Telephone carrier-affiliated credit cards do not normally elicit much buzz within the travel rewards forum. They are usually regarded as niche products that can be of use to a particular group of people but can be easily missed unless you are a current consumer of the product. One of the lesser-known secrets in the world of no-annual-fee cards has been the AT&T Points Plus Card by Citi, and a recent update has made it more attractive than ever to AT&T customers that are yet to give it a serious consideration.

Citi recently released a few substantive improvements to the card such as a more potent welcome offer, two additional earning categories, and removal of foreign transaction fees. The timing is something to consider to existing AT&T customers.

An Even Better Welcome Addition With a Significantly Lower Bar

We should begin with the section that is going to receive the greatest amount of attention the new welcome bonus. New cardholders who apply online and are approved can now earn a $250 statement credit by only spending $500 in the first three months of account opening.

A truly good welcome offer on a no-annual fee card. The older version of this deal demanded spending of $1,000 to receive a bonus of $200 this version reduces the spending requirement by half and adds a bonus of $50. When you are an AT&T customer and already had a bill or two to pay out in the next few months, it is almost automatic that you hit that $500 mark.

The offer can be accessed on both citi.com and att.com, thus there is no complex route to access the offer. It is an easy way to start with a card that, as you will discover, keeps on giving even after the initial bonus.

What is New: Two New Things that Do Matter

In addition to the welcome offer, Citi added two new benefits that complete the utility of the card in real, daily, ways. The former is 2x ThankYou points on AT&T services and products, including monthly bill payments. In the past, there was no special bonus accrued by paying your ATT bill with this card which was an odd omission on a co-branded product. That omission is now rectified. Since AT&T bills may simply be $100 or more monthly just to cover wireless alone, doubling the points earned in that monthly payment will add up significantly over a period of one year.

No foreign transaction fees is the second addition. This is a simple yet important one. Earlier on, international use of the card would lead to the imposition of extra charges on each purchase, which became a source of friction rendering the card virtually useless in other countries. By eliminating that obstacle, the AT&T Points Plus card can be a feasible alternative to travelers who wish to continue reaping the benefits of earning the ThankYou points as they spend abroad without incurring a fee. These additions are both not flashy, and both do fill actual holes in what the card provided previously.

The Complete Earning and Benefits Picture

To the new additions, the existing structure has been overlaid, giving the AT&T Points Plus card a quite well-balanced earning profile on a no-annual-fee product:

• 3x ThankYou Points on purchases of gas and EV charging stations.
• Grocery stores, including grocery delivery services, 2x ThankYou Points.
• AT&T products and services and bill payments: 2x ThankYou Points.
• Up to $240 annually in statement credits $20 will be refunded after spending 1,000 or more in a billing cycle or $10 will be refunded after spending between 500 and 999.99.
• Discount on your AT&T wireless bill: 10/month/line when using auto pay and paperless billing.
• Discount of $10 per month on AT&T eligible internet service with the same enrollment requirement.

There is a closer look that should be made on the AT&T bill discounts. Two wireless lines and an AT&T internet service could save a household with 2 wireless lines $30/month or 360/year of lowering bill payments simply by having the card and just by signing up to autopay and paperless billing. Add over-to-240 in annual statement credits and you are potentially reaping over $500 in direct savings annually to a zero-cost card.

It is quite a significant value proposition, especially when you contrast it with cards that cost you between 95 and above per year to get the same amount of credit.

The Citi ThankYou Ecosystem Connection

This is what makes the AT&T Points Plus card more than most individuals anticipate a telecom co-branded product to be: it earns Citi ThankYou Points, meaning that rewards are not in a brand-specific silo.

Provided you also have a card such as the Citi Strata Premier you can combine the amount of ThankYou points you earn on both cards and can use Citi entire list of airline and hotel transfer partners. That is what could be a small cash-back deposit into movable travel money that could be worth much more than face value once it is redeemed with the Citi transfer partners.

To customers of AT&T who are already accumulating a balance of ThankYou Points using a premium Citi card, the AT&T Points Plus is a smart companion card a card that earns bonus points in everyday categories such as gas and groceries, doubles the number of points on recurring telecom bills, and feeds into the same points pool without charging an annual fee to do so.

Who This Card is really made

The fairy tale truth is the value of this card is nearly all concentrated in the hands of AT&T clients. When you fail to pay an AT&T wireless or internet bill, the bill discounts are null, the 2x on AT&T purchases is non-existent, and what you are left with is a good but not great gas and grocery card that competes with others.

In the case of AT&T subscribers, however, the calculation is quite different. The bill discounts, statement credits, powerful welcome offer, and the Citi ThankYou Points earning make the card truly pay itself and even more without having to pay anything every year to do so.

With the introduction of no foreign transaction fees and 2x on AT&T services, the card is a step closer to being a well-rounded everyday product, as opposed to a single-purpose product. It continues to give the AT&T customers a direct reward, but now it is a card worth carrying to do some additional day-to-day purchases.

The Bottom Line

The AT&T Points Plus Card from Citi was already a solid no-annual-fee option for AT&T customers the updated version makes a stronger case than ever. A $250 welcome offer with a low $500 spending requirement, new 2x earning on AT&T purchases, no foreign transaction fees, and up to $500 or more in annual savings through bill discounts and statement credits combine into a genuinely compelling package.

If you're an AT&T customer who hasn't added this card to your wallet yet, the current offer is probably the best entry point it's had. And if you're already building a Citi ThankYou Points strategy, this card fits naturally into that ecosystem without costing you a dollar in annual fees to hold.