topic Re: Convert Citi Dividend to Thank You Preferred in Credit Cards

Convert Citi Dividend to Thank You Preferred

smc733 — Sun, 14 Feb 2016 15:16:27 GMT

Hi All,

Wanted to run some of my thinking by the other credit gurus to see if my logic makes sense.

Right now the BofA 3-2-1 is my primary card, it has served me well for the last 5 years and I don't intend to replace it. The reward structure with the Preferred Rewards bonus is perfect for my needs.

My question pertains to my "secondary" card, which is my backup and the second card in my wallet (the other four sit in the SD). I've had just about enough of both Amex and Discover (lack of acceptance a worry as a backup, Amex rewards and service are subpar as well). I figured a World MasterCard next to a Visa Signature is a nice, simple approach.

The problem for me is this, the Dividend used to be a good card, but the last two years have had pretty bad categories, none of the 5% categories this year will likely ever see any use for me, particularly since this is for personal discretional sepend (re: restaurants, a few personal purchases). The $50 minimum redemption means I will likely never see a cash out from this card.

I am thinking to call and request conversion to the Thank You Preferred, which now seems possible again. With the student loan or mortgage redemption options (which I will likely have at least one of (currently both) for the forseeable future, I can get a 1 to 1 redemption, which is fine for the occasional use, the rewards won't be much anyhow. The 2x on restaurants will help, though.

Is it really a crazy idea to change from Dividend to TYP? Am I the only person who desires a simple card approach, and Amex/Discover just don't fit into that?

Re: Convert Citi Dividend to Thank You Preferred

Sharingan — Sun, 14 Feb 2016 16:11:39 GMT

@smc733 wrote:
Hi All,

Wanted to run some of my thinking by the other credit gurus to see if my logic makes sense.

Right now the BofA 3-2-1 is my primary card, it has served me well for the last 5 years and I don't intend to replace it. The reward structure with the Preferred Rewards bonus is perfect for my needs.

My question pertains to my "secondary" card, which is my backup and the second card in my wallet (the other four sit in the SD). I've had just about enough of both Amex and Discover (lack of acceptance a worry as a backup, Amex rewards and service are subpar as well). I figured a World MasterCard next to a Visa Signature is a nice, simple approach.

The problem for me is this, the Dividend used to be a good card, but the last two years have had pretty bad categories, none of the 5% categories this year will likely ever see any use for me, particularly since this is for personal discretional sepend (re: restaurants, a few personal purchases). The $50 minimum redemption means I will likely never see a cash out from this card.

I am thinking to call and request conversion to the Thank You Preferred, which now seems possible again. With the student loan or mortgage redemption options (which I will likely have at least one of (currently both) for the forseeable future, I can get a 1 to 1 redemption, which is fine for the occasional use, the rewards won't be much anyhow. The 2x on restaurants will help, though.

Is it really a crazy idea to change from Dividend to TYP? Am I the only person who desires a simple card approach, and Amex/Discover just don't fit into that?

It is not crazy to want to PC the Dividend, however, it would be crazy to choose the TY Preferred over the Double Cash as your end product. Why would you want to settle for 2x TY points on restaurants, which can only be valued at 1 cent a piece when redeemed toward mortgage/student loans? That doesn't sound like an exciting proposition to me. I think some gift cards and maybe a few travel bookings may be a decent redemption option as well, but it still doesn't make the TY Preferred a good product. By comparison, the Double Cash will earn 2% cash back on anything you could possibly charge to the card as a purchase, as long as you pay your bill. There are a variety of ways to redeem that cash back as well. Additionally, the redemption threshold is half of what you are dealing with on the Dividend. Finally, you will have an impressive 13.1k limit on the DC if you PC to it. Hopefully, no one will use the argument that the DC 'gives low limits' because it is not applicable nor relevant in this scenario.

Admittedly, I do have a TY Preferred, however, it is solely being used to park a credit line until I can transfer it to another card without a HP. I see no value in the card whatsoever, unlike the Double Cash and TY Premier cards.

Re: Convert Citi Dividend to Thank You Preferred

Anonymous — Sun, 14 Feb 2016 16:19:53 GMT

+1 to Sharingan

I started to type the same thing twice and didn't have the energy this morning.

Re: Convert Citi Dividend to Thank You Preferred

Anonymous — Sun, 14 Feb 2016 16:20:04 GMT

@Sharingan wrote:
@smc733 wrote:
Hi All,

Wanted to run some of my thinking by the other credit gurus to see if my logic makes sense.

Right now the BofA 3-2-1 is my primary card, it has served me well for the last 5 years and I don't intend to replace it. The reward structure with the Preferred Rewards bonus is perfect for my needs.

My question pertains to my "secondary" card, which is my backup and the second card in my wallet (the other four sit in the SD). I've had just about enough of both Amex and Discover (lack of acceptance a worry as a backup, Amex rewards and service are subpar as well). I figured a World MasterCard next to a Visa Signature is a nice, simple approach.

