Dreaming of a credit card that adapts to your spending habits and rewards you automatically? Many are curious about how the Citi Custom Cash Credit Card works and whether it delivers on its promise of flexible rewards.
Understanding this card can help you make smarter financial decisions, maximize your savings, and get the most out of your everyday purchases. In this article, we’ll break down how the Citi Custom Cash Card operates, explain its key features, and share tips to help you get the most value.
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Understanding the Citi Custom Cash Credit Card
The Citi Custom Cash Credit Card is designed for those who want flexible rewards tailored to their spending habits. Rather than locking you into spending categories chosen by the issuer, this card automatically adapts—giving you top-level cash back on your highest spending category each billing cycle. It’s a next-generation approach to rewards, meant to make your cashback strategy both simple and highly effective.
In this article, you’ll learn how the Citi Custom Cash Card works, what it offers, how to maximize its benefits, and helpful tips for making the most of your rewards. We’ll also address common questions so you can decide if this card suits your needs.
How the Citi Custom Cash Credit Card Works
Citi’s innovation with the Custom Cash Card lies in its adaptive rewards system. Instead of requiring you to “activate” rotating categories or select where you want your extra cash back, the card does the work for you. Here’s how:
- Automatic 5% Cash Back: You earn 5% cash back automatically on your top eligible spending category each billing cycle, up to $500 spent (then 1% after that).
- 1% Cash Back on All Other Purchases: For every other purchase, and when you exceed $500 in the top category, you get 1% cash back.
Eligible 5% Cash Back Categories
Your card tracks your spending and applies the 5% rate to the category where you spend the most each month from a Citi-approved list, including:
- Restaurants
- Gas stations
- Grocery stores
- Select streaming services
- Drugstores
- Live entertainment
- Home improvement stores
- Fitness clubs
- Select transit (commuter transportation and rideshares)
- Select travel (hotels, car rentals, etc.)
This automatic system removes the burden of tracking categories and activating quarterly bonuses. It’s effortless, freeing you to spend as usual and let Citi maximize your rewards.
Benefits of the Citi Custom Cash Credit Card
The Citi Custom Cash shines for everyday spenders, budget-savvy shoppers, and those who appreciate a card that adapts to lifestyle changes. Here’s a deeper look at its advantages:
1. Flexibility and Simplicity
- No Category Activation: The card automatically finds your highest spend and sets your 5% category. No enrolling, no tracking dates—just simple rewards.
- Adapts Every Month: If you change spending habits monthly, the card adapts. Spend the most on restaurants this month, groceries next month—each earns 5% without extra effort.
2. Competitive Cash Back
- Top-Tier Rate: The 5% cash back rate is among the best for no-annual-fee cards.
- 1% on Everything Else: All other purchases earn 1%, so you always get rewarded.
3. Welcome Bonus
Many times, Citi offers a welcome bonus for new cardholders—often a generous cash back amount if you meet a spending requirement in the first few months. Terms vary, so check the details when you apply.
4. Introductory APR Offers
The Citi Custom Cash Card frequently comes with a 0% introductory APR offer on purchases and/or balance transfers for a set period (often 12-15 months). This can help you manage big purchases or pay down debt interest-free for a while.
5. No Annual Fee
There’s no annual fee, so your rewards aren’t eaten up by yearly charges.
6. Additional Perks
- Citi Entertainment: Access to presale tickets and VIP experiences for concerts and events.
- Purchase and Fraud Protection: Security features like $0 liability for unauthorized charges and contactless technology.
Steps to Get and Use the Citi Custom Cash Credit Card
Getting and using the Citi Custom Cash Card is a smooth process. Here’s how to get started and maximize its benefits:
1. Check Your Credit
This card is intended for those with good to excellent credit (typically 670 or higher). Check your credit score before applying.
2. Apply for the Card
- Visit the issuer’s website or apply through a bank branch.
- Fill out the application with your personal, financial, and employment information.
- Get a decision, often instantly or within a few days.
3. Activate and Start Spending
- Once approved, activate your card and start making purchases.
- The card will automatically track your top eligible category and apply 5% cash back (up to $500 in that category per cycle).
4. Redeem Your Cash Back
Cash back is earned as Citi ThankYou Points—each cent of cash back = 1 ThankYou Point.
You can redeem points for:
– Statement credits (effectively cash back)
– Direct deposits or checks
– Gift cards
– Travel bookings through Citi’s portal
– Shopping with select retail partners
For most, redeeming points for statement credits or direct deposit makes the most sense for simple cash back.
5. Pay Your Bill
Pay on time and in full to avoid interest charges. Take advantage of any intro 0% APR period if you need to carry a balance (but remember the interest rate rises when the period ends).
How to Maximize Your Custom Cash Rewards
The card’s unique rewards structure rewards strategic spending. Here’s how you can make the most of it:
1. Concentrate Spend in One Category Per Cycle
Aim to prioritize a single eligible category each billing cycle. For example, if you’re planning to remodel, put all home improvement store purchases on the card that month to get 5%.
