Citi Thank You Redemptions? No Thanks
If you've been reading this site for any length of time, then you already know that I'm a big fan of CitiBank rewards credit cards. One particularly generous offering has been the 5% off all purchases using the Driver's Edge card. Earlier this year, they increased the reward limit on this card from $500 to $1,000. Later, they even introduced a plan where you can earn rewards just for driving. When I first got it, the primary limitation of this credit card was that you could only redeem your rewards when you purchased a car (new or used) or had some sort of service done on your car. Since that time, however, I've heard that this card became a part of the Citi Thank You Redemptions Network. So what does this mean for cardholders?
In short, it means that you can trade your reward credits for things like restaurant or store gift cards, merchandise, or even travel. Just to give you a feel for the breadth of merchants that are included, I'll list a few catgories/merchants...
Department Stores:
Banana Republic
Gap
JC Penney
K-Mart
L.L. Bean
Land's End
Macy's
Old Navy
Sears
Target
Entertainment:
Blockbuster
Borders
Napster
Waldenbooks
Restaurants:
Applebee's
Chili's
Olive Garden
Red Lobster
Smith & Wollensky
Starbucks
TGI Friday's
Specialty:
Bed, Bath & Beyond
Best Buy
Circuit City
ExxonMobil
Home Depot
Shell
Sharper Image
Staples
Toys'R'Us
They also offer statement credits (i.e., money off your credit card bill), charitable contributions, the ability to buy down your APR, and more. On the surface, this sounds great... After all, things like gift cards and statement credits are much more cash-like than are reward dollars that are tied to automotive purchases or service. The problem here is the exchange rate. Each dollar of Driver's Edge reward credit that you've earned is equal to 100 Thank You points, and you can trade these points for gift cards ranging in value from $5 to $5,000. But at the lower end (anything below $50) you get a bum deal. $5 gift cards go for 1,000 points ($10), $10 gift cards go for 1,500 points ($15), and $25 gift cards go for 3,000 points ($30). It's not until you get to $50 that they start giving you a dollar-for-dollar deal. Statement credits are even worse. 3,000 points ($30) will buy $15, and it goes all the way up to 38,000 points ($380) for $250 in credit. What about charitable donations? Same deal as for gift cards. Anything under $50 and you're getting screwed. Travel certificates are priced similarly.
If you can't find anything you like from the above merchants, you can choose from a variety of merchandise (mostly electronics). Here again, the prices are generally pretty bad. For example, a WaveBird wireless controller for the Nintendo GameCube goes for goes for 4,500 points ($45). Yet I bought one of these for my kids about six months ago for $26.
The bottom line: Unless you're looking for things like bigger store gift cards ($50 and above) this is a terrible deal. But if you're interested in participating, you can simply hop on over to the Thank You Redemptions website and register. Alternatively, you can give them a call at 1-877-7REDEEM.
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"Citi Thank You Redemptions? No Thanks" was first published at fivecentnickel.com
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I disagree with your post. I don't have any experience with the Driver's Edge card, but the amount back (5%) was so large it's no surprise it was limited to just auto-related stuff. But I don't think the other Citi Cards are as bad as you make them out to be, and this is why:
First, you have to realize that 1% is about the best you can expect for anything that gives you any sort of leeway in what you get back. Second, the majority (if not all) of the Citi Cards have some sort of "bonus" feature---for example, there are cards that give you 5 points for every dollar spent (5%) on grocery, gas, or convenience store purchases, or 3 points for every dollar spent (3%) on restaurant purchases.
So, with the Citi cards, depending on your spending habits, you care getting more than 1% back. That makes them better than the normal reward card.
As to the rewards, of course, any sort of merchandise is a rip off (same everywhere). As to the 5,000 point threshold---sure, if you try to redeem for something under 5000 points, the deals are not good. But 5000 isn't really that hard to reach. PLUS, with most Citi cards, they spot you a certain amount of "free" points right at the beginning as an enticement to sign up for the card. I recently signed up for one and got a 10,000 point bonus---that's a $100 gift card for merely signing up for their card and using it once. I think that makes it a HOT deal. Money (gift card) for nothing.
My philosophy is always to get 25,000 points on one of these cards b/c that usually gets you a roundtrip plane ticket (with some cap, like $400). Then, when booking my next trip, if the lowest price I find is over $250, I use the points (b/c then I'm getting even higher than the plus 1% back I was getting before). If the points have been sitting around for a while and I'm getting anxious (as with everything in this world, the terms and conditions are subject to change without notice), I'll just cash it in for some gift cards.
All in all, I think they're great deals for anyone who uses their credit cards for their normal purchases (---as a way to control cash flow, of course, and not as a way to overspend).
Don't get a Citibank credit card. They are liers. I had a reward card-I used it exclusively as the only card I used. I never saw a dime from it. All I received from their horrible company (aka) customer service peoples was lies about where my reward (aka lack there of was). Citibank also charged me bogus late fees.
Citibank are a bunch of scammers! I signed up for the Rewards card with a promise of 5,000 bonus points after my first purchase. Well several months later I still have not received the 5,000 points. When I contacted citibank they told me that they have no record of that offer being attached to my account. They said I should send them a copy of the offer I responded to. As if I saved a newspaper ad from months ago !?! After this happened to me I have done some research and found out this has happened to many others. I'll be canceling my citibank cards after I pay off my balance this month. I wonder how many people have been ripped off like this. Beware!