The problem for me is this, the Dividend used to be a good card, but the last two years have had pretty bad categories, none of the 5% categories this year will likely ever see any use for me, particularly since this is for personal discretional sepend (re: restaurants, a few personal purchases). The $50 minimum redemption means I will likely never see a cash out from this card.

I am thinking to call and request conversion to the Thank You Preferred, which now seems possible again. With the student loan or mortgage redemption options (which I will likely have at least one of (currently both) for the forseeable future, I can get a 1 to 1 redemption, which is fine for the occasional use, the rewards won't be much anyhow. The 2x on restaurants will help, though.

Is it really a crazy idea to change from Dividend to TYP? Am I the only person who desires a simple card approach, and Amex/Discover just don't fit into that?
It is not crazy to want to PC the Dividend, however, it would be crazy to choose the TY Preferred over the Double Cash as your end product. Why would you want to settle for 2x TY points on restaurants, which can only be valued at 1 cent a piece when redeemed toward mortgage/student loans? That doesn't sound like an exciting proposition to me. I think some gift cards and maybe a few travel bookings may be a decent redemption option as well, but it still doesn't make the TY Preferred a good product. By comparison, the Double Cash will earn 2% cash back on anything you could possibly charge to the card as a purchase, as long as you pay your bill. There are a variety of ways to redeem that cash back as well. Additionally, the redemption threshold is half of what you are dealing with on the Dividend. Finally, you will have an impressive 13.1k limit on the DC if you PC to it. Hopefully, no one will use the argument that the DC 'gives low limits' because it is not applicable nor relevant in this scenario.

Admittedly, I do have a TY Preferred, however, it is solely being used to park a credit line until I can transfer it to another card without a HP. I see no value in the card whatsoever, unlike the Double Cash and TY Premier cards.

+1 This the my thought as well. Go the Double Cash route!

Re: Convert Citi Dividend to Thank You Preferred

Sharingan — Sun, 14 Feb 2016 16:29:50 GMT

@Anonymous wrote:
+1 to Sharingan

I started to type the same thing twice and didn't have the energy this morning.

I know exactly what you mean. The number of replies I start typing and end up cancelling... It's probably why my post count is still so low after all this time.

Re: Convert Citi Dividend to Thank You Preferred

smc733 — Sun, 14 Feb 2016 18:00:15 GMT

Thanks for the replies.

Forgot to update my signature, but I have recently soft-pull CLI'd to $15k on the Citi card.

Double cash does sound attractive, but I have a really petty and (admittedly stupid) reason for not liking it... I don't like the way the card looks... Stupid, right? I think I will let the rational side of my brain win over and give it another look. A $15k World MC Double Cash with a (now 12.24 APR) does seem to be better than what the approvals coming in are.

It definitely does seem like Citi is not interested in preserving the Dividend card, so I'll have to do some type of PC at some point. Thanks all!

Re: Convert Citi Dividend to Thank You Preferred

mikelo22 — Sun, 14 Feb 2016 18:43:10 GMT

Definitely go with the DoubleCash. It may be ugly to some (I personally like the design), but its rewards are fantastic. With it and the Forward, Citi pretty much gets all my spending at the moment.

There's really no point in switching to the ThankYou Preferred unless you have the ThankYou Premier or Prestige so that you can get the most money out of your points by redeeming for travel. Citi has been in the process of ramping up their available transfer partners to the point that they're getting competitive with Chase and Amex (though admittedly they still have a ways to go).

And although you didn't ask for any input on it, I would advise you that there are better cards than the BoA Cash Rewards. It offers 3% on Gas and 2% on groceries. ~~But the SallieMae WMC offers 5% on Gas, Groceries, and Bookstores (including Amazon!). That might be a card to look into in the future.~~

Edit: My bad, I wasn't aware that the SallieMae was no longer being offered. Shows you how out-of-the-loop I've been the past several months.

Re: Convert Citi Dividend to Thank You Preferred

Sharingan — Sun, 14 Feb 2016 18:27:25 GMT

When it comes to looks, I think the Citi TY Preferred looks absolutely atrocious with the ugly orange and red MasterCard logo against the very dark blue background, but that's just my opinion. I think the Double Cash looks sharp, especially the World Elite version with the silver MasterCard logo on the back.

Regardless, I can't advise selecting a product based on its looks over more important criteria like utility and value. For example, the Sallie Mae card is hands down one of the ugliest cards I have ever seen in my life. That doesn't impact the card's incredible rewards structure and usefulness, however. Sadly, it's no longer available to new applicants.

Best of luck in your selection.

Re: Convert Citi Dividend to Thank You Preferred

L-TWT — Sun, 14 Feb 2016 18:29:07 GMT

@smc733 wrote:
Thanks for the replies.

Forgot to update my signature, but I have recently soft-pull CLI'd to $15k on the Citi card.

