Citi Prestige Card: Is It Right for You?

Citi Prestige Card: Is It Right for You?

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

Citi is an advertising partner.

With the right travel credit card, the world is your oyster. With the wrong travel credit card, however, that oyster might end up giving you a bad case of food poisoning. Thanks to its competitive annual fee and its generous benefits, the Citi Prestige® Credit Card used to be one of the good ones. A series of sweeping changes in 2019, however, left many cardholders wondering: Is the Citi Prestige® Credit Card still fresh, or is it past its prime?

Because it carries an increased annual fee, fewer protections and reduced benefits, the card clearly isn’t the catch it once was. And yet, its strong slate of benefits — including free hotel room nights and a generous travel credit — means it retains significant value, especially for die-hard travelers.

Citi Prestige® Credit Card: A premium passport to travel benefits for gung-ho globetrotters

If you’re a hometown hunker-downer who rarely ventures beyond your own neck of the woods, the travel-oriented Citi Prestige® Credit Card probably isn’t for you. But if you’re an avid adventurer who collects destinations like stamp collectors collect postage, the Citi Prestige® Credit Card is an attractive option that confers significant benefits — as long as you’re willing to pay the $495 annual fee.

Citi Prestige® Credit Card benefits

Earning points

The Citi Prestige® Credit Card is part of Citi’s ThankYou® Rewards program, wherein cardholders earn ThankYou® points that they can redeem for travel and various other rewards. Although many of the changes that Citi made to it in 2019 devalued the Citi Prestige® Credit Card, its earning structure actually improved: Cardholders now Earn 5x points at restaurants and for air travel purchases, 3x for hotel and cruise purchases, and 1x for all other purchases.

That makes it easier to earn points with the Citi Prestige® Credit Card than most other cards in its class. With The Platinum Card® from American Express, for example, cardholders earn 5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel on up to $500,000 on these purchases per calendar year and 5X Membership Rewards® points on prepaid hotels booked with American Express Travel. Terms apply. All other purchases, including hotels booked elsewhere, earn just 1 reward point per dollar. Terms apply. The Chase Sapphire Reserve® and Chase Sapphire Preferred® Card likewise pale in comparison to the Citi Prestige® Credit Card. The Chase Sapphire Reserve® offers 3X points on travel immediately after earning your $300 travel credit. 3X points on dining at restaurants including eligible delivery services, takeout and dining out & 1 point per $1 spent on all other purchases. The Chase Sapphire Preferred® Card offers only 2X points on dining at restaurants including eligible delivery services, takeout and dining out and travel & 1 point per dollar spent on all other purchases worldwide.

The following graph shows how the Citi Prestige® Credit Card compares on rewards value earned per $1 spent for the average cardholder (using our estimated points and miles values for each card's rewards program). As you can see, the card's earning power ranks low:

Average rewards earned / $1 spent

$0.014
Citi Rewards+® Card
$0.017
Citi Prestige® Credit Card
$0.02
Capital One Venture Rewards Credit Card
$0.023
The Platinum Card® from American Express
$0.025
Chase Sapphire Preferred® Card
$0.03
Chase Sapphire Reserve®
$0.03
American Express® Green Card
$0.044
American Express® Gold Card

Sign-up bonus

To sweeten the pot even further, the Citi Prestige® Credit Card offers an attractive, albeit standard sign-up bonus: New cardholders Earn 50,000 bonus points after spending $4,000 within three months of account opening.

For comparison, The Platinum Card® from American Express lets you earn 100,000 Membership Rewards® Points after you spend $6,000 on purchases on the Card in your first 6 months of Card Membership. Terms apply. Meanwhile, the Chase Sapphire Reserve® lets you Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening.

Redeeming points

Redeeming the ThankYou® points you earn with your Citi Prestige® Credit Card is easy: Using Citi’s ThankYou® Rewards portal, you can redeem points for travel, gift cards, Amazon and PayPal purchases, statement credits and cash. You also can use points to pay for purchases like gas, groceries, clothing and dining. You can even use points to pay your mortgage and your student loans, or to make charitable contributions to your favorite causes.

Because point values vary depending on how you use them, a better question than "For what can I redeem my ThankYou® points?" is "For what should I redeem my ThankYou® points?" We estimate that 1 ThankYou® point is worth only 0.5 cents if you redeem it for cash back or a statement credit, 0.8 cents if you redeem it for an Amazon purchase and 0.83 cents if you use it for shopping. If you use the same point for travel or gift cards, however, it’s worth a full penny.

