The Citi Driver's Edge Card
A CFA Special Report 

This page will describe the benefits, drawbacks and various special considerations relating to the Citi Driver's Edge Platinum MasterCard.  Overall it is an excellent rewards card for most people: 

• It has a high rebate rate of 3% to 6%
• It rewards you for both purchases and for the miles you drive
• it rewards you for typical household purchases, rather than tempting you into making purchases that you wouldn't otherwise make.

Consumers who judge the card by its name might fall into the trap of assuming that this card is just for heavy drivers, but dig a little deeper and you'll find it's exceptionally rewarding for almost anyone.  For example, let's say you already spend $5,000 this year at supermarkets:  you'll receive a 6% rebate for that, amounting to $300.  You'll also earn $1 for every 100 miles you drive:  if you typically drive 10,000 miles per year, you'll earn another $100 every year.

Card Benefits

The CFA carefully investigated this card and observed the following benefits:

1. The rebate isn't cash, but it can be spent on needed purchases so it's basically equivalent to receiving cash back.  You can spend it on any automotive services, repair or maintenance.  You can convert rebates into Citi's ThankYou Points, which you can use to get gift cards at over fifty popular retailers.  You can also apply your rebate towards the purchase of nearly any motor vehicle -- new or used, from dealers or private parties.  You'll receive the rebate in the form of a check after you purchase the vehicle, and whoever you purchased it from will never know you received a rebate.  That means you are 100% free to negotiate the best deal on a car from any dealer or individual seller.
   
   
2. The method of computing interest is average daily balance of all your purchases.  You're avoiding the "double-cycle average daily balance" which some credit card companies use to hike your payments.
   
   
3. After you're approved, you can ask to have your own picture placed on the front of your card.  This will help make your card more secure.  Citi also offers 24-hour fraud protection and guarantees you'll have zero liability for unauthorized charges.
   
   
4. Automatic travel insurance of up to $1,000,000 is received whenever you buy a plane, ship, train or bus ticket with your card.
   
   
5. Auto rental insurance coverage is received to protect you from possible collision or theft when you pay for the rental with your card.
   
   
6. A Retail Purchase Protection feature protects your card purchases from theft or eligible damage for up to 90 days.
   
   
7. There is no annual fee.

How To Use It

Here are some features of this card that we recommend consumers be smart about:

1. The time to make your monthly payment is on the short side, a 20 day "grace period" -- we feel that 25 days would have been much more gracious.  To avoid a late fee of up to $39, pay your credit card bill promptly.
   
   
2. Two household members can apply for two accounts separately.  This lets a two-car family get rebates for the mileage on both cars.  Some people wait a year before getting the second card, in order to get another 6% rebate period.
   
   
3. Each Driver's Edge card account has a $1,000 rebate cap for any 12 month period.  If you find yourself earning more rebates, consider getting another rebate card.
   
   
4. Citi reserves the right to terminate your card or change the terms of the card agreement, but they must give you 30 days notice so you'll at least have the chance to convert your rebate points into gift cards.  Citi is fairer than most credit card companies, recently announcing that none if it's cards would have a "universal default" clause that penalizes you for being late on any of your payments.
   
   
5. Remember that you won't receive a rebate for anything you buy at a warehouse club or department store, even if you buy food there.  You'll receive a full rebate at a supermarket, which the Citi card company defines as a "stand-alone merchant that primarily sells a complete line of food merchandise for home consumption".  Note that you'll receive a rebate for anything you buy at a drugstore or supermarket, even if it's not drugs or food that you're buying there.
   
   
6. If you transfer a balance from another card to your Driver's Edge card, you'll pay zero interest for 12 months.  However, as you purchase more items, you'll find that all your monthly payments are going towards the balance transfer.  You won't start paying down your purchases until you've paid off your transferred balance.  The interest you'll pay on those purchases is a variable rate that usually hovers between 12% and 15%.  So if you want a zero percent interest rate, you're really better off getting some other zero-percent card that you'll use only for a balance transfer, not purchases.
   
   
7. Avoid these pitfalls:  (1) you must use your rebate points within five years or they'll expire; (2) if there's no transaction on your card for 12 months, your points expire; and (3) your "drive rebate" (your rebate for the miles you've driven) must not exceed your rebate for the purchases you made with your Driver's Edge card.  For example if your drive rebate is $100 and you have $50 worth of rebate points from purchases, your drive rebate is lowered to $50.

You can apply for a Driver's Edge card at Citi's credit card site.  After the first year your rebate returns to the normal 3% rate, so at that time you may want to add the Discover Gas Card to your wallet, in order to get their 5% cash rebate on gas purchases.