In yet another edition of Credit Card Madness I will once again compare two no fee annual credit cards. This time I am focusing on two cards from Citi Bank. Similar to the previous editions of Credit Card Madness, one of these cards is an entry-level points earning credit card and the other is a cash back card. If you have been following along, I already reviewed cards from Bank of America, American Express, and Chase. Keep in mind, as the competition continues, winners from previous rounds advance to take on other cards. Today, it’s the Citi ThankYou Preferred card taking on the Citi Double Cash card. I believe both cards offer incredible value, but sadly, only one can move on.
Citi ThankYou Preferred
The ThankYou Preferred card from Citi is a no annual fee credit card which earns ThankYou points. ThankYou Rewards points are, in my opinion the most underrated rewards points out there. Citi has spent a considerable amount of time improving the ThankYou rewards program over the past few years and it shows. Airline and hotel transfer partners are not as robust as the Ultimate Rewards program, but card holders can easily find worthwhile transfer opportunities. Specifically, I transfer ThankYou points to Singapore KrisFlyer for incredible value when redeeming for Singapore Airline flights or StarAlliance partners.
Key Benefits
- No Annual Fee.
- 15,000 ThankYou Points after spending $1,000 in the first 90 days following account opening.
- 2X ThankYou points on all restaurant and entertainment purchases.
- 1X ThankYou points on all other eligible purchases.
- 0% Intro APR for the first 12 months.
Benefits Overview
Unlike other rewards credit cards that tend to reward travel related spending, the Citi ThankYou Preferred card is best for people who stick to dinner and a movie. 2X ThankYou points at restaurants is fairly generous for a no annual fee card, but the 2X entertainment category is equally rewarding. Entertainment includes a wide variety of purchases that typically do not earn bonus points on other cards. The entertainment category alone may make the card worth adding to you wallet if you do not already have a card earning bonus points for entertainment spending.
Entertainment spending includes live entertainment, live theatrical productions, concerts, live sporting events, movie theaters, amusement parks (including zoos, aquariums, circuses and carnivals), tourist attractions (including museums, and art galleries), record stores, video rental stores and on-demand internet streaming media)
The sign-up bonus is a little low at just 15,000 ThankYou points, but considering those points are easily transferred to some of the largest airlines in the world make the points extremely valuable. Similar to other flexible currencies, I value ThankYou points at $0.015, which makes the bonus worth approximately $225. Again, not terrible for a no annual fee credit card.
Citi ThankYou Preferred Summary
Although the card may seem to have limited benefits it is important to keep in mind that this is a no annual fee version of a rewards credit card. The ThankYou rewards program offers direct 1:1 points transfers to several incredible airlines. Card holders earn unlimited ThankYou points that do not expire, as long as your account remains open. This card is prefect for anyone who spends a considerable amount of annual spend on entertainment. At the moment, I can’t think of any other card (non-Citi) cards that offer bonus points on this category.
Citi Double Cash
The Citi Double Cash card is one of the most unusual Cash Back credit cards out there. Unlike other credit cards which encourage customers to carry a balance, the Double Cash card rewards consumers who pay their balance in full each month.
Key Benefits
- Earn 1% Unlimited Cash Back on all purchases.
- Earn another 1% Cash Back when you pay off those purchases. As long as you make monthly minimum payments.
- No Annual Fee
- 0% APR for the first 15 months following account opening.
Benefits Overview
This is one of the most interesting cards included in Credit Card Madness thus far. The card is basically a 2% Cash Back card on all purchases. There are no bonus categories to worry about either. It’s just 2% across the board. On top of that, Cash Back is easily redeemed via a check, statement credits, or gift cards.
Citi Double Cash Overview
Overall, the Citi Double Cash card is pretty incredible. I can’t think of any other Cash Back credit cards that earn 2% Cash Back on ALL purchases. Also, the card encourages card holders to pay off their balances which will help avoid costly interest fees. I don’t like that this card does not offer any form of sign-up bonus. I think it would be nice to at least offer $100 initially to get people to apply. With that, if you are looking for a simple, easy to use, Cash Back credit card, look no further than the Citi Double Cash card.
And The Winner Is!
This is the most difficult matchup yet. I personally think both card offer incredible value for a no annual fee card. The ThankYou Preferred allows card holders to earn valuable ThankYou Points and offers a fairly generous sign-up bonus. On the other hand, the card only earns bonus points on restaurants and entertainment which is limiting. The Citi Double Cash card earns a full 2% back on ALL purchases. On top of that, it is incredibly easy to use. Because of that, I this round goes to the Citi Double Cash card.
Note
When ranking these cards I try to get into the mindset of applicant. I believe most people opening a no annual fee credit card are either new to credit or just looking for an easy way to earn some rewards for everyday spend. The ThankYou Preferred can unlock great value, but are the majority of consumers going to take the time to find award space on a transfer partner airline? I personally don’t think so. Generally, the people I know with no annual fee credit cards end up using the points for merchandise or other terrible redemption options.
Since I think this is the case, I have to give this round to the Citi Double Cash card. As long as you use the card and pay it off you’re earning 2% cash back! With the Double Cash card you don’t have to worry about bonus categories and you can get your cash back in the form of a check, which feels pretty good!
Featured Images Courtesy of Citi
