A couple of months ago I wrote about an interesting opportunity to transfer credit card rewards to Sears’ loyalty program in a way that actually makes sense. Yes, I now it sounds totally outlandish to want to transfer your travel rewards points to Sears’ loyalty program, but there’s potentially merit to it.
Well, the value proposition of this has just gotten even better, so let’s take a look at the details.
Citi ThankYou points are usually best transferred to airlines
I love earning transferable points currencies for the flexibility that they offer. Unlike earning miles in a specific frequent flyer program, you’re better shielded from devaluations and potential airline bankruptcy.
I get lots of value from Citi ThankYou airline transfer partners, especially when we see transfer bonuses.
However, aside from that, there aren’t many other great ways to redeem ThankYou points, as most redemption options get you at most one cent of value per point.
For example, if you want to redeem ThankYou points towards hotel stays or gift cards, you’re only going to get one cent of value per point under normal circumstances. Going to the Citi ThankYou website, you can redeem 2,500 ThankYou points for a $25 gift card from your choice of a variety of retailers.
Fortunately there’s a way to receive least 20% more value than that when redeeming for gift cards.
Convert Citi ThankYou points into Sears Shop Your Way Points
Frequent Miler noted an interesting redemption opportunity that’s at least worth being aware of, which I hadn’t explored prior to a couple of months ago.
Citi ThankYou Points points can be converted into Sears Shop Your Way points at a 1:12 ratio. As much as I love loyalty programs, I can’t say I’ve spent much time studying Sears’ program prior to this.
Why is this even worth considering? Because you can redeem Sears Shop Your Way points towards gift cards, and it’s at a better rate than through the ThankYou program.
Generally speaking, a $1 gift card requires 1,000 Shop Your Way Points.
In other words, you can redeem 100,000 Shop Your Way Points for a $100 gift card.
Keep in mind that you transferred those points at a 1:12 ratio, meaning that the $100 gift card is costing you 100,000 Shop Your Way points, or ~8,333 Citi ThankYou points (given the 1:12 transfer ratio).
In other words, this is a way to get 1.2 cents of value per ThankYou point when redeeming for gift cards, rather than the typical one cent per point directly through Citi ThankYou.
Shop Your Way lets you redeem points for gift cards from a variety of retailers, including American Airlines, Apple, Chipotle, CVS, DoorDash, eBay, Hotels.com, Lowe’s, Nordstrom, Uber, Walmart, and many more.
What has improved with this opportunity
As noted by Frequent Miler, there are some exciting improvements to this redemption opportunity:
- Shop Your Way has added a lot of new retailer gift cards you can redeem your points for, greatly expanding the selection
- The biggest challenge previously was that you could buy most gift cards in increments of at most $100 (and typically much less than that); now you can choose your gift card account with many retailers, and even buy a gift card worth hundreds of dollars
The ability to buy gift cards in much larger increments is really a game changer here, especially if you’re looking to close out a Citi account and want to redeem your ThankYou points without traveling.
What are the practical implications of this?
Why should you care about being able to redeem Citi ThankYou points for gift cards at a more efficient rate? Let’s talk about this in the context of a larger Citi credit card strategy.
The no annual fee Citi® Double Cash Card (review) offers 1% cash back when you make a purchase, and 1% cash back when you pay for that purchase. In conjunction with a card earning ThankYou points, like the Citi Premier® Card (review), you can convert the rewards on this card into ThankYou points.
To me that means the card earns 2x ThankYou points per dollar spent (after paying the bill), which is awesome. While I’d personally prefer to transfer those rewards to an airline, alternatively you could transfer them to Sears Shop Your Way, and then you could get the equivalent of 2.4% back in the form of gift cards. I’d consider these to be worth much closer to face value now that you can buy gift cards in larger increments.
- Offers 2x ThankYou points at supermarkets and gas stations, for the first $6,000 spent per calendar year
- Rounds up purchases to the nearest 10 ThankYou points
- Gets 10% of points back for the first 100,000 ThankYou points you redeem each year
Having the Citi Double Cash and Citi Rewards+ can potentially improve your rewards even more. Lets say you have both of these cards:
- Say you earned $100 cash back on the Citi Double Cash
- You could then convert that cash back into 10,000 ThankYou points
- You could then convert the 10,000 ThankYou points into 120,000 Shop Your Way points
- You could then redeem the 120,000 Shop Your Way points for $120 in gift cards
- You’d then get 10% of the redeemed ThankYou points refunded due to having the Citi Rewards+ (which is 1,000 ThankYou points)
- In other words, in the end you spent 9,000 ThankYou points for $120 in gift cards, which is 1.33 cents of value per ThankYou point
- Looking at it a different way, you could get ~2.67% back in the form of gift cards when spending on the Citi Double Cash, assuming you also have the Citi Rewards+
This isn’t how I would redeem my Citi ThankYou points
Personally this still isn’t how I would choose to redeem my Citi ThankYou points. I value Citi ThankYou points at ~1.7 cents each, so getting ~1.2-1.33 cents per point doesn’t quite get me the value I’m looking for.
That being said:
- This could be a great option for someone using the Citi Double Cash who doesn’t want to earn travel rewards; 2% cash back is a good rate, but some might prefer an additional 20% bonus for choosing gift cards instead
- This could be useful for someone looking to close down a Citi ThankYou card, who needs to cash out points, but doesn’t have any other ideas for how to do so
- Given that fewer people are traveling right now, many people are just looking to use their points to cover everyday expenses
There can be value in transferring Citi ThankYou points to Sears Shop Your Way points for the purposes of gift card redemptions. You’ll get 20% more value than you’d get redeeming for gift cards directly through the ThankYou program.
It’s a bit of a roundabout process (especially if these are rewards earned with the Citi Double Cash), but it could still be worthwhile. This is especially true now that more gift card partners have been added, and you can redeem for gift cards in larger increments.
Lastly, I should mention that I would only transfer Citi points to Sears if you’re ready to redeem for gift cards immediately, since presumably redemption rates could be changed at anytime.
Has anyone used the trick of redeeming for gift cards through Sears Shop Your Way, rather than through Citi ThankYou directly? If not, would you consider redeeming points this way?