Update 07/17/17: Citi recently announced further improvements to the Citi Prestige card which I discuss here. After July 23, 2017 Citi Prestige card holders can book the 4th night free benefit online, Citi is introducing an increased sign-up bonus, and card holders can redeem ThankYou points for cash. Further new applicants will receive the new metal Citi Prestige card and existing card holders can request a new metal card after July 23.
Earlier I wrote about a call I had with Citi regarding downgrading the Citi Prestige card. The decision to downgrade the card was one that I did not take lightly. When Citi improved the benefits to the Citi Prestige card in 2014 to include Admirals Club access it quickly became my favorite card in my wallet! It interesting to look back at how unique the card was at the time.
The Original Design
First of all the design of the 2014 version of the Citi Prestige card was absolutely ridiculous. For some reason Citi thought it was a fantastic idea to put the metal chip on the “back” of the card. This meant, due to regulations, the strip had to be located on the “front.” Next, Citi though it would be a clever idea to move ALL information to the “back” of the card. The card holder name, account number, expiration date, CVV code, contact information, Admirals Club wording, and MasterCard branding is all on the back. Overall the back of the card was quite cluttered, but the front looked incredibly clean. None of this bothered me. What bothered me was that Citi decided to make the magnetic strip translucent!
The translucent strip means that the strip blends into the front of the card. It’s hard to tell if it’s the strip of the card or just another design element of the card. Again, none of this bothered me at face value, but the problem was that no cashier understood how to handle the card. Each time I used the card I’d have to explain to the cashier how to swipe it. Even when I used it to pay for things like gas I got confused on how to actually swipe the card. Citi realized the design of the card was an issue and redesigned the card a year later in 2015.
The Updated Design
The updated design of the card is much more traditional with the chip on the front and the strip on the back. Citi also decided to move the card holders name to the front of the card as well. The updated card is still plastic. That wasn’t too unusual in 2015, but I’m surprised Citi still hasn’t released a metal Citi Prestige card.
The Benefits
Today the Citi Prestige card’s benefits are not too unusual when compared to other ‘premium’ credit cards, but when Citi updated the card in 2014 the benefits were far superior to the competition. For a $450 annual fee, primary card holders received a $250 travel credit, same-day Admirals Club access, enhanced Priority Pass membership, a free golf benefit, 4th night free benefit, and great bonus point earning categories. Card holders earn 3X ThankYou points on “travel” purchases, 2X points on dining and entertainment, and 1X points on all other purchases.
Looking at those benefits today may not seem like much, but back in 2014 the American Express Platinum card only offered 1X Membership Rewards points on ALL purchases, Delta Sky Club access, limited Priority Pass membership, and access to Amex’s Fine Hotels & Resorts program. Also at that time Chase had yet to introduce the Chase Sapphire Reserve. At that time Chase only offered the Sapphire Preferred which earned 2X points on travel. At the time the Citi Prestige was probably the most rewarding ‘premium’ credit card on the market.
I almost forgot, the card also came with a 50,000 points sign-up bonus after spending just $3,000 in the first 90 days following account opening. Sure it’s not the biggest sign-up bonus ever, but it was a great bonus, especially at the time.
The Decline
Sadly, all good things must come to an end it seems. Clearly the benefits offered by the Citi Prestige card were unsustainable in the long run. In July of 2016, nearly 2 years after Citi introduced the improvements to the Citi Prestige card, the issuer dropped many of the best card benefits. First and foremost, Citi simply eliminated Admirals Club access. Citi is keeping the improved Priority Pass benefit, but today that benefit is matched by both the American Express Platinum and Chase Sapphire Reserve cards.
At the same time Citi removed Admirals Club access, the card issuer eliminated the free golf benefit. The benefit was a nice way for card holders to get additional value from the card. A few free rounds of golf each year help make the $450 annual fee easier to swallow. Losing this benefit isn’t a huge deal, but it’s still a reduction in benefits nonetheless.
Additionally, Citi slightly changed how the 4th night free benefit is calculated. Now the benefit based on the average nightly rate opposed to the 4th night’s actual rate. Card holders can no longer book a 3 day weekday rate and then receive a credit for a higher weekend or holiday rate. This calculation adjustment reduces the benefit slightly, but doesn’t ruin it totally. In all honestly the 4th night free benefit is still the most lucrative credit card benefit around.
Why I Downgraded To The Citi ThankYou Premier Card
Downgrading my Citi prestige card was a pretty tough decision and one that I’ve been wrestling with since I first hear rumors of the ‘enhancements‘ to the Citi Prestige card last year. Overall I really like the Citi Prestige card, but the benefits offers are simply too redundant for me now. Currently, I earn 5X points on Airfare with the Amex Platinum card and 3X points on dining with the Chase Sapphire Reserve. Both cards offer Priority Pass lounge access among other benefits which make them worth holding onto. The only reason to keep the Citi Prestige card for me is the 4th night free benefit. Sadly, I’m rarely able to use that lucrative benefit given my current travel patterns.
Downgrading to the Citi ThankYou Premier card is the most logical answer at this point. I don’t want to close my Citi account as the Prestige card is one of my oldest credit cards. In fact the account dates back to 2012 when I opened the Citi Executive AAdvantage card. Closing the account altogether negatively affects my credit score. By downgrading the card I keep the original opening date. Also, downgrading the card is an overall upgrade to my Credit Card portfolio. I don’t currently have a card that earns bonus points at Gas Stations. The Citi ThankYou Premier card ears 3X points on Gas which is a fairly large portion of my annual spend.
Final Thoughts
I’m going to miss the Citi Prestige card. It was the first ‘premium’ credit card I ever opened. It’s the card that really got me hooked on the hobby. That love of miles and points ultimately led to starting this site. It’s sad to see Citi strip such a great card of the most valuable benefits. Unfortunately, I understand why it needed to be done. What worries me more is that Citi only was able to offer those benefits for 2 years before removing them. I wonder if Chase will find themselves in a similar situation in the near future with the Chase Sapphire Reserve.
Overall, as I’ve mentioned it was a hard decision to finally downgrade the card. Now that I downgraded I’m relieved to have one less large annual fee to pay. The $95 annual fee from the Citi ThankYou Premier card is much more manageable and easier to justify. I’m going to miss the premium benefits offered from the Citi Prestige, but maintain similar benefits with other cards. Sadly, it seems I need to open a Citi Executive AAdvantage card if I wish to retain Admirals Club access.