Option
Example
Value Per Point
Cash Back$50 Cash Back: 10,000 points0.5 cents
Gift Cards$25 Best Buy Gift Card: 2,500 points1 cent
Redeem for Flights$450 fare: 45,000 points1 cent
Shopping$829 Apple iPad Mini: 100,000 points0.83 cents
Statement Credit$10 Statement Credit: 2,000 points0.5 cents
Pay with Points$150 Credit: 20,000 points0.75 cents
Amazon$80 purchase: 10,000 points0.8 cents

Overall, redemption values are superior to The Platinum Card® from American Express but inferior to the Chase Sapphire Reserve® and Chase Sapphire Preferred® Card. The Platinum Card® from American Express, for example, offers redemption values as low as 0.007 cents per point while Chase cards generally value points at 1 cent across the board — with the exception of travel, which is actually worth more. The Chase Sapphire Reserve® card offers 50% more value when points are redeemed for travel (1.5 cents per point, such that 50,000 points are worth $750 in travel instead of $500) while the Chase Sapphire Preferred® Card offers 25% more value (1.25 cents per point, such that 60,000 points are worth $750 in travel instead of $600).

Transferring points

If you really want to maximize the value of your rewards, consider transferring them to an external loyalty program for the purpose of funding travel. Citi partners with the following 16 airlines, each of which allows you to transfer 1,000 ThankYou® points in exchange for 1,000 miles (note: you must transfer points in increments of 1,000):

  • Aeromexico Club Premier
  • Air France/KLM Flying Blue
  • Avianca LifeMiles
  • Cathay Pacific Asia Miles
  • Emirates Skywards
  • Etihad Guest
  • EVA Air
  • JetBlue True Blue
  • Jet Airways JetPrivilege
  • Malaysia Airlines Enrich
  • Qantas Frequent Flyer
  • Qatar Privilege Club
  • Singapore Airlines KrisFlyer
  • Thai Airways Royal Orchid Plus
  • Turkish Airlines Miles & Smiles
  • Virgin Atlantic Flying Club

When you transfer ThankYou® points, we estimate that your point value exceeds 1.25 cents per point, which easily makes this the best use of your points.

The Platinum Card® from American Express also allows you to transfer points to travel industry partners at a 1:1 ratio in 1,000-point increments, as do the Chase Sapphire Reserve® and Chase Sapphire Preferred® Card. American Express has 19 airline partners compared to Citi’s 16 — including several airlines that Citi does not have a partnership with, like Air Canada, British Airways, Delta, Hawaiian Airlines and Iberia. Chase, on the other hand, has only 10 airline partners, but counts among them two of the nation’s biggest domestic airlines, United and Southwest. Both American Express and Chase also have hotel partners; the former allows you to transfer points to Choice Hotels, Hilton and Marriott, and the latter to Hyatt, InterContinental Hotel Group and Marriott.

If transferring points is your ultimate goal, your ideal card will depend on which loyalty programs you prefer and whether you want to use your points for airline miles or hotel room nights.

Fourth-night-free benefit

The Citi Prestige® Credit Card’s signature benefit is its Complimentary 4th Night hotel benefit. You get a free fourth night at the hotel of your choice when you stay at least four consecutive nights in a room that you book and prepay for via Citi’s ThankYou® Rewards portal. Unfortunately, you can only use this benefit two times per calendar year. Still, if you stay at a five-star hotel where room rates are $700 per night, that means you can get $1,400 in free hotel stays per year — which easily justifies this card’s $495 annual fee.

Keep in mind: Because you must book stays through the ThankYou® Rewards portal, you won’t be able to earn hotel loyalty points or avail yourself of elite status benefits.

Travel credit

The Citi Prestige® Credit Card automatically reimburses cardholders up to $250 per year for travel-related expenses. The $250 travel credit is applied as statement credits toward purchases from airlines, hotels, car rental agencies, travel agencies, tour operators, ferries, railways, subways, taxis, limousines, cruise lines, tolls, parking garages and bus lines.

American Express and Chase, likewise, offer travel credits with their premium cards. The Platinum Card® from American Express, for example, features a $200 airline credit per year that applies only to incidental airline fees, such as checked bags and in-flight refreshments. Terms apply. The Chase Sapphire Reserve®, meanwhile, offers a $300 annual travel credit that can be used for virtually any travel expense, just like that of the Citi Prestige® Credit Card (the Chase Sapphire Preferred® Card does not offer a travel credit).

Limited time offer around COVID-19: Because of the novel coronavirus, Citi has temporarily expanded its travel credit so that it also can be used at supermarkets and restaurants — including for delivery and takeout. Purchases are eligible for reimbursement with the Citi Prestige® travel credit through the end of 2020.

