Citi removes bonus on Preferred/Premier

For just about anything you want to get off your chest about credit cards.
6 posts
kdm31091
Centurion Member
Centurion Member
 
Posts: 1009
Joined: Sat Feb 21, 2015 3:35 pm
Location: Claymont, DE

Citi removes bonus on Preferred/Premier

Postby kdm31091 » Mon Apr 11, 2016 8:23 am

Citi has removed the signup bonus on both the Thankyou Preferred and Premier cards. Whether this is temporary or not I don't know, but I am more interested in what this means within the credit market. It's clear banks are clamping down, and want people to actually earn points by spending on the card regularly, not just collecting the bonus and then SD the card. Of course, people are unhappy about it, but I think it shows we are heading into a "tightening up" period, at least with regard to bonuses. Banks want loyal cardmembers, and not pump and dumps, and it seems they are taking steps for what they want. Almost no one will sign up without the bonus unless they actually want the card long term, so it seems the move will do what Citi wants.

That said, of course, the card becomes less enticing without a bonus, but it's unclear whether the bonus entices long term users vs enticing the "pump and dump" type. What do you guys think?


JonE
Centurion Member
Centurion Member
 
Posts: 335
Joined: Sat Jan 24, 2015 9:55 am
Location: Denver

Re: Citi removes bonus on Preferred/Premier

Postby JonE » Mon Apr 11, 2016 11:35 am

I always take the bonus into account, but I always use the card for long-term spending well after the bonus has or hasn't been met. I don't get a card unless I find it useful, once I no longer find it useful I drop it.

That said I had issues with Citi in the past, and beyond getting a Citi Diamond Preferred, I can't really see any other option they offer that I'd want. Don't want yet another rewards program (ThankYou Points) over UR and possibly MR in the future. 1 or two should be more than enough for my level of spending.
Current Cards: Chase Freedom, Discover IT
Future: TBD

User avatar
CarefulBuilder14
Centurion Member
Centurion Member
 
Posts: 3753
Joined: Thu May 08, 2014 7:42 pm
Location: United States

Re: Citi removes bonus on Preferred/Premier

Postby CarefulBuilder14 » Mon Apr 11, 2016 1:00 pm

Bonus offers change frequently and often for no clear reason. I wouldn't read too much into this until/unless Citi adopts something like 5/24 or refuses churning bonuses.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

Tubpbs
Centurion Member
Centurion Member
 
Posts: 833
Joined: Mon Oct 19, 2015 2:08 pm

Re: Citi removes bonus on Preferred/Premier

Postby Tubpbs » Mon Apr 11, 2016 1:28 pm

CarefulBuilder14 wrote:Bonus offers change frequently and often for no clear reason. I wouldn't read too much into this until/unless Citi adopts something like 5/24 or refuses churning bonuses.


I'd agree with this for the most part. That being said, I think it's certainly possible they are or will be getting rid of large sign up bonuses. I get most / all of my cards with the intention of long term use / keeping them "forever" theoretically. Even with that, however, I spend much less money on the cards once the bonus has been met. I don't spend money I wouldn't otherwise spend to meet a bonus. So, from the theoretical perspective you're presenting on behalf of Citi, if they could have that heavy spend for 1-2 months or 12 months a year every year, I would be trying to figure out how to get the latter as well.

We will see. I could see things going either way with the sign up bonuses really. With the slowly "improving" economy, there are hopefully more potential users that qualify for these products now... So do they want to entice MORE accounts or higher quality accounts or somewhere in between. It's whatever line they want to walk really.

I'm sure we'll see some changes over the next several months.

Though I would say if they really wanted to stop churning and bonus hunters, they could do what Amex does...limit the bonus to lifetime instead of 24 months. Even Chase who wants to discourage everyone from bonus hunting still let's you get the bonus every 24 months. I guess they don't mind if you bonus hunt with Chase repeatedly but if you're spreading it around the likelihood of you spending regular money with them diminishes.

Curious move though. I'm interested in watching the long term with this.

I usually don't care about the bonus when choosing a card. Obviously I want the points or whatever it is after I sign up, but I try to find cards that will benefit me, whether or not I get a bonus, year after year without weighting it against a sign up bonus.
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It

User avatar
Vattené
Centurion Member
Centurion Member
 
Posts: 1157
Joined: Sun Jan 26, 2014 3:55 am
Location: US

Re: Citi removes bonus on Preferred/Premier

Postby Vattené » Mon Apr 11, 2016 8:09 pm

I agree it might be reading too much into it, but if there is something to this hypothesis the introduction of the Double Cash supports it. It has a great rewards return with no bonus at all, making it well suited to attract customers of high quality while weeding out bonus hunters.

I could be wrong, but I suspect Chase's 5/24 rule is meant more to keep out indiscriminate credit seekers than churners. I'm just skeptical that churning is THAT big of a problem across the industry as a whole. It's only a problem if it is prevalent, and in our echo chambers it is easy to forget just how many people don't pay attention to rewards.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

kdm31091
Centurion Member
Centurion Member
 
Posts: 1009
Joined: Sat Feb 21, 2015 3:35 pm
Location: Claymont, DE

Re: Citi removes bonus on Preferred/Premier

Postby kdm31091 » Mon Apr 11, 2016 8:22 pm

It's clear the companies are all fighting for long term customers. Chase's 5/24 is just as much to cut out churners as it cuts out indiscriminate credit seeking, as you mentioned. They don't want people who randomly jump from card to card.

Barclay's may not have a 5/24 type of policy, but most of their cards are designed for people who are going to use them often, or else the rewards become useless. Cashforward with the $50 threshold for redemption, Arrival+ with $100, etc. You aren't getting the rewards unless you use the card frequently. Again, they want you locked in with them, more or less.

As far as Citi, I imagine they want the same thing. The Double Cash is a great example of a card that's only going to appeal to people who want to keep a card for awhile, considering there's no upfront bonus benefit.



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 2 guests