When and why it may be time to switch from the Citi Strata Premier to the Citi Rewards+

Citi is a promotional partner of TPG.

At times, a card in your wallet may no longer meet your needs as it once did. Luckily, there are alternatives to simply canceling your card, which could negatively impact your credit score and result in the loss of accumulated rewards.

Let’s discuss when and why it might be wise to switch to a different card from the same issuer. We’ll focus on the Citi Strata Premier℠ Card (refer to rates and fees), a well-liked mid-tier travel credit card with a $95 annual fee that took the place of the Citi Prestige card in 2024.

While many cardholders likely find enough value in this card to justify the annual fee, some may feel its appeal is fading. For example, the card offers an annual $100 hotel savings benefit that is somewhat restricted, as it requires booking through Citi ThankYou and spending a minimum of $500 (not including taxes and fees) to access the statement credit. Although the card’s points transfer options can be beneficial, you might prefer to switch to a different transferable points program or focus on earning cash-back rewards instead.

No matter your reasons, let’s explore when and why cardholders might consider downgrading from the Citi Strata Premier to the no-annual-fee Citi Rewards+® Card (check rates and fees).

You retain your Citi ThankYou points

Instead of canceling your Citi Strata Premier card, opting to downgrade to the Citi Rewards+ guarantees that your hard-earned ThankYou® points remain intact.

However, keep in mind that your ThankYou points will lose considerable value once transferred to your Citi Rewards+ balance. This is because the Citi Strata Premier grants access to points transfer options with over 15 airline loyalty programs, getting you closer to TPG's July 2024 valuation of 1.8 cents per point.

The Citi Rewards+ card doesn’t support points transfers, but you can transfer your points to JetBlue TrueBlue or Wyndham Rewards at a less favorable 5:4 ratio, compared to the 1:1 ratio offered by the Strata Premier. Additionally, transferring to Choice Privileges with the Rewards+ yields a 1:1.5 ratio, versus the 1:2 ratio with the Strata Premier.

However, if the lack of points transfer options isn't a concern for you, your Citi ThankYou points will be valued at 1 cent each—or even less—with the Rewards+ card. As a cash-back card, your redemption choices include purchasing gift cards at 1 cent per point or using points for shopping at Amazon and Best Buy, which often yields less than 1 cent per point.

Nonetheless, having these redemption alternatives is preferable to losing your points entirely.

The sign-up bonus for the Citi Rewards+ is relatively modest

New applicants for the Citi Rewards+ can earn a sign-up bonus of 20,000 bonus points after spending $1,500 within the first three months of account opening. Additionally, for a limited time, you can earn 5 ThankYou Points per $1 spent on hotels, car rentals, and attractions (excluding flights) booked through the Citi Travel℠ portal until December 2025. This bonus is valued at $360 based on TPG's June 2024 valuations.

In comparison, the Citi Strata Premier provides 70,000 bonus points after you spend $4,000 in the first three months of account opening—valued at $1,260 according to TPG's June 2024 valuations (a higher offer might be available at Citi.com).

Building on the previous point (get it?), downgrading to the Citi Rewards+ allows you to keep any ThankYou points earned through your Citi Premier, thus eliminating the risk of losing your rewards balance entirely.

You’ll retain some of the same bonus categories—with a rounding benefit.

It’s true that the Citi Strata Premier offers one of the top rewards rates, granting bonus points for both travel and everyday spending:

• 3 miles per dollar on: air travel, hotels, restaurants, supermarkets, gas stations, and EV charging
• 1 mile on all other purchases

Although switching to a no-annual-fee card typically results in a loss of full earning potential, the Citi Rewards+ retains some of this rewards rate, offering 2 points per dollar on supermarkets and gas stations (up to the first $6,000 spent annually, then 1 point per dollar) and 1 point per dollar on other purchases.

If your spending, particularly on travel, has significantly decreased since the pandemic began, the Rewards+ card will still allow you to earn bonus points on two frequently used purchase categories.

One distinctive feature of the Citi Rewards+ is the 10% points bonus benefit, which means all purchases will round up to the nearest 10 points. For example, if you buy a $1 bottle of water from a vending machine, you’ll earn 10 points on that purchase, even though it would typically earn just 1 point with most other cards.

While this benefit might seem minor, the opportunities for earning points can accumulate over time. Thus, the Citi Rewards+ can also serve as a practical card for those small, everyday purchases you make regularly.

You'll automatically receive 10% of all the points you redeem back.

A unique advantage of the Citi Rewards+ that the Strata Premier lacks is the opportunity to get 10% of points back on the first 100,000 points redeemed each calendar year.

For example, if you redeem 50,000 points with your Rewards+ in a year, you’ll get back 5,000 points, equivalent to $50 for gift cards. While this may not be a substantial benefit, it’s a straightforward perk that requires no effort on your part—ideal for a no-annual-fee card.

Maximize your rewards by using both cards.

Here's an alternative approach: Use both cards together instead. Here’s a glimpse of the advantages of this strategy:

• Obtain an extra sign-up bonus (as long as you meet Citi's eligibility requirements)
• Accumulate more Citi ThankYou points by utilizing your Citi Strata Premier for 3 miles per dollar (on air travel, hotels, restaurants, supermarkets, gas stations, and EV charging)
  and the Citi Rewards+ for non-bonus and smaller purchases
• There’s no extra annual fee for adding the Citi Rewards+ to your card lineup

Incorporating the Citi Rewards+ can enhance the value of carrying your Citi Strata Premier, making it a worthwhile consideration if you're hesitant about leaving the ThankYou program.

In summary

TPG team members are accustomed to regularly assessing their wallets, making choices to retain, downgrade, or cancel cards when it’s time to face an annual fee. If you've had the Citi Strata Premier for a while and the $95 annual fee (refer to rates and fees) is about to appear on your statement, remember that downgrading to the Citi Rewards+ is a practical option.