Link: Learn more about the Citi Strata Elite℠ Card
The Citi Strata Elite℠ Card (review) is Citi’s new premium credit card. The card has a massive welcome bonus that makes it worth applying for — many people should be eligible for the product, and it’s a card that I recently picked up. There’s likely a particular interest in this card since Citi ThankYou points can be transferred to American AAdvantage.
As I’ve covered before, the card offers lots of great perks, but it’s not necessarily some “too good to be true” value proposition. In many ways that’s not bad, since “too good to be true” cards tend to be devalued pretty quickly. Along those lines, in this post, I’d like to look at one aspect of the card that is very lucrative, compared to its peers.
In this post:
The Citi Strata Elite Card’s calendar year advantage
The Citi Strata Elite Card has a $595 annual fee, and offers a variety of perks that can help justify that. These benefits include a $300 annual hotel credit, a $200 annual “Splurge Credit,” a $200 annual Blacklane credit, four annual Admirals Club passes, a Priority Pass membership, and more.
In my opinion, those perks can largely help justify the annual fee, especially as part of larger, overall interest in the Citi ThankYou ecosystem.
But here’s what makes this even more interesting, if you ask me. Nowadays, many card issuers tie benefits to the cardmember year rather than to the calendar year. In other words, the cycle with which you receive many perks is tied to when you pay the annual fee, rather than tied to the calendar year.
That’s an area where this card is an exception:
- The $300 annual hotel credit and $200 annual “Splurge Credit” are both offered once per calendar year
- The $200 annual Blacklane credit is a $100 semi-annual credit (one in January through June, and one in July through December)
- The Admirals Club passes are also issued per calendar year
Why the way this is structured is meaningful
Okay, so… what’s the big deal? Essentially, the way the Citi Strata Elite Card‘s benefits are structured makes the return you get on your first $595 annual fee especially compelling. Assuming your application timing doesn’t exactly coincide with the calendar year, you’ll potentially receive the following with your first annual fee:
- Up to $600 in hotel credits (one for the current calendar year, one for the following calendar year)
- Up to $400 in “Splurge Credits” (one for the current calendar year, one for the following calendar year)
- Up to $300 in Blacklane credits (a $100 credit for the current calendar year, a $200 credit for the following calendar year)
- Up to eight Admirals Club passes (four for the current calendar year, four for the following calendar year)
This matters for a couple of reasons. For one, a lot of people apply for cards as they’re tempted by the big welcome offers, and want to give the card a try, and see if it’s a good fit for them, before committing to it long term. The way the rewards are structured makes the card’s value proposition for the first annual fee particularly lucrative.
Some people might think “well then doesn’t that just reduce the value you get in subsequent years?” Not really, since on an ongoing basis, you’ll still get the typical set of credits with each annual fee. However, you get more value with your first annual fee than you’d otherwise get. If you ask me, that’s a major incentive to at least give the card a try, as it greatly limits the downside.
Admittedly if you keep the card forever, it won’t actually make a material difference, since you’ll get those perks on an ongoing basis regardless. But if you do end up canceling the card (and most people eventually get rid of a card, even if it’s years later), you’ll come out ahead by canceling around the time the annual fee is due. Either way, it’s nice to recoup as much value on an annual fee as soon as possible.
Bottom line
The Citi Strata Elite Card has the potential to be quite a compelling card, especially if you’re looking to earn American AAdvantage miles. One major incentive to apply for the card is that the first year value is particularly strong, given that most of the perks are tied to the calendar year rather than being tied to the cardmember year.
That means that with your first annual fee, you’ll get a bunch of perks that will almost certainly offset the $595 annual fee. It’s another reason to consider picking up the card, in my opinion, on top of the incredible bonus that’s currently available.
