Ever wondered how to make the most of your City Custom Cash card? Whether you’re hoping to maximize rewards, manage your budget smarter, or unlock more value from everyday purchases, knowing how this card works can make a real difference.
Understanding your City Custom Cash card is key to turning your spending into savings. In this article, we’ll break down exactly how it works, walk you through the essentials, and share practical tips to help you get the most out of every swipe.
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How Does The Citi Custom Cash® Card Work?
The Citi Custom Cash® Card stands out in the competitive world of cash back rewards by offering flexibility and maximizing your earning potential automatically. If you’re looking for a straightforward cash-back card that tailors rewards to your lifestyle, the Custom Cash® might be just what you need. This guide breaks down everything you need to know about how the card works, the benefits it provides, potential challenges, smart strategies, and some frequently asked questions to help you make an informed decision.
Understanding the Citi Custom Cash® Card
The Citi Custom Cash® Card is a no-annual-fee credit card designed to reward your spending in a smart, automatic way. Instead of locking you into preset bonus categories, this card automatically gives you the highest cash back rate on your top eligible spending category each billing cycle. In simple terms, you get rewarded the most where you spend the most.
What Makes It Unique?
- Automatic 5% Cash Back: Each month, you earn 5% cash back on your top eligible spending category (up to $500 in purchases). After you reach $500, you’ll continue to earn 1% on further spending.
- 1% Cash Back Everywhere Else: All other purchases earn 1% cash back, so there are rewards on every dollar.
- No Need to Activate Categories: Unlike some competitors, there are no rotating categories or the need to enroll. It’s all automatic.
- No Annual Fee: Enjoy rewards without worrying about a yearly cost.
Eligible 5% Categories
The card covers a broad range of everyday spending areas. The eligible categories for the 5% cash back include:
- Restaurants
- Gas stations
- Grocery stores
- Select travel
- Select transit
- Select streaming services
- Drugstores
- Fitness clubs
- Home improvement stores
- Live entertainment
It’s important to note that only your highest eligible category each month earns 5%.
How to Use the Citi Custom Cash® Card Effectively
To make the most of your Citi Custom Cash® Card and maximize the rewards you earn, follow these straightforward steps:
1. Apply and Get Approved
Start by applying—either online or in-person with Citi. Approval depends on your creditworthiness (generally, good credit or better increases your chances).
2. Activate and Set Up Your Account
Once approved, activate your card and register for online account management. This will help you track your spending and rewards each month.
3. Use Your Card Regularly in Eligible Categories
- Charge purchases in the eligible categories you spend the most on, such as groceries, restaurants, or gas stations.
- Aim to concentrate your highest monthly spending in one eligible category to maximize the 5% cash back.
4. Monitor Your Monthly Statements
- Each monthly billing cycle, Citi reviews your spending and applies the 5% rate to the category where you spent the most (up to $500).
- All other purchases and amounts above $500 per eligible category revert to the standard 1% cash back.
5. Redeem Rewards Flexibly
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Cashback comes in the form of Citi ThankYou® Points, which you can redeem for:
- Statement credits
- Direct deposits
- Gift cards
- Travel bookings
- Shopping with select partners
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There’s no minimum to redeem, and you can choose the redemption method that best fits your needs.
Major Benefits of the Citi Custom Cash® Card
The card is packed with perks that cater to different financial habits and lifestyles:
1. Tailored, Automatic Rewards
- No need to track or activate categories—Citi does it for you.
- Rewards automatically follow your spending patterns, so you never miss out on maximizing rewards just by forgetting to enroll.
2. Generous Cash Back Potential
- 5% is a strong cash back rate, matching or exceeding many cards’ bonus rates.
- You can earn up to $25 in cash back per billing cycle at the 5% rate (since $500 x 5% = $25).
3. Flexible Redemption Options
- With Citi ThankYou® Points, you’re not locked into a single cash back choice.
- Transfer points to select loyalty partners for greater value.
4. No Annual Fee
- Keep more of your earnings, since there’s no annual charge eating into your rewards.
5. Useful Welcome Bonus
- New cardholders often receive a welcome bonus after meeting minimum spending requirements (offers may vary).
6. Introductory APR Offers
- Many new accounts come with 0% introductory APR on purchases and/or balance transfers for a set period, making it useful for managing larger expenses or consolidating debt.
