Since the Citi incentive is less than the other two, we don't use our Citi points at Amazon. But as the holidays approached we got an offer from Citi for 10% off gift cards bought with points, so we bought a $50 iTunes gift card for 4500 points, which would have had only $36 worth of purchasing power at Amazon.
On the other hand, our Chase Sapphire Preferred card (which has an annual fee) includes a bonus on travel expenses, both doubling the points we earn and providing a discount if we redeem those points for travel through their site (instead of Travelocity or Expedia or whatever). We've redeemed Ultimate Rewards points for plane tickets and hotel reservations, at much higher value than just the 1¢ per point we'd get at Amazon. So yes, we pay an annual fee, but we also get enough extra value on travel expenses (and stuff like travel insurance coverage and the general level of customer service) that it works out well for us.
Note also that part of the points maximization strategy with Ultimate Rewards is to transfer points to a partner brand, and while the math has never worked out for us at redemption time we always do the math before booking any travel. Your willingness to bargain hunt in this way may vary.
And since I haven't mentioned the Discover card in this context yet: since they rotate through quarterly bonuses (online shopping, gas stations, hardware stores, etc) we generally maximize our bonus earning by shifting spending accordingly and then (indeed) we just spend the points on Amazon instead of redeeming them for cash.
TL, DR: shop around for how to earn and spend your points in order to maximize your bonuses. Some points are earned more quickly than others, or are worth more when spent a certain way.
posted by fedward at 9:38 AM on December 18, 2015
In my case, my bank account is with Bank A, but my credit card is with Bank B (forex transfers are fee free with Bank B). I don't have a bank account with bank B. I log into my internet banking at Bank A's website, choose the pay a credit card option, fill in the card number and [name of Bank B] and click the Pay button. The money takes ~48 hours to be applied to the credit card.
I can also set up a direct debit on my credit card account with Bank B to automatically take the money from my account with Bank A, but it looks like this might not be a thing in the USA, or possibly it has a different name. Wikipedia is kinda light on details.
"Bill pay" sounds like it might be the way to send the payment over, but you might find it easier to set up auto pay to send over $x per month. That way, you won't forget to do it, if that's a thing that might be a problem for you.
It's possible to close all of your bank accounts, with every bank, and still keep your credit card. It's much more hassle as you'll make it much more difficult to pay - no auto pay, no writing a cheque, etc - but it's totally doable.
posted by Solomon at 11:20 AM on December 18, 2015
I can also set up a direct debit on my credit card account with Bank B to automatically take the money from my account with Bank A, but it looks like this might not be a thing in the USA, or possibly it has a different name. Wikipedia is kinda light on details.
"Bill pay" sounds like it might be the way to send the payment over, but you might find it easier to set up auto pay to send over $x per month. That way, you won't forget to do it, if that's a thing that might be a problem for you.
It's possible to close all of your bank accounts, with every bank, and still keep your credit card. It's much more hassle as you'll make it much more difficult to pay - no auto pay, no writing a cheque, etc - but it's totally doable.
posted by Solomon at 11:20 AM on December 18, 2015
I've done this forever. I do all my bill paying online. When you open the Citi account, go online to the Citi bill pay section. They will ask for your checking account number and routing number (Both can be found on one of your Chase checks or on your Chase account site.) Once those numbers are in, you can send Citi money from your Chase account whenever you want.
posted by freakazoid at 1:24 PM on December 18, 2015
posted by freakazoid at 1:24 PM on December 18, 2015
Response by poster: Thanks, all! I thought it might be that simple, but then again figured double-checking prior to taking the credit hit and financial entanglement would be the wiser route to take.
posted by vegartanipla at 6:08 PM on December 18, 2015
posted by vegartanipla at 6:08 PM on December 18, 2015
This thread is closed to new comments.
Credit cards are separate from bank accounts, so it should be no problem to leave Chase and keep the credit cards.
posted by griseus at 12:53 AM on December 18, 2015 [5 favorites]