The reason for the change in annual fee, "In April 2012, we upgraded the benefits that came with your
Citi / AAdvantage credit card. These exciting benefits resulted in a change in the card's annual membership fee."
The only major benefit, I remember, is a 10% rebate of AAdvantage miles redeemed. Is that worth $10 more a year?
The change happens in May 2013 on your next anniversary. For me that is in October.
A copy of the letter I received is below:
This letter made my decision easier.... Na Na Na, Hey Hey Goodbye Citi AAvantage?
Did you get a similar letter? If so, does it change your mind in keeping this card?
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It all depends on how many AAdvantage miles you redeem a year. We value AAdvantage miles at 1.5¢ per mile. As long as you're redeeming at least 66,667 miles a year, that new 10% rebate would cancel out the $10 increase in fee, making it worth it. It's certainly worth it if you redeem a whole lot more than that.
ReplyDeleteGood point. As with all annual fees, even increases in those fees, the value depends heavily on individual circumstances.
DeleteThanks for the comments guys. Very very true....it seems to be one of those YMMV situations. If you are just holding onto the card and not redeeming enough to make it worth the fee increase, or the benefits don't substantially help you out you have to weigh the pros and cons.
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