Cancel Citibank Platinum $0 Annual Fee for Life Credit Card?

Hoju on 03/05/2018 - 19:33

In the midst of applying for a home loan and credit cards are not your friend at this time, so I'm considering ditching my Citibank Visa card.

Thanks to Ozbargain I've had the Citibank platinum card with no annual fee for life for about ten years.
Once a year or so I cash in the rewards for $100 or so of woolies gift cards.
I've used it to purchase flights in the past, with the understanding that I'll get the travel insurance coverage.

Other than that I don't seem to have any special use for the card. And I have a new provider for travel insurance anyway so that component isn't necessary.
Perhaps I'm missing something?

Unfortunately the minimum limit is $6000 which really kicks my borrowing capacity.
But if I cancel I'll never have this card again, and not sure if there are other $0 annual fee Visa cards with some sort of rewards offered.

Does anyone have any secret tips on why this card is worth keeping close? We mostly use our free qantas Amex anyway, and just have the visa for places that don't take amex.

Financial

Comments

  • CyberMurning on 03/05/2018 - 19:56
    +1

    Same here but I have been told its not wise to cancel. Free lounge in airports and travel insurance are big benefits if this card

  • Hoju on 03/05/2018 - 19:56

    There’s a lounge?!

    • Ryanek on 04/05/2018 - 10:33
      +1

      I have this card and there's definitely no lounge.

      • thord on 04/05/2018 - 13:29

        There is. Priority pass 2 or 3 free visits a year.

        I believe it only comes with the signature/visa infinite version of the card, so if you're not spending enough you won't get the lounge benefit.
        It also has a minimum $15,000 limit so there that too.

        • Ryanek on 04/05/2018 - 13:39

          Ahh yeah, unfortunately not the Platinum.

  • RM on 03/05/2018 - 20:03
    +2

    Here's the secret tip.

    1. Cancel the card.
    2. Get your home loan.
    3. Reactivate the card account within 3 months of cancelling (Citibank allows this - only within 3 month)
    • Hoju on 03/05/2018 - 20:05
      +2

      Woah really!!???
      damn they didn’t tell me that on the phone - I outlined my circumstances quite precisely.
      I assume they don’t want to encourage it for $0 annual fee card holders that always pay the bills on time!

      • bluesky on 03/05/2018 - 21:05
        +1

        If you are going for the reactivate option, perhaps ring up and make sure that they will not weasel out of the "Free for life" bit when you want to reactivate (just say you might reactivate and want to be sure). Just in case later, they make up some excuse about how special promotional conditions such as this do not carry over during reactivation.

    • burningrage on 03/05/2018 - 20:16
      +1

      Point 3. I second that. I was offered to reactivate a cancelled card. I declined however.

    • T-man on 03/05/2018 - 20:47

      Pretty sure you can do this with any other banks like ANZ, Amex, Westpac, not only with Citibank.

  • tomsco on 03/05/2018 - 20:12

    Not that I am saying this is recommended as it could constitute frauds, but as our Citibank is a back up sitting unused, I actually forgot putting it on my application, only remembered when the compromised details were used online and got a call from Citibank.

    • Hoju on 03/05/2018 - 20:19

      I think they can tell when they do a credit check which cards you have? Not what limit, that bit is down to you

      • dasher86 on 04/05/2018 - 08:30
        +1

        Not really. Cards drops off after 5 years and they can only see if you have made an application not if you cancelled it..

        • Easton on 10/05/2018 - 00:00

          It'll show up once comprehensive credit reporting starts. Some banks have already started.

  • burningrage on 03/05/2018 - 20:18

    Don't cancel it in any case. Fee Free for Life may not happen for a very long long time again.

    This sounds like the peril of Comprehensive Credit Record scheme.

    • Samsungnote10 on 03/05/2018 - 22:28

      One of my relatives has it. I beleiev it's well over ten years ago it finished

  • SmiTTy on 03/05/2018 - 20:47

    I'd question if the credit card is still on your credit report? Esp if its over ten years since you applied.. I thought credit reposts only go back 6 or 7 odd years?

    Unless you actively use it and the bank sees you're making payments on it when they ask for your bank statements. In this case it's your credit limit that affects the loan rather than your credit rating

    Alternatively consider just reducing your credit limit on the cc to minimum (or whatever you reasonably use)

    • Hoju on 03/05/2018 - 20:59

      The $6k minimum limit is really frustrating.
      Broker crunched some numbers. It’s almost like for every $1k you reduce your credit limit, you gain $10k borrowing capacity.

      • Lastchancetosee on 04/05/2018 - 08:01

        I wanted to reduce my limit and initially Amex and ANZ were unwilling to go below $6k. I threatened to close the accounts if they weren't more flexible. Result : Amex agreed to $2600 limit, and I closed the ANZ card.

        • Hoju on 04/05/2018 - 08:02

          Tried this - they said ok let’s proceed with the cancellation. Doh!

        • coolsteps on 09/05/2018 - 00:31

          told amex I wanted to apply for a home loan once and wanted to reduce my large limit to the bare minimum lady on phone was very understanding and said the lowest was $1000 lol so I accepted it.

      • thord on 04/05/2018 - 13:31

        That's pretty nuts, I have probably $25k in credit limit, I never use it, but I can't reduce it any further.

    • Easton on 09/05/2018 - 23:58

      It'll show up once comprehensive credit reporting starts.

  • bluesky on 03/05/2018 - 20:54
    +2

    Better to close all other credit cards that you can easily apply again down the track, than to cancel this.
    If you have only the Qantas Amex and this card, it does not seem excessive. You can also consider reducing the limit on the Qantas Amex a bit (min is $2000 I believe). I think this can be easily increased again once you are approved for the home loan.

    • Hoju on 03/05/2018 - 20:59

      Yes Amex is down to $2k and wife’s Amex cancelled, now a supp on my card.

  • Geoffreys on 04/05/2018 - 08:34
    -1

    You can likely get a new Credit Card packaged with your home loan which is free for life of the loan. It’s effectively the same thing.

  • Hoju on 05/05/2018 - 05:52
    +5

    Just as an update, I called them again yesterday and specifically asked about re-activating the card. They were happy to cancel and re-activate under the same terms and conditions with no annual fee within three months. Hooray!
    Thanks for the help and suggestions OzBargain

    • tunzafun001 on 17/05/2018 - 22:41

      I'm in a similar situation (except with a Signature card 5yr + old, and I think the min is $15k). Plus an AMEX and 3 other cyclics (ANZ/ NAB/ Virgin Money). When I checked my credit score all I could see was the ANZ app at 6k and the AMEX with no limit listed. I listed my ANZ at 6k and AMEX at 8k and left the others off. My broker told me not to worry about it, and I got pre-approval via StGeorge.

      Are you saying when they go the next stage I might come unstuck? or with pre-approval am I good to go? Settlement is in 100 days, so got time to make changes if needed.

      Figured I'd just cancel only if it was raised as an issue?

      • Hoju on 18/05/2018 - 05:54

        I’m not sure myself.
        Was this reply meant for Easton above?

  • coolsteps on 09/05/2018 - 00:40

    ive had luck doing this trick with wbc anz amex Citibank. does anyone know of others ? does anyone know if St George bank let you re-instate a credit card? they are the only bank that never tried to persuade me to not to close it and closed it on the spot a real strange bunch there. if possible so within how many months is still allowed and will they still charge the annual fee or will it be pro rated?

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