Seems like Citibank and their credit cards are on my mind lately. First it was making sure I had used my Citi Prestige airline credit benefit before this year ended. Then I mourned the upcoming changes to my Prestige card. Next up on my year-end credit card review and to-do list was looking at my credit cards and deciding which to keep and which to let go.
Two of my Citi cards came to my attention, one a business card and one a personal card. I wanted to be sure of the card benefits, and whether or not I could do anything with my spending limits, such as add the amount to another Citi card, if I canceled. I also wanted to check when my annual fee posted. I decided to call Citi. It was a most illuminating call.
Here’s What I Learned
I never realized before that Citi does not allow credit limits to be shifted amongst cards. If I canceled these cards the credit limits went bye-bye with them. Bummer, but good to know. The next piece of information the Citi rep actually volunteered when I was asking her a different question altogether.
Citibank changed their policy on how your annual fee is rebated when you cancel your card.
Who knew? Not me.
She told me that previously if you canceled a Citi card the annual fee would be rebated based on when you cancel the card. So let’s say 6 months into the year you canceled your card. That meant 50% of the annual fee would be rebated.
Not any more! About a month or so ago the rule changed. Citi now gives you a 60 day period after the annual fee posts to receive a rebate on your annual fee. After that, no part of the annual fee is rebated when you cancel your card.
Bottom Line
For some cards that might be a few dollars down the drain, and for some Citi cards that could be hundreds of dollars. And it certainly means we need to be keenly aware of when our fees post. If we’re on the fence about keeping or letting go of a card, best to make that decision as close in to our annual fee date as possible. Since this rule change on getting annual fees back from Citi was news to me, I figured I’d make some espresso, write about it, and make sure you’re all aware of it too!
My Prestige AF posted Oct 22. AF due December 22. Can I ask to push the date in January? Get airline credt and then cancel, or did I lose that window?
Good question, Sam. The statement date is what influences the posting of the airline credit, not the AF date posting. I’m thinking since you mentioned Oct 22, that’s your statement posting date. Seems like you’re cutting it close. If the AF is due on the 22 Dec and you pay it then, you’ll have 60 days to have it reimbursed if you cancel. The airline credit fee has to post in 2018 for you not to lose it. If you’re not sure about these dates and what’s possible, I’d call Citi. No one makes calls anymore, so I got right through!
Citi had the AF rebate policy long ago before I canceled my Prestige card nearly three years ago. It is a fair policy to implement and enforce.
I agree, policy is fair. I wasn’t aware of the current policy though, so I figured others had missed the rebate policy change as well. Thanks for reading, GT.
I’m pretty sure Massachusetts makes the credit card companies to prorate the fee if you cancel.
Thanks for adding this data point. I’m not in Massachusetts, so maybe someone who has gone through this can let us know.
any recent data points for this topic on the Aadvantage Executive card?
Hi WB, I don’t have any recent data points. Maybe a reader will add one. Thanks for reading!