Strategy for Using the Citi Premier Card
The big question with any rewards card is whether it will improve your overall credit card rewards strategy. In the case of the Citi Premier Card, the analysis is straightforward.
First, the cash value of ThankYou points is 1 cent each. As a result, the signup bonus is worth $600. Transferring the points to airlines can easily take the value above 2 cents. As such, the signup bonus itself is extremely valuable and would pay for at least 6 years worth of annual fees.
Second, the $100 annual hotel savings benefit also pays for the annual fee. To qualify, you must have a single hotel stay of $500 or more, excluding taxes and fees. You also most book the hotel through thankyou.com or 1-800-THANKYOU. One stay of a couple of days should cover this.
Third, the card has a long list of 3x points, including everyday categories such as restaurants, supermarkets and gas stations. While other cards payout more on one of these categories, as a group the Citi Premier Card is very rewarding.
Finally, the question remains whether the card can serve as a one-card solution. It certainly is an excellent choice as a second card used for just its elevated reward categories. Whether it can serve as an everyday card depends on whether your overall rewards rate exceeds 2%. If not, a 2% cash back card should be your primary card.
Citi Premier Card Calculator
Use the calculator to get an estimate of rewards based on your spending habits. The calculator assumes you redeem ThankYou points for cash back worth 1 cent.
if your overall cash back percentage is 2% or higher, the card could serve as your everyday card. If not, it's best use as a secondary card.
The Citi Premier Card offers excellent rewards in exchange for a reasonable annual fee. In addition, the $100 annual hotel benefit alone can pay for the card.