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Our “must read” on credit cards: The Pros and Cons of Credit Cards
Airlines, hotels and, well, just about everyone now, have proprietary points that you can use only for their products. Got American Airline miles? Good luck using them on United; they’ll only be good for American and American’s partners. But ThankYou Points (Citibank Points) are a different story.
That’s why I find credit card points to be so useful. All of the major credit card companies have their own rewards schemes. The major ones are American Express Membership Rewards, Chase Ultimate Rewards and Citibank ThankYou Points. Each bank has several partners that you can transfer to, instead of using them for just one reward. Today, I’m going to hit on Citi ThankYou Points (TYP) and do the other two at a future date.
MGM CASINO BONUS
$800 IN MGM GIFT CARDS: HERE’S HOW
Earning Citibank ThankYou Points
There are two main ways to earn Citi ThankYou Points: You can have a bank account with them or a credit card. The bank account rewards can be painful. Points are slim and you must have several relationships with them. Unless you already have a Citi account, it is not worth it to open one.
Credit cards are better. Depending on where and how much you spend, the points can range from not particularly beneficial to extremely valuable. There are a range of cards from Citi, but the most valuable one is the Citibank Premier card.
Citi Premier: Currently has an 80,000 point sign-up bonus when you spend $4,000 in the first three months as a cardholder. The bonus is good for anything ranging from 80,000 American Airlines miles (or any of 16 other airlines) to $800 in gift cards to MGM properties (or about 100 other merchants). the card also has several other benefits, including:
- 3X points for purchases at restaurants, supermarkets, gas stations and air travel/hotels.
- An annual $100 credit on a hotel stay of $500 or more when booked through Citi’s travel portal, which more than offsets the $95 annual fee..
Using Citibank ThankYou Rewards
There are several ways to use Citibank Points, but only a few of them will give you value for your point. I’ll cover the main redemption options here and let you know what’s worth it and what isn’t.
A Few Options that Caught Our Attention — Las Vegas, or Anywhere Else
- If you are planning on going to Las Vegas, this card is particularly helpful. 80,000 points can be transferred into $800 worth of MGM gift cards, which could cover several nights and/or a few good meals at an MGM property restaurant. You can read a little more about it here.
- Between now and November 13, you can transfer points from Citi to American Airlines, which opens the whole world to you through the oneworld alliance. Domestic awards can be a bargain, starting at 12,500 miles one-way (or 7,500 if you are flying less than 500 miles). 80,000 points would get you 3 round-trips domestically, with an additional $50 to spend at an MGM property if you are heading to Las Vegas.
- If you’re going farther away, Europe starts at 45,000 miles round-trip (from the US) and Asia begins at 65,000 round-trip. If you’re lucky, you’ll end up on Cathay Pacific to Asia!
Redeeming for Cash/Statement Credit
The “easiest” way to redeem points is for cash: You can redeem points for statement credits or cash. Similar to MGM above, with the Citi Premier card, you’ll get a penny per point. Other cash substitutes, such as shopping, will get you similarly reduced rewards. Please don’t use your points this way unless it’s an emergency. Note that other Citi cards may have lower conversion rates.
Gift Cards
We’re getting better here. Citi has an extensive list of gift card partners, from AMC Theaters to MGM to Yard House, that allow you to purchase gift cards at the rate of a penny each. Thus, the 80,000 bonus points with the Citi Premier convert to $800 worth of goodies. That’s not a bad exchange rate, particularly if you acquired the points by spending on your card in a category that offers bonus points.
Be sure to also read: POINTS AND MILES – JUST ANOTHER CURRENCY?
Exchange Your Points for Miles
Another option for your ThankYou Points is to transfer them into an airline program’s miles. You have 17 programs to choose from (as well as the less attractive Shop Your Way). The airlines are some of the nicest from around the world, meaning that these points come with a global set of opportunities. All points exchange at a 1:1 rate for Citi Premier cardholders. The airline programs are:
Asia Miles (Cathay Pacific)
Life Miles (Avianca)
Etihad Guest (Etihad)
Eva Air
Flying Blue (Air France, KLM)
Garuda
TrueBlue (JetBlue)
Air Enrich (Malaysia)
Qantas
Qatar
KrisFlyer (Singapore)
Royal Orchid (Thai Air)
Miles & Smiles (Turkish)
Flying Club (Virgin Atlantic)
Citi says that it can take up to 14 days for your points to transfer, but in most cases, it’ll be a day or two, at most. A few of them have instantaneous transfers.
Your first reaction might be the same as mine was: With the exception of American and JetBlue, they’re all international carriers.
And then your second reaction should be to send Citi a thank you note (Hmm, thank you note for ThankYou points. Interesting.). Why is that? Because airline alliances often allow you to book a flight on an international carrier for fewer miles than you would on the US carrier in the same alliance.
Book the ticket using miles through Delta, you’ll pay 5X as many miles as you would if you booked through FlyingBlue. Welcome to the wacky world of airline revenue management.
For example, the image shows a flight from Boston to London in business class. You can book this flight through either Air France or Delta. Same flight, same plane, same class of service. Same everything. Oh, except the price. If you book the ticket using miles through Delta, you’ll pay 5X as many miles as you would if you booked through Air France FlyingBlue. Welcome to the wacky world of airline revenue management.
Not Just International Travel
Don’t feel like flying internationally? Don’t worry, you can also use miles from an international carrier to fly on a domestic carrier, frequently at a discount to what the US carrier would charge.
Got any ThankYou Points ideas to share? We’re always happy to hear how your are using your Citibank Points. Also, be sure to check out the LVA Travel Forum (message board) and LVA Travel Facebook Group for great advice from the community.
