When (and why) should you downgrade from Citi Strata Premier to Citi Rewards+

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When (and why) should you downgrade from Citi Strata Premier to Citi Rewards+

Citi is an advertising partner of TPG.

Sometimes, a card you have in your wallet just isn’t as useful to you as it once was. Luckily, there are other options besides paying in person. cancel your cardpossibly possible affect your credit score and lose all the rewards you have accumulated.

Let’s talk about when (and why) they should. downgrade to a card with the same publisher. We will start with Citi Strata Premier℠ Card (see prices and fees), a common midrange travel credit card with an annual fee of $95 replacing the Citi Prestige card in 2024.

While it’s likely that most cardholders will get enough value from the card to justify paying this fee, for some it may start to lose its appeal. For example, the card Annual hotel savings benefit is $100 somewhat limited, requires you to book through Citi ThankYou And spend at least $500 (excluding taxes and fees) for the statement credit to be activated. While the card opportunity to transfer points can be lucrative, you may want to switch to another career Transfer Point Program or earn cashback rewards instead.

Whatever your motivation, let’s break down when (and why) cardholders might want to downgrade from the Citi Strata Premier to a no-annual-fee card. Citi Rewards+® Card (see prices and fees).

You keep your Citi ThankYou points.

Instead of cancelling your Citi Strata Premier card, downgrade Citi+ Rewards ensuring that you won’t lose any of your hard-earned ThankYou® points in the process.

However, be aware that your ThankYou points will lose significant value once they are transferred to your Citi Rewards+ balance. That’s because Citi Strata Premier unlocks Opportunity to transfer points to over 15 airline loyalty programsBringing you closer to TPG’s July 2024 exam valuation 1.8 cents per point.

Use your AAdvantage miles to book domestic business class accommodation with 25,000 Etihad Guest miles one way. ZACH GRIFF/THE POINTS GUY

Citi Rewards+ doesn’t allow transfers, but you do have the option to transfer your points to JetBlue TrueBlue or Wyndham Rewards at a less attractive 5:4 ratio compared to 1:1 with Strata Premier. You can also transfer your points to Choice Privileges at a 1:1.5 ratio with Rewards+ compared to 1:2 with Strata Premier.

But if losing points doesn’t matter to you, your Citi ThankYou points are worth 1 cent each—or less—with the Rewards+ card. As a cash-back card, your redemption options are gift cards for 1 cent each or shopping with your points at Amazon and Best Buy for less than 1 cent each.

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However, having these points redemption options is better than losing all your points.

With Citi Rewards+, new applicants can earn a sign-up bonus of 20,000 bonus points after they spend $1,500 on purchases with their card within three months of opening their account. Plus, for a limited time, earn 5 ThankYou Points for every $1 spent on hotels, car rentals, and attractions (excluding airfare) booked on the Citi Travel℠ portal through December 2025. This bonus is worth $360, according to TPG’s June 2024 report. valuation.

For comparison, Citi Strata Premier offers 70,000 bonus points after spending $4,000 in the first three months of account opening—worth $1,260 according to TPG’s June 2024 report valuation (higher rates may be available through Citi.com).

Continuing with the previous point (get it?), you’ll retain any ThankYou points earned through Citi Premier when you downgrade to Citi Rewards+, completely eliminating the risk of losing your rewards balance.

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

Admittedly, Citi Strata Premier Comes with one of the best rewards levels, giving bonus points on both travel and everyday purchases:

While downgrading to a no-annual-fee card typically means you lose all your earning potential, Citi Rewards+ retains some of that reward by offering 2 points per dollar spent at supermarkets and gas stations (up to the first $6,000 spent per year, then 1 point per dollar) and 1 point per dollar on other purchases.

If your spending has dropped significantly — especially on travel — since the pandemic began, Rewards+ will ensure you still earn bonus points on two popular purchase categories.

What is unique about Citi+ Rewards is a 10% points bonus. In other words, all purchases will be rounded up to the nearest 10 points. To illustrate this, imagine you buy a $1 bottle of water from a vending machine. You will earn 10 points for that purchase, even though this purchase would typically only earn 1 point with most other cards.

While this benefit is small, the points can add up over time, making Citi Rewards+ a useful card for small, frequent purchases you’ll make in your everyday life.

Related: Citi Rewards+ Review

You will automatically receive 10% of the total points you redeemed back.

Another unique benefit of Citi+ Rewards not found on Elite is the ability to receive 10% points back on the first 100,000 points you redeem each calendar year.

You can redeem your points on Citi Rewards+ for gift cards. SUMMER HULL/THE POINTS GUY

Let’s say you redeemed 50,000 Rewards+ points in a year. You’d get 5,000 points back, worth $50, toward gift cards. While not a huge perk, it’s an easy perk that doesn’t require any work on your part—a great feature for a card with no annual fee.

Related: Citi Strata Premier Review

Double both cards

Here’s an alternative strategy: Double down with both cards. Here’s a preview of the benefits of doing so:

Get extra bonus when you sign up (as long as you meet Citi’s criteria)

Earn more Citi ThankYou points by using Citi Strata Premier for 3 miles for every dollar earned (on planes, hotels, restaurants, supermarkets, gas stations and EV charging)
and Citi+ Rewards for non-bonus and small purchases
There is no additional annual fee associated with adding Citi Rewards+ to your wallet.

Adding Citi Rewards+ can make your Citi Strata Premier card more valuable, so it’s definitely worth considering if you’re on the fence about dropping your ThankYou program.