FM:Have you guys heard about the CitiBank-Shell Credit Card that is being promoted at Shell Stations around Malaysia. Before you guys sign-up for the CitiBank-Shell Credit Card, please have a read below. Sometimes when you subscribe to credit card, we all don't read the fine print.
Are you fancy of getting a credit card that offers 5% rebate on shell petrol and 1.5% rebate on other purchases?
If your answer is yes, then you are draining your money away!
The newly launched Shell Citibank credit card is not as good as its sounds - to enjoy the rebate, you must have a carry forward balance. Yes, a carry forward balance that you have to pay Citibank 18% interest per annum. But that's is not all, your so called 'rebate' is based on your current month spending. That means if you have a carry forward of RM10,000 but did not use the card at all for the current month, you get 'zero' rebate.
To be precise, this 'rebate' card is an old card - it has been around for about 2 years. But now taking advantage of the fuel cost concern, Citibank co-branded it with Shell.
This is how the rebate scheme works:
· First, you need to have a carry forward balance. The amount of that carry forward determines the rebate rate (%) that the card holder is getting.
· Then based on your current month spend, you will get the rebate (as shown by the rebate table above) - your rebate is not based on your total carry forward balance. Repeat: your rebate is not based on your total carry forward balance, but current month spending
In short, to get your 'rebate' you must have at least of RM2,000 outstanding balance in you card AND continue use the card. The outstanding balance is the net of previous month balance minus current month payment. If you do that, every month you will be paying RM30.00, or RM360 a year for the minimum RM2,000 outstanding balance.
Let's do a simple math here:
If you spend RM500/mth on shell petrol and your classic card has a RM2,000 outstanding balance, at 1.5%, you are getting RM7.50 as 'rebate', while at the same time, paying RM30.00 for the interest. The 'nett' profit for Citibank is RMRM22.50. Your are essentially "over paying" 4 times the price (30/7.5)
To 'break even' (so that your RM30.00 interest payment = rebate value), you need to pump RM2,000 shell petrol a month, or charge RM6,000 a month for non-shell related purchases.
The USD100.00 per barrel of crude oil won't kills you, but the Citi-Shell card will.
4 comments:
Dear Sir,
Thanks for your good sharing.
Anyhow, every card have their own benefit and disadvantages.
I agree with your calc and I think you are fully understand the cc (credit card).
Why dont we take the opp to study over the good thing instesad of comment the bad thing?
With citibank gold shell card, you are entitle to get 2.5% cash rebate on fuel transaction at shell.
It mean, with no T&C (no balance oustanding or no balance carry forward), you are entitle to get a cash rebate at RM2.50 per RM100 fuel that you spend for.
Imagine, if 1 month u spend RM400 in your petrol, will u save RM10 per month? What are the amouunt that you might save over long run? Eg: 20 years? DO you think msia oil price will increase due to the global oil always kiss new high? US 127 per barrel?
TO be frank, I am a citibank full time credit card agent.
Guy, let us share the good thing for the reader outside.
You are welcome to contact me at 012-9687077.
No Offense. jUst sharing.
Thanks.
Ivan
Eligibility
2. This Campaign is only applicable to any new to Citibank (has never owned a Citibank credit card or has not owned a Citibank credit card over the last one month)The funny thing is i've been receiving calls from them asking whether i am interested on this shell card or not but i am an existing Citibank credit cardholder.("Rebate") under this Campaign to be reflected in the Cardholder’s next credit card statement. Meaning you got to continuously use Shell in order to benefit the rebate. Anyway, things dont get bad comment if there are that good, if u were talking bout the good things i think the reader can read it at the citibank website, it's about it's good benefit there. Just my 2 cents.
Agreed with your statement, most of the people do not really understand the detail about the citibank shell gas credit card and end up closing their account..
Having a credit card these days is like having a double-edged sword - it cuts on both sides. Although there are good points of having a credit card, we need to be careful so that the debt can be managed.
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