Double cash does sound attractive, but I have a really petty and (admittedly stupid) reason for not liking it... I don't like the way the card looks... Stupid, right? I think I will let the rational side of my brain win over and give it another look. A $15k World MC Double Cash with a (now 12.24 APR) does seem to be better than what the approvals coming in are.

It definitely does seem like Citi is not interested in preserving the Dividend card, so I'll have to do some type of PC at some point. Thanks all!

you are not alone my friend, that was one of the reasons i converted my Citi DC to Citi Thank You Premier! I'm far from petty but I'm bordering on vain

Re: Convert Citi Dividend to Thank You Preferred

mikelo22 — Sun, 14 Feb 2016 18:29:10 GMT

@Sharingan wrote:

For example, the Sallie Mae card is hands down one of the ugliest cards I have ever seen in my life. That doesn't impact the card's incredible rewards structure and usefulness, however. Sadly, it's no longer available to new applicants.

This is so true! SallieMae really is the ugliest card I've seen. I wasn't aware that it's no longer available though. Guess I've been out of touch for too long. That's really too bad. My bad on the misinformation earlier.

Re: Convert Citi Dividend to Thank You Preferred

Man-Of-Steel — Mon, 15 Feb 2016 01:50:29 GMT

@smc733 wrote:

Is it really a crazy idea to change from Dividend to TYP? Am I the only person who desires a simple card approach, and Amex/Discover just don't fit into that?

I agree with the advice that Sharingan provided earlier. I can appreciate an attractive card, but I would try not to let the card aesthetics get in the way of your decision with this PC. I haven't seen the Double Cash card in person, but from what I've seen in pictures and on TV, the card looks OK, but I know that card aesthetics are subjective.

As far as the second question is concerned, I'm a big fan of a simple card approach. I haven't run into major acceptance issues with Amex and Discover, however, it has been more of an issue with Amex for me. For example, for the longest time, my electric bill could only be paid with Visa or MC. This month, I noticed that they added Discover to the list, but not Amex. Last month when I paid my rent online, Amex was missing from the list. I could have sworn it was available previously. Now they only accept Visa/MC/Disc.

Re: Convert Citi Dividend to Thank You Preferred

Man-Of-Steel — Mon, 15 Feb 2016 01:55:07 GMT

@L-TWT wrote:
@smc733 wrote:
Thanks for the replies.

Forgot to update my signature, but I have recently soft-pull CLI'd to $15k on the Citi card.

Double cash does sound attractive, but I have a really petty and (admittedly stupid) reason for not liking it... I don't like the way the card looks... Stupid, right? I think I will let the rational side of my brain win over and give it another look. A $15k World MC Double Cash with a (now 12.24 APR) does seem to be better than what the approvals coming in are.

It definitely does seem like Citi is not interested in preserving the Dividend card, so I'll have to do some type of PC at some point. Thanks all!
you are not alone my friend, that was one of the reasons i converted my Citi DC to Citi Thank You Premier! I'm far from petty but I'm bordering on vain

It's good to know that you were able to PC a Double Cash into a ThankYou Premier. This leads me to believe that a PC going in the opposite direction might be possible. I just hope you didn't lose out on the ThankYou Premier signup bonus by doing a PC like that.

Re: Convert Citi Dividend to Thank You Preferred

Sharingan — Mon, 15 Feb 2016 02:02:20 GMT

@Man-Of-Steel wrote:
@L-TWT wrote:
@smc733 wrote:
Thanks for the replies.

Forgot to update my signature, but I have recently soft-pull CLI'd to $15k on the Citi card.

Double cash does sound attractive, but I have a really petty and (admittedly stupid) reason for not liking it... I don't like the way the card looks... Stupid, right? I think I will let the rational side of my brain win over and give it another look. A $15k World MC Double Cash with a (now 12.24 APR) does seem to be better than what the approvals coming in are.

It definitely does seem like Citi is not interested in preserving the Dividend card, so I'll have to do some type of PC at some point. Thanks all!
you are not alone my friend, that was one of the reasons i converted my Citi DC to Citi Thank You Premier! I'm far from petty but I'm bordering on vain
It's good to know that you were able to PC a Double Cash into a ThankYou Premier. This leads me to believe that a PC going in the opposite direction might be possible. I just hope you didn't lose out on the ThankYou Premier signup bonus by doing a PC like that.

That would be my concern too. $95 AF upfront and an opportunity cost of 40/50k TY points from the sign up bonus. I hope it was worth it .

Re: Convert Citi Dividend to Thank You Preferred

L-TWT — Mon, 15 Feb 2016 12:11:25 GMT

It would have been nice to receive the TY points sign up bonus, which I didn't, I just wanted to diversify my CC portfolio, I have 4 CC total which all offer cash back rewards, and it was very hard to juggle/justify using my Citi DC & Cap1 QS, especially when I travel a lot, so the Citi TY premier just made more sense/logical decision even with paying $95 AF

Re: Convert Citi Dividend to Thank You Preferred

hot4u — Mon, 15 Feb 2016 18:23:53 GMT

Aloha,

Had same issue decided to PC to Double Cash