The AT&T Points Plus Card emerges as a potential choice for consumers prioritizing gas and grocery purchases, launching with a $100 introductory bonus after meeting certain spending criteria. However, with the availability of numerous competitive options in the credit card market, it is essential to scrutinize its benefits against its limitations.
The AT&T Points Plus Card by Citi offers a rewards structure that seems attractive at first glance. Cardholders earn 3x ThankYou Points on gas station purchases and 2x points at grocery stores, including delivery services. Additionally, 1x point is granted for every dollar spent on other purchases. These points can be redeemed at a flat rate of 1 cent per point for cash, statement credits, and gift cards—an industry-standard valuation.
Despite the potentially appealing reward rates, the card’s unique proposition lies in its ability to earn up to $240 in annual statement credits. This requires cardholders to spend at least $500 monthly to achieve a $10 credit or $1,000 for a $20 monthly credit, provided the card is set for autopay on the AT&T wireless bill. Consequently, a cardholder needs to spend $12,000 annually to maximize these credits. This substantial spending requirement might render the rewards less appealing when paralleled with other market options offering more significant and easier-to-attain benefits.
Comparing the AT&T Points Plus Card with similar no-annual-fee credit cards reveals its limitations. The Citi Custom Cash Card allows cardholders to earn 5x points in a chosen category, like gas, up to $500 per billing cycle, while the Wells Fargo Autograph Card provides 3x points across several categories, including gas, travel, and restaurants. Furthermore, the Chase Freedom Unlimited Card offers varied rewards at a higher rate across different spending categories, without the need for a substantial spending commitment.
For cardholders interested in transferring their Citi ThankYou Points to travel partners, the AT&T Points Plus Card provides limited options. It supports transfers to select partners such as JetBlue and Wyndham, albeit at less favorable ratios. Access to the full range of partners is restricted to those owning premium Citi cards, thereby limiting value extraction from the points for those without such accounts.
Although the AT&T Points Plus Card boasts no annual fee and $0 liability on unauthorized charges, it does have foreign transaction fees, which could deter users planning international travel. It also doesn’t offer introductory APR rates on purchases or balance transfers, which are commonly found in competitive cards.
Ultimately, while the AT&T Points Plus Card provides a niche advantage for heavy gas and grocery spenders who are also AT&T customers, the stringent spending requirements and limited benefits might not justify its use over other, more versatile rewards cards.
In summary, while the AT&T Points Plus Card does offer unique perks to specific consumers, particularly those who are dedicated AT&T patrons, its overall benefits may be outshined by other credit cards on the market with broader reward structures and less demanding spending criteria.
Source: Businessinsider
