CITIBANK IS BACK, BABY!
Citi has done little with its credit card program over the past two years or so, but that’s finally changing. They’ve recently upgraded their ThankYou Points program by adding some new airline transfer partners, and now they’ve introduced a 2% cash back card. It’s 1% when you make a purchase and then another 1% when you pay for it. There is no annual fee.I’ve long said the Fidelity Amex is the one card everybody should have, but assuming this card is all it’s cracked up to be, I’d have to add it to the must-have list. I haven’t applied for this one yet, but I did email to ask if I could convert an existing TYP card to this one, and if so I most certainly will convert.
The fact of this card’s introduction bodes well for credit card enthusiasts. Citi’s been sleeping for a while, but after we’ve seen big moves from two different card products in a short period of time, it’s clear that senior management aims to claim some market share.
Surveying the current marketplace, we have Chase (currently killing it), Amex (losing its edge but still fighting), Chase (recently awakened behemoth), Wells (hard-charging upstart), Bank of America (sleepy behemoth), Barclaycard (hopefully ticked off that they’re losing the USAir card), Synchrony (recently spun off from GE Capital, ready to make a name for itself), Comenity (slowly building itself up), Discover (apparently building a rep for good customer service) and Capital One (above all this petty sign-up bonus stuff). That’s a lot of banks eager to gain market share, plus our central bank is keeping the cost of funds extremely low, plus the market’s pretty saturated and it takes a lot to get the average customer to switch cards.
What does the preceding paragraph mean for you? I’m going to make a prediction: the next 12 months will be tremendous for credit cards. Maybe not for manufactured spending, but for sign-up bonuses, spending bonuses, new products, everything. Maybe I’m wrong, and if so, feel free to come back here in 12 months and gloat. Or if you want, go ahead and get a head start on your gloating in the comments below.
What do you all think? Doom and gloom, or the future’s so bright you gotta wear shades? And who else besides me is getting this card?
Just got approved for this card. Makes a run against the Fidelity AmEx and the Barclays Arrival.
Will be converting to it when my Executive is due in January. Seems to be a nice product with no AF. Since the MS is mostly done in the territory of Old Amex Blue, not a candidate for MS unless you do not have the Old Amex Blue. This will definitely be leverage for the Annual Fee waiver call to Barclays when the Arrival fee is due.
Card might be interesting for non MSer but I can’t get too excited about it given it will likely be DOA for AMEX GCs.
Will Citi allow a product-change from a partner-branded card to a Citi only card?
Good question, I’ve seen a few people mention that they were asking about it, but I haven’t seen any answers yet.
Are you kidding? Citi has been killing it with the AA Exec’s. 2% cards are becoming dime a dozen. To think BoA closed the Schwab 2% card . . .
Yes! Completely forgot to mention that one, thanks.
Citi does not allow product changes from partner branded cards. You can only downgrade to another AAdvantage card, or cancel the card. Your other option is to apply for a card, and call to ask the credit line be transferred from the AA card.
This should be a great complement to the old Amex Blue for those (mall) purchases that don’t fall into the 5% Amex categories.
Thanks Susan!
A credit card company offering additional cashback for paying your bill? We have truly entered the twighlight zone.
I think that breaking up the 2% like that is Citi’s way of lowering reward costs, since anybody who writes off won’t get the extra 1%, and anybody who carries a balance will have their rewards deferred into some point in the future.
I have converted AA cards to Dividend or ThankYou cards several times, most recently mid-Aug. Even Hilton Visa Signature us an option. Original account must be open 12 months, and my AA Exec accounts have not reached that yet.
Actually, Susan is incorrect. I just did a product change to this card from my Citi Aadvantage American Express.