Citi Credit Cards : All your questions answered

Should you continue using your card, will your credit score be hit—all your questions answered

Let’s decode the most common questions of Citi credit card customers pertaining to reward points, dues and more.

Should I continue holding the Citi credit card after the announcement that Axis Bank is acquiring the credit card business?

Do
not rush to surrender the Citi credit card right away after this
announcement. “Axis bank is a significant player in the credit card
segment and has a good credibility in the market. Wait until the
migrating offer from the Axis Bank to existing Citi credit card
customers,” says Parijat Garg, a digital lending consultant. He adds,
you can plan to exit after evaluating the offer from Axis Bank. Anyone
who has Axis bank credit card right now and also a Citi bank credit
card. They should evaluate which card is better for them and continue
with one. You may not like to hold two credit cards with similar
benefits in your wallet.

Assume a customer is using a Citi
IndianOil Credit Card or Citi Gold credit card. “It will be interesting
to see how it will get mapped to AXIS bank credit card as they also have
a separate set of credit cards,” says Garg. He adds, it’s important you
migrate to a credit card that has equal or better rewards and offers.
Also, your credit limit should remain the same or improve. Then it makes
sense for Citi credit card customers to continue with Axis Bank.

Will Axis Bank devalue Citi reward points during acquisition?

No,
Axis Bank will not devalue reward points while acquiring. “The
customers will have better terms and offers, a wider set of services. We
believe we can match those offers and retain it that’s guaranteed for
any customer who is coming over as part of this transaction,” says
Subrat Mohanty, Group Executive – Banking Operations &
Transformation of Axis Bank.

I have an ongoing dispute with the Citi credit card related to an outstanding amount. What I should do now?

If
you have some disputes related to an outstanding amount or late payment
charges with Citi bank, then clear them while it is still in operations
in India and make sure your credit history is clean. Once Citibank
exits its India retail business, i.e. after this acquisition gets over
in six to nine months, getting a resolution to your card complaints
might be difficult and time-consuming. “An unresolved dispute may also
reflect in your credit report. In future, there could be challenges
while applying for a loan,” says Garg.

Will Citi’s exit impact my credit score?

No,
there won’t be any impact on your credit history, if you exit from Citi
bank’s credit card or you are transferred to the acquiring bank. “The
credit history travels with you and it’s not linked to a particular
organisation,” says a spokesperson from www.creditca...in.

What parameters should I evaluate to decide whether to continue with the credit card or exit?

The
Citi reward points do not expire. But, Axis bank may set some expiry
date for your points, depending on the type of card. Ajay Awtaney,
editor of LifeFromALounge.com, says, “When you are transferred to the
acquiring bank, you must evaluate the acquirer’s history and experience
in the credit cards segment, whether existing benefits will be
continued.”

The
credit limits offered by Citibank on credit cards are much higher
compared to most of the banks. Will there be a re-look on those limits
now by Axis Bank?

Mohanty says that the credit limits of
all Citi customers are most likely to remain the same. “The limit on
credit cards is determined by the quality of the customer. So, it’s not
always comparable,” says Mohanty. But he adds that the bank has done its
due diligence and has “fairly done a detailed understanding and
analysis of Citi’s customers. So, existing credit limits will continue.”

But, if you have a poor credit history during this transition period, there is a possibility that Axis bank will lower your credit limit.

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