Challenges and Considerations
While the Citi Custom Cash® Card offers clear advantages, it’s important to be aware of potential limitations:
1. $500 Spending Cap on 5% Rate
- Once you spend $500 in your top category for a billing cycle, the 5% rate drops to 1%. Households with large monthly expenses in a specific category might find this restrictive.
2. Rewards Paid as Points
- The cash back is technically distributed as ThankYou® Points. While these are easy to redeem for cash back, it does require you to understand the points system.
3. No Bonus for Multiple Categories
- Only your top category earns 5% each billing cycle. If you split spending evenly across categories, you might miss higher rewards you could get from another card.
4. Foreign Transaction Fees
- Purchases outside the U.S. are subject to foreign transaction fees, making it less ideal for international use.
5. Credit Requirement
- Approval generally requires at least a good credit score (typically 670+).
Practical Tips for Maximizing Rewards
Want to get even more from your Citi Custom Cash® Card? Here are some actionable strategies:
1. Plan Your Spending
Arrange your monthly purchases so that one eligible category stands out. For instance, during months with heavy travel, use the card mostly for transportation purchases; during holidays, focus on restaurants or groceries.
2. Consider Pairing Cards
If you have other Citi ThankYou® cards or cards with different bonus categories, pair them to optimize rewards across all your spending. Move spending to the Custom Cash® Card when you know you’ll hit the 5% eligible category.
3. Track Category Spending
Keep an eye on your top categories each month to avoid splitting spending so evenly that you miss the 5% bonus.
4. Leverage the Welcome Offer
If your card comes with a welcome bonus, concentrate your spending early to qualify.
5. Redeem Points Wisely
Explore Citi’s redemption options. While statement credits are straightforward, transferring points to travel partners or using them for gift cards may provide extra value.
6. Avoid Foreign Purchases
Because of foreign transaction fees, use a different card for international travel.
Potential Costs to Watch For
While there’s no annual fee, be mindful of these costs that can eat into your rewards:
- Interest Charges: Carrying a balance can quickly outweigh cash back earnings. If possible, pay your balance in full each month.
- Late Payment Fees: Make payments on time to avoid penalties.
- Foreign Transaction Fee: A fee is charged for purchases made outside the U.S.
- Balance Transfer Fees: If using a balance transfer offer, check the applicable fees.
Best Practices for Cardholders
- Review your monthly categories regularly to see where you’re earning 5%.
- Use mobile and online tools to monitor spending and rewards.
- Take advantage of Citi’s fraud protection and online account alerts.
- If you have a Citi checking account, you might be able to set up automatic payments for convenience and payment reliability.
Conclusion
The Citi Custom Cash® Card is a smart choice for those wanting a personalized cash back experience without the hassle of activating or remembering bonus categories. Its automatic 5% rewards on your highest spend area each billing cycle make it both convenient and rewarding, particularly if your spending patterns fluctuate month to month. While there are some limitations—like the cap on 5% earnings and foreign transaction fees—strategic use can help you squeeze the most value from the card. In summary, for everyday shoppers who love flexibility but don’t want to juggle multiple cards or categories, this card delivers real cash-back benefits.
Frequently Asked Questions (FAQs)
1. How does the 5% cash back on the Citi Custom Cash® Card work?
The card automatically awards 5% cash back on your highest eligible spending category each billing cycle, up to $500 in that category. All other purchases and amounts over $500 in that category earn 1% cash back.
2. What categories qualify for the 5% cash back?
Eligible categories include restaurants, gas stations, grocery stores, select travel, select transit, streaming services, drugstores, fitness clubs, home improvement stores, and live entertainment.
3. Are my rewards automatically redeemed as cash?
No. Your earned rewards are given as Citi ThankYou® Points. You can redeem them for statement credits, direct deposit, gift cards, travel, or use them with select merchants.
4. Is there an annual fee for the Citi Custom Cash® Card?
No, this card does not have an annual fee, allowing you to enjoy rewards without yearly costs.
5. What credit score do I need to qualify for the Citi Custom Cash® Card?
Applicants typically need good to excellent credit, usually a score of 670 or higher, for the best chances of approval.
If you’re looking for a cash back card that smartly adapts to your spending, the Citi Custom Cash® Card is a leading contender. With its automatic rewards structure, lack of annual fee, and flexible redemption options, you’ll enjoy the convenience of a personalized rewards experience every month.