Something is very wrong and I love this blog...im gay, im a points queen, im same Age as main guy, I love his posts, including personal ones, and I have deep compassion and love for him having children....but why is he not, when WSJ and others are majorly reporting the Citibank, another of their many, huge awful thing theyre doing with strata members. I hate that bank. they are very very dubious and just it...
Something is very wrong and I love this blog...im gay, im a points queen, im same Age as main guy, I love his posts, including personal ones, and I have deep compassion and love for him having children....but why is he not, when WSJ and others are majorly reporting the Citibank, another of their many, huge awful thing theyre doing with strata members. I hate that bank. they are very very dubious and just it seems internally messed up. is this quid pro quo? this is the most toxic bank ever. avoid. and ben, why....once u lose credibility, its over. like someone still supporting Israel. we have to be on side of truth! always and forever. pls
Still no warnings about Citi freezing all your cards and asking for 4506-C after applying for the Strata Elite?
Who is eligible to use the admiral club passes? thank you!
Not specifically related to this article but with the Strate Elite the phone number on the back of the card goes to a much more helpful call center than the normal number
I opened Alaska and Hawaiian credit cards last year and Atmos and IHG cards in the last 3 month. I have held Citi cards for 20+ years. 861 FICO . 7 figure income. I don't revolve. No late payments, had a Citi mortgage paid off years ago. Citi will not approve me for Strata Elite due to too many cards recently opened and not a long enough history. (?) Reconsideration line a flat out no.
Similar situation and same outcome re my application. You are not alone.
Their primary goal appears to be converting their existing Citigold and Private Banking clients over to their credit cards. I'm sure they are sick of all of their existing HNWIs banking with them but holding Amex/Chase cards instead of Citi cards. Explains the elevated offer through the bankers at first as well as the discounted annual fee.
Of course, Amex and Chase actually have something to offer - access to their own branded lounges....
Their primary goal appears to be converting their existing Citigold and Private Banking clients over to their credit cards. I'm sure they are sick of all of their existing HNWIs banking with them but holding Amex/Chase cards instead of Citi cards. Explains the elevated offer through the bankers at first as well as the discounted annual fee.
Of course, Amex and Chase actually have something to offer - access to their own branded lounges. Citi has 4 AA passes (yes, 8 in the first 12 months, and yes, the SUB and Year 1 value is terrific if you can get it). Unless you are constantly out to dinner on Friday and Saturday night and value the 6x points, really not much that this card offers otherwise.
So now they're just stuck with a subpar product, their roll out was flat at best, they just paid for Kristen Bell to launch some splashy new ads to make themselves feel better (they are funny!), but Citi is still Citi.
Also remember that Citi's ability to securitize its credit card receivables is an important source of funding for them, so they tend to be more conservative with who gets approved. Yes to the point of absurdity in many cases. I imagine they have a specific end goal in mind with how they want to securitize the receivables from the Elite - whether standalone or mixing with other receivables to enhance the credit worthiness of the pool
Word on the street is that approvals are for 1/6, 3/12, 6/24; you appear to be 2/6, 2/12, 4/24; if you waited until 1/6, maybe you'd stand a better chance. It's really silly, especially if you're making more than $1 million/year in income (My liege, if so, why are you even on this blog? Shouldn't your personal concierge have been doing this 'dirty work' for you while you enjoy Dom Pérignon and Beluga caviar on...
Word on the street is that approvals are for 1/6, 3/12, 6/24; you appear to be 2/6, 2/12, 4/24; if you waited until 1/6, maybe you'd stand a better chance. It's really silly, especially if you're making more than $1 million/year in income (My liege, if so, why are you even on this blog? Shouldn't your personal concierge have been doing this 'dirty work' for you while you enjoy Dom Pérignon and Beluga caviar on your G650 to the Maldives or or your cozy chalet in Chamonix?)
@1990 - Delta cutting JFK-GVA does make it slightly harder to get to Chamonix, sadly. Folks with a mere $1m in income are certainly not flying private on TATL routes. It's rough out there for sure.