Lounge access

When you have a Citi Prestige® Credit Card, you receive a complimentary Priority Pass™ Select membership that gives you access to more than 1,300 airport lounges around the world for you and up to two guests and/or immediate family members. Because a Priority Pass™ membership costs up to $429 per year out of pocket, this is a significant benefit.

You similarly can access Priority Pass™ lounges when you have The Platinum Card® from American Express or the Chase Sapphire Reserve® card. The former, however, also gives you access to American Express’s own Centurion® and International American Express lounges, as well as Delta Sky Club® lounges.

Value Penguin’s verdict: A high-cost — but also high-value — travel card

At an annual fee of $495 per year, the Citi Prestige® Credit Card is a big investment. Although it used to be larger, the return on that investment remains impressive for cardholders who avail themselves of the many benefits. For frequent travelers who like to rest their heads at premium properties, the fourth-night-free benefit alone makes this card an asset. Add to that the versatile $250 travel credit, Priority Pass™ lounge access, generous point transfer policy and ample rewards earning opportunities, and this card easily justifies its cost.

However, that doesn’t mean the Citi Prestige® Credit Card is automatically the right card for you. If most of your travel is domestic, for example, the Citi Prestige® Credit Card probably won’t get you very far. After all, most Priority Pass™ lounges are located in overseas airports, and most of Citi’s airline partners are international carriers. Domestic travelers, therefore, might be better off with The Platinum Card® from American Express or the Chase Sapphire Reserve® card, both of which have more benefits for those traveling within the United States, not to mention the ability to transfer reward points to hotel loyalty programs (in case lodging is where you most covet savings).

If you look at only the math, the best travel cards to have are the Chase Sapphire Reserve® and Chase Sapphire Preferred® Card, both of which offer superior redemption value for travel. If you look at the balance of features and benefits, however, the Citi Prestige® Credit Card is a competitive offering that will serve most travelers very well. (Emphasis on travelers — if you’re an infrequent traveler, it would be hard to justify the cost of the Citi Prestige® Credit Card, in which case you should look to a non-travel card with rewards that better complement your goals.)

Alternatives to the Citi Prestige® Credit Card

Although the Citi Prestige® Credit Card is an excellent card for many travelers, it’s not perfect. Depending on your unique spending patterns and travel goals, the following alternatives might suit you better.

Travel in style with plush perks

The Platinum Card® from American Express

$695

See Pay Over Time APR

Excellent/Good

  • Earn 100,000 Membership Rewards® Points after you spend $6,000 on purchases on the Card in your first 6 months of Card Membership.
  • Plus, earn 10x points on eligible purchases on the Card at restaurants worldwide and when you Shop Small® in the U.S., on up to $25,000 in combined purchases, during your first 6 months of Card Membership.
  • Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year.
  • Earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel.
  • $200 Hotel Credit: Get $200 back in statement credits each year on prepaid Fine Hotels + Resorts® or The Hotel Collection bookings with American Express Travel when you pay with your Platinum Card®.
  • $240 Digital Entertainment Credit: Get up to $20 in statement credits each month when you pay for eligible purchases with the Platinum Card® at your choice of one or more of the following providers: Peacock, Audible, SiriusXM, and The New York Times. Enrollment required.
  • New! American Express has expanded The Centurion® Network to include 40+ Centurion Lounge and Studio locations worldwide. Now there are even more places your Platinum Card® can get you complimentary entry and exclusive perks.
  • $200 Airline Fee Credit: Get up to $200 in statement credits per calendar year in baggage fees and more at one qualifying airline.
  • $200 Uber Cash: Enjoy Uber VIP status and up to $200 in Uber savings on rides or eats orders in the US annually. Uber Cash and Uber VIP status available to Basic Card Member only.
  • $300 Equinox Credit: Get up to $25 back each month on select Equinox memberships. Enrollment required.
  • $179 CLEAR® Credit: Use your Card and get up to $179 back per year on your CLEAR® membership.
  • $695 annual fee.
  • Terms Apply.

The Platinum Card® from American Express is a premium travel card that unlocks a premium travel experience for cardholders who want to feel like VIPs. Although it’s a little more expensive than the Citi Prestige® Credit Card (the annual fee is $695 compared to $495) and less generous with its rewards (while both cards offer a 5:1 points ratio on travel purchases, the Citi Prestige® Credit Card has fewer restrictions and more bonus categories), it dominates when it comes to value-added benefits.