2. Pair with Other Cards
If you have other credit cards that earn higher rewards in certain areas or have category caps, you can use the Citi Custom Cash for whatever category you expect to outspend each month.
3. Track Category Caps
Remember the $500 per billing cycle limit for 5% earning. Any amount above that, or for other purchases, earns only 1%. Move extra spend to a different card if possible once you hit the cap.
4. Use for Recurring Monthly Bills
Consider setting streaming services, gym memberships, or recurring grocery expenses on the card for steady 5% cash back—just make sure these are your top category each month.
5. Redeem Rewards Wisely
Usually, direct deposits or statement credits offer the most value and flexibility, but the ThankYou Points ecosystem provides other redemption options if you want travel or gift cards.
Challenges and Drawbacks to Consider
While the Citi Custom Cash has many benefits, be aware of its limitations:
1. 5% Category Limited to $500/Month
You can earn 5% cash back on up to $500 spent in your top category per statement cycle. After that, it’s just 1%. For bigger spenders, this could mean hitting the cap quickly.
2. One 5% Category Per Cycle
Only your top spending category earns 5%—not multiple categories, no matter how much you spend across them. If your spending is spread evenly, you may not maximize the 5% bonus.
3. Foreign Transaction Fee
The card comes with a foreign transaction fee, making it less ideal for international travel.
4. ThankYou Points Redemption
Cash back is issued as ThankYou Points. While redeemable for cash, some may prefer cash deposited directly; the extra conversion step could be a minor inconvenience.
5. Limited to Individual Account Holders
You can only have one Citi Custom Cash Card per person—so you can’t “stack” cards for more 5% categories.
Practical Tips and Best Practices
To get the most from your Citi Custom Cash Card, follow these actionable tips:
- Plan Purchases: If you’re tackling big expenses in an eligible category, group your purchases in one month to fully use the 5% cap.
- Set Category Reminders: Monitor your top spending category, so you know which purchases are earning the bonus each month.
- Combine with Other Citi Cards: If you have other Citi cards, you can pool ThankYou Points for more powerful redemptions, including travel.
- Automate Payments: To avoid interest and late fees, set up automatic payments for the card’s statement balance.
- Travel with Caution: Use another card when abroad to avoid foreign transaction fees.
- Monitor Offers: Watch for limited-time promotions or bonuses, especially as a new cardholder or existing Citi customer.
Cost-Saving Tips
Even though shipping doesn’t directly apply to this credit card, there are ways it can help you save money on purchases:
- Shop During Sales: Use the card during major sales or when making big purchases in your chosen category for maximum cash back.
- Take Advantage of Discounted Gift Cards: Buy gift cards for stores you frequent (and that fit eligible categories) to maximize 5% rewards.
- Pay for Subscriptions and Utilities: If services like streaming or internet fall under eligible categories (check terms), use the card to earn rewards.
- Stack Savings: Use retailer coupons, in-store offers, and your 5% cashback together for the best deal.
Summary
The Citi Custom Cash Credit Card is an adaptable cashback solution, offering one of the simplest and highest-earning structures for everyday purchases. You don’t need to track rotating categories or activate bonuses—the card handles everything automatically, rewarding you with 5% cashback where you spend most.
While there are earning caps and limitations, the lack of an annual fee, straightforward rewards process, and strong introductory offers make it a standout for casual spenders, beginner credit card users, and anyone who wants effortless rewards. Pair it with a strategic spending plan to squeeze out the most value each month—without hassle.
Frequently Asked Questions (FAQs)
1. How does the Citi Custom Cash Card choose my 5% cashback category?
The card automatically reviews your purchases each billing cycle and picks the eligible category where you spent the most. You’ll earn 5% cash back in that category (up to $500 per cycle), and 1% on all others.
2. What happens if I spend equally across multiple categories?
If you spend the same highest amount in more than one eligible category, Citi will choose one according to its internal process to award the 5%. You’ll still earn 1% on all other purchases.
3. Are there restrictions on how I can redeem my cashback?
Cashback is earned as ThankYou Points. You can redeem them for statement credits, direct deposits, checks, gift cards, travel bookings, or online shopping with selected partners. For simple cash back, statement credits or direct deposits are best.
4. Is there a foreign transaction fee with the Citi Custom Cash Card?
Yes, the card charges a foreign transaction fee on international purchases. It’s best used for purchases within the United States.
5. Can I have more than one Citi Custom Cash Card to get more 5% categories?
No, Citi allows only one Custom Cash Card per person. You cannot hold multiple cards for expanded category coverage.
If you value a credit card that rewards your top spending—without the headaches of rotating categories or annual fees—the Citi Custom Cash Card may be the perfect fit for your wallet. Be strategic with your purchases, pay attention to the $500 cap, and watch your rewards grow with every swipe.