New Temporary Point Redemption Offering From Citi
During this unprecedented time, some credit card issuers have stepped up by providing new benefits, ways to earn points and even redeem them. Citi has now announced a new temporary point redemption option for cardholders by providing them the choice to redeem cash rewards and ThankYou Points to pay their minimum due.
Normally, when you redeem credit card rewards for cash back or statement credits, you would still owe the minimum payment due, even if you have enough rewards to cover that amount.
Citi cardholders can check if they are eligible by logging into their Citi Mobile App or online account and looking for COVID-19 relief options on the Rewards Details section or call the servicing number found on the back of their card. This redemption option is available through 11/07/2020.
Conclusion
The best use of Citi ThankYou points is to transfer them to travel partners. When used this way, points would have a value of about 1.3 to 1.4 cents. There is also an option to redeem Citi ThankYou points at a value of 1 cent per point for mortgage or student loan checks. You can also now cash them out for gift cards at a rate of 1.2 cents per point or more (if you have the Rewards+ card).
So it is not a good idea to redeem them for for cash back, because often points are only worth 0.5 cents. Redeeming ThankYou points toward your minimum due payment gets you a slightly better value, 0.8 cents per point. Still not good enough.
While is it not the best use of ThankYou points, it does give some people the option to keep up with payments without having to use their cash. If you are in financial trouble, Citi is still offering financial assistance, such as deferred payments and waived late fees. Contact the bank and see if they can work with you.
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