Both cards, for example, allow you to transfer reward points to partner airlines’ loyalty programs, but American Express has more partners, which means more opportunities for flight upgrades and other perks. Likewise, both cards offer access to Priority Pass™ lounges (enrollment required), but only The Platinum Card® from American Express gives you access to the American Express Global Lounge Collection®, including ultraplush Centurion® lounges. Finally, The Platinum Card® from American Express confers Gold elite status with both Marriott Bonvoy and Hilton Honors loyalty programs, which entitles cardholders to upgrades and extras when they stay at Marriott and Hilton hotels (enrollment required).

If you value maximizing your experience over minimizing your costs, then The Platinum Card® from American Express is the way to go.

For rates and fees of The Platinum Card® from American Express, please click here.

Good benefits, even better value

Chase Sapphire Reserve®

  • On Chase's Secure Website

$550

16.99%-23.99% Variable

Excellent

  • Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $900 toward travel when you redeem through Chase Ultimate Rewards®
  • $300 Annual Travel Credit as reimbursement for travel purchases charged to your card each account anniversary year. Through December 31, 2021, gas station & grocery store purchases will also count towards earning your Travel Credit
  • 3X points on travel immediately after earning your $300 travel credit. 3X points on dining at restaurants including eligible delivery services, takeout and dining out & 1 point per $1 spent on all other purchases
  • Get 50% more value when you redeem your points for travel through Chase Ultimate Rewards®. For example, 60,000 points are worth $900 toward travel
  • With Pay Yourself BackSM, your points are worth 50% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories
  • 1:1 point transfer to leading airline and hotel loyalty programs
  • Access to 1,300+ airport lounges worldwide after an easy, one-time enrollment in Priority Pass™ Select and up to $100 application fee credit for Global Entry or TSA Pre✓®
  • Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more

Among premium travel cards, the Chase Sapphire Reserve® card offers the most bang per buck, thanks to its generous redemption value: By our estimates, the Chase Sapphire Reserve® card confers more valuable points, worth 1 cent for most redemption categories, and 1.5 cents per point for travel redemptions.

The Chase Sapphire Reserve® card also bests the Citi Prestige® Credit Card's travel credit by $50, offering a $300 annual travel credit that is equally versatile.

Although its advantages don’t come cheap — it has an annual fee of $550, compared to $495 for the Citi Prestige® Credit Card — the Chase Sapphire Reserve® card promises to hit the spot for value-seekers, who save plenty of pennies in exchange for spending a few extra on admission.

Solid rewards without the steep price

  • On Chase's Secure Website

If you blush at the high annual fee that comes with premium travel cards, a mid-tier card like the Chase Sapphire Preferred® Card card might be exactly what you’re looking for. Like the Chase Sapphire Reserve® card, it offers an enviable redemption value that exceeds that of most other cards — 1.25 cents per reward point when points are redeemed for travel and 1 cent per reward point when they’re redeemed for anything else — as well as the ability to transfer reward points to airline and hotel partners’ frequent traveler programs. At only $95, its annual fee is more affordable than the Chase Sapphire Reserve® card and the Citi Prestige® Credit Card.

Of course, a lower annual fee means you also get fewer benefits. The Chase Sapphire Preferred® Card only offers 2X points on dining at restaurants including eligible delivery services, takeout and dining out and travel & 1 point per dollar spent on all other purchases worldwide By contrast, the Chase Sapphire Reserve® card offers 2X points on dining at restaurants including eligible delivery services, takeout and dining out and travel & 1 point per dollar spent on all other purchases worldwide Meanwhile, the Citi Prestige® Credit Card outperforms both: Earn 5x points at restaurants and for air travel purchases, 3x for hotel and cruise purchases, and 1x for all other purchases. Still, it’s a solid offering at a much lower price point for budget travelers who want reliable rewards but demand fewer frills.

The information related to the Citi Prestige® Credit Card has been independently collected by ValuePenguin and has not been reviewed or provided by the issuer of this card prior to publication.

For rates and fees of The Platinum Card® from American Express, please click here.

These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

Advertiser Disclosure: The products that appear on this site may be from companies from which ValuePenguin receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). ValuePenguin does not include all financial institutions or all products offered available in the marketplace.

How We Calculate Rewards: ValuePenguin calculates the value of rewards by estimating the dollar value of any points, miles or bonuses earned using the card less any associated annual fees. These estimates here are ValuePenguin's alone, not those of the card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer.

Example of how we calculate the rewards rates: When redeemed for travel through Ultimate Rewards, Chase Sapphire Preferred points are worth $0.0125 each. The card awards 2 points on travel and dining and 1 point on everything else. Therefore, we say the card has a 2.5% rewards rate on dining and travel (2 x $0.0125) and a 1.25% rewards rate on everything else (1 x $0.0125).