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Citi has made a move to restrict welcome offers on the AA family of cards to one bonus every 48 months. Although we haven't seen the new terms and conditions applied to Citi's ThankYou® Rewards products, there's a good chance the rule will be applied across all cards in the future. While this could be bad news for some, the new rule may actually end up giving you more options for your next Citi card.
Key Terms
- Citi has implemented a 48-month waiting period before you can get a bonus on a card you've had in the past.
- Closing a Citi co-branded American Airlines card will no longer mean you are ineligible for other cards that also earn Advantage miles.
Here is the new language on the Citi website:
“American Airlines AAdvantage® bonus miles are not available if you have received a new account bonus for a Citi / AAdvantage® Platinum Select account in the past 48 months.”
As far as we know, the change hasn't yet impacted any cards outside the American Airlines co-brand family. However, it's rare to see changes that roll out for specific cards not eventually implemented across the entire portfolio. Chase is the perfect example with their rollout of the 5/24 rule—first to Ultimate Rewards earning cards, and eventually to all Chase products.
Citi ThankYou® Cards
So far there has been no change to the terms and conditions of the Citi ThankYou® earning cards. Here is the current language for ThankYou products:
“Bonus ThankYou® Points are not available if you received a new cardmember bonus for Citi Rewards+SM Citi, ThankYou® Preferred, Citi ThankYou® Premier/Citi PremierSM or Citi Prestige®, or if you have closed any of these accounts, in the past 24 months.”
While there is no indication that Citi will implement the new 48-month policy to its ThankYou® card lineup, we think it's a safe bet in the long term. However, if they do, there is one possible upside:
Currently, Citi groups its cards into families. If you have opened or closed a card within the same family in the last 24 months (even if it's a different card), you will not be eligible to receive a welcome bonus. The new 48-month rule seems to sever this familial link, with every card going its own way. This is good news if you hold a Citi card and want to open a new one in the same family; you should be eligible for a welcome bonus as long as the card you plan to open is a different product than the one you currently hold, regardless of your current situation with other cards in the family. This is a nice bonus for existing AA cardholders who are looking to pick up another AA co-branded product from Citi.
Our Take
The move is no surprise. Over the past few years, most card issuers have been adding more and more restrictions. These are aimed at making it more difficult for people to game the system and receive multiple welcome bonuses for the same card. While the new restriction is annoying and will be added to the ever-increasing list of credit card application rules, it should not be an issue in the long run, as long as you have an effective and well-thought-out application strategy.
Source: Doctor of Credit
With these perks, it's easy to justify the annual fee of $99, waived for first 12 months.
- Free checked bags for you and up to 4 companions on domestic itineraries
- Priority boarding to help you win the race for overhead bin space
- A 25% discount on inflight food, beverage, and Wi-Fi purchases
- Earn 2X miles for every $1 spent at restaurants
- Earn 2X miles for every $1 spent at gas stations
- Earn 2X miles for every $1 spent on eligible American Airlines purchases
- Earn 1X mile for every $1 spent on all other purchases
- Free checked bags for you and up to 4 companions on domestic itineraries
- Priority boarding to help you win the race for overhead bin space
- A 25% discount on inflight food, beverage, and Wi-Fi purchases
- Earn 2X miles for every $1 spent on cable and satellite providers
- Earn 2X miles for every $1 spent at gas stations
- Earn 2X miles for every $1 spent on select telecommunications merchants
- Earn 2X miles for every $1 spent on car rentals
- Earn 2X miles for every $1 spent on eligible American Airlines purchases
- Earn 1X mile for every $1 spent on all other purchases
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