On July 23, 2017, Citi removed their card benefits like trip protection and insurances.

A lot of cardholders are wondering what their options are — should they cancel or product change the Citi Prestige?

Annual fee

A significant factor in determining which route to take is the annual fee. The annual fee is $450, but it comes with a $250 travel credit, making the effective annual fee $200.

In some cases, you can apply in-branch to receive a lower annual fee of $350, making the effective annual fee $100 after the travel credit.

The main question is if the lower $350 annual fee will be honored the second year, or if the fee will increase to $450.

We’re hesitant to keep the card with an effective $200 annual fee because there are alternative luxury cards like the Chase Sapphire Reserve and American Express Platinum that provide the same, if not better, value.

Before considering downgrade/product change options, we need to consider if this card is worth keeping.

4th night free

The best perk the Citi Prestige is known for is book 3 consecutive nights, get the 4th night free. In order to redeem this perk, you have to book through the Citi Prestige Concierge.

Effective July 23, 2017, Citi will rebate the average room rate across your stay of 4 or more nights, not including taxes.

Citi ThankYou Points

My main concern is that if I cancel or product change the card, I won’t be able to receive an intro bonus for a Citi card (that earns ThankYou points) in the next 2 years.

Citi has a rule that you can qualify for an intro bonus every 2 years across the same product family. For example, if you were approved for the Citi ThankYou Preferred card in 2015, you would not receive an intro bonus for the Citi Prestige if you applied the same year. You would have to wait until 2017 to qualify for another Citi intro bonus.

Since I signed up for the Citi Prestige in September 2016, that means I won’t be eligible for another ThankYou bonus until September 2018. If I cancel the card now, it resets the clock meaning I won’t be eligible for another bonus until September 2019.

Product change options

In terms of product changes, there are 3 cards I’m considering:

1. Citi Custom Cash® Card
2. Citi Double Cash® Card
3. Costco Anywhere Visa® Card by Citi

Citi Custom Cash® Card

Pros:

• Earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to $500 spent, 1% cash back thereafter
• 5% eligible categories: Restaurants, gas stations, grocery stores, select travel, select transit, select streaming services, drugstores, home improvement stores, fitness clubs, live entertainment.
• Earns Citi ThankYou points
• No activation required

Cons:

• Only ideal if you have heavy spend in one of the qualifying 5% categories mentioned above

61f662b66a3bc52492e64945

Citi Double Cash® Card

Pros:

• 2% on all purchases — 1% when you make a purchase and another 1% when you pay the bill
• Citi Price Rewind, but this benefit is included with every card

Cons:

• If you have the Chase Freedom Unlimited and the Chase Sapphire Reserve, you can earn 1.5x with the Unlimited and redeem for 3x when you transfer points to the Reserve.
• I usually have a new card I’m trying to meet minimum spend on…the 2% might not make sense for me vs. meeting minimum spend

61f6630cdb047c410efff4c0

Costco Anywhere Visa® Card by Citi

Pros:

• I already have Costco membership so “no annual fee”
• Earn 4% on gas, 3% at restaurants+travel, 2% at Costco
• Extends Costco warranty on purchases by 2 years

Cons:

• “Locked in” to Costco
• Gas isn’t relevant to me (no car) and there are better alternatives for restaurant+travel (CSR)
• Earn 2% at Costco vs. 1.5% with the Freedom Unlimited (effectively 3% if you transfer points to the Chase Sapphire Reserve)
• Costco already has an amazing warranty policy

How to request a product change

To request a product change, call the number on the back of your Citi Prestige credit card. Let the agent know which product you'd like to switch the card to.

